Last month, Amazon, the world’s largest online retailer, issued a directive to recruiters and hiring managers: nix the salary history questions.
BuzzFeed reports that a company message, posted on Jan. 16, states that Amazon recruiters and hiring managers can no longer “directly or indirectly ask candidates about their current or prior base pay, bonus, equity compensation, variable pay, or benefits” or “use salary history information as a factor in determining whether or not to offer employment and what compensation to offer candidates.”
The instructions also explicitly ban the use of tools like LinkedIn Recruiter to estimate or otherwise ascertain an individual’s prior salary, Buzzfeed notes.
An Amazon spokesperson tells Buzzfeed the new rules were shared with all Amazon recruiters in the United States, and apply equally to salaried employees like software engineers and hourly workers like call center employees.
Embracing Change
Amazon joins a growing number of tech companies that have banned the salary history question in the United States. Others include Facebook and Google.
Some of it is in response to city and state laws that prohibit employers from using or seeking candidate’s current or prior salary information. In releasing details of its salary inquiry ban, Amazon cites this as the reason for what it calls “a proactive stance to be consistent for all candidates residing in, or applying to jobs in, the United States.”
Nevertheless, with pay equity as it relates to gender making headlines, and the salary history question cited as contributing to ongoing pay discrepancy, it’s likely Amazon, like other employers, has been motivated by societal change, as well.
Answering Questions
Although the company message was posted on Jan. 16, the salary inquiry ban took effect on Jan. 1. The directive, known as Amazon’s US Compliance Approach to Salary History Inquiry, provides guidance for recruiters and hiring managers.
“What you can’t do” includes:
- Directly or indirectly ask candidates about their current or prior base pay, bonus, equity compensation, variable pay, or benefits
- Use salary history information as a factor in determining whether or not to offer employment and what compensation to offer a candidates
- Consider salary history information even if the candidate volunteers it
- Document a candidate’s current or former salary in any Amazon recruiting systems or third party databases such as LinkedIn Recruiter, etc.
- Ask or rely on a third party recruiting agency to ask a candidate for his or her salary history
- Seek or use salary history of candidates who currently reside in the U.S. or U.S. territories but are being considered for roles in another country
- Seek or use salary history of candidates who currently reside outside of the U.S. but are being considered for a role in the U.S.
“What you can do” includes:
- Discuss a candidate’s compensation expectations provided that you in no way prompt them for any data related to their current or past compensation
- Discuss competing offers the candidate may have
- Discuss Amazon’s compensation philosophy
Additionally, a FAQ section provides information for recruiters and hiring managers. Here are two questions and answers that are particularly noteworthy.
Q: What does “salary inquiry” mean? Does this include asking about things like benefits, employee perquisites, 401k plan, etc.?
A: Yes, the definition of “salary inquiry” is broad and includes all aspects of compensation (base, bonus, stock), as well as employee benefits and perquisites.
Q: What can I say to a candidate who voluntarily shares their salary history even if I didn’t ask for it?
A: As an interviewer, if a candidate offers up information regarding salary, say “Thank you, however Amazon does not use current or past salary data to make hiring decisions. You can discuss any questions you have about our compensation model with a recruiter.” You can continue your interview without documenting the data they shared or relaying it to others.
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Paula Santonocito, Contributing Editor for Recruiting Daily Advisor, is a business journalist specializing in employment issues. She is the author of more than 1,000 articles on a wide range of human resource and career topics, with an emphasis on recruiting and hiring. Her articles have been featured in many global and domestic publications and information outlets, referenced in academic and legal publications as well as books, and translated into several languages. |