“What were you making in your last position?” A seemingly innocent question for hiring managers and HR executives to ask – at least it used to be…

California now prohibits employers and their agents from asking prospective candidates about their salary and benefit history. Companies are also required to publicly provide salary ranges for every position they are looking to fill. The goal of this new law (AB 168) is to narrow the gender pay gap. While an admirable goal, the application of this new regulation will be tricky. This law applies to every company, in every industry across California, regardless of the number of employees.

In a candidate-driven market, compensation is often the deciding factor when professionals are contemplating a job change. On average, TurningPoint’s candidates have accepted no less than a 20% increase in compensation before considering a move. Employers feel the pressure to meet that demand. If they don’t, they will lose out on the winning talent they are looking for. In fact, 89% of those candidates entertained at least one other offer when they received an offer from our client.

Can a Talent Acquisition Manager bring in viable, top-notch candidates without prior knowledge of their salary and benefit history? First and foremost, employers must be aware of the market rate for their industry and the roles they are looking to fill.

Download our latest Sales & Marketing Compensation Guide here. 

Listen as Ken Schmitt, Founder & CEO of TurningPoint Executive Search, and Paula Cleveland, Manager of Talent Acquisition Operations for Mitchell International, discuss more ways to navigate these murky waters to find the candidates your organization is looking for.

To ensure your organization is correctly implementing AB 168, consult with a trusted Labor and Employment attorney, such as the BTW Law Group.