Ingka Group, the Netherlands-based company that operates the majority of Ikea stores worldwide, implemented a policy earlier this month eliminating salary history queries from the recruiting process.
The affected Ikea stores will base salary offers on job-specific experience and an assessment of competencies, within a specified salary range. The decision was made to ensure fairness and avoid replicating pay gaps by previous employers. The decision will be implemented in 390 stores and affect up to approximately 160,000 employees.
We’ve rounded up resources and articles from SHRM Online and other sources to provide context.
House Passes Paycheck Fairness Act
On April 15, the U.S. House of Representatives passed the Paycheck Fairness Act, which would, among other provisions, prohibit employers from asking job applicants about their salary history or relying on salary history to set compensation.
A growing number of U.S. cities, states and employers have adopted policies to keep job applicants from being asked to divulge their salary histories. Whether salary-question bans produce the intended results, however, or wind up backfiring or doing little for those they’re designed to help remains to be seen.
Most Employers Open to Negotiating Salary, Not Benefits
The majority of employers are open to negotiating salary for some or all positions once a job offer has been made, but that openness does not extend to bonuses and benefits, according to recent research.