Research indicates that CEOs who wish to take immediate action to reduce pay disparities for Black and women employees should make one change: stop asking about prior pay. Salary history bans in 14 states have led to substantial pay increases for Black – up 13 percent – and female – up 8 percent – for candidates. There is a clear disadvantage for candidates seeking employment at businesses that still ask for salary history information because having that information gives employers a bargaining advantage. Instead of asking for this information, employers can ask what an applicant hopes to earn, while highly paid job applicants are free to volunteer their current salary to set employer expectations.
