Compensation, the New Conversation

If you intend to recruit and hire in the coming 12 months, be prepared for a new normal. The laws for asking
candidates to disclose their compensation are facing dramatic changes with some states and cities having
newly enacted laws. I.e. in California, you can no longer ask a candidate for their current or past
compensation.

Even if you do business in a state or city where compensation laws have not yet changed, candidates are
becoming less open about their compensation due to the recent attention surrounding all the newly enacted
laws.

Historically, most companies recruit to a compensation range. For instance, in the past a General Manager
position for a diversified client could range from $150,000 to $225,000 on base compensation based on the
“experience level” of the candidate. Obviously, that paradigm will shift.

Questions to Ask:
• What becomes the “right” offer if you don’t know what a candidate is currently making?

• Will we see a pattern of increased offer turn downs on the horizon?

• What is your company doing to avoid the pitfalls of recruiting someone without knowing their
compensation?

• How do you plan to address an offer with your corporate compensation team?

• How will you manage not only the candidate’s salary expectations, but also the hiring Manager’s
expectations?

• What do you share with a candidate through the recruiting process? A compensation range? A salary
mid-point? What number do you share with a potential candidate?