http://www.wsj.com/articles/some-companies-bar-job-applicants-from-haggling-over-pay-1432683568
5/27/15
Today’s article in the Wall Street Journal titled “Haggle Over Salary? It’s Not Allowed”is creating quite a stir amongst bloggers. It was even profiled on the Today Show. The article as the title suggests is about job offers from companies like Reddit and Magoosh that are set and aren’t able to be haggled over. Applicants have a “take it or leave it” decision to make when applying for positions at these particular companies because negotiating a higher starting salary is just not allowed. The advocates of this policy, including Reddit CEO Ellen Pao, say that this policy promotes fairness and transparency because pay negotiations put women at a disadvantage. According to researchers in the article men are four times more likely than women to negotiate salaries. This discrepancy can grow potentially leading to the pay gap currently seen between genders. Ms. Pao argues that “people who perform the same should be paid the same” — the reason Reddit has implemented this policy.
Opponents of the “no haggle” policy contend that these companies are less likely to get A-level talent because these sought after applicants may shy away from employers that preset their compensation. Others say that such policies may actually be squashing women’s abilities to negotiate. A Microsoft recruiter said on a blog that she wants “candidates to feel like they’ve won” and that these no haggle policies like Reddit’s is “taking that away from them”.
Clearly the landscape for hiring and negotiating salaries is changing. Is the future going the way of the no haggle car purchase? In situations similar to this where things are changing rapidly I often ask my clients some thought provoking questions because how you interpret and adapt to these scenarios can make a significant impact on your career. For instance, what is the opportunity in this for prospective employees? Would you apply to a company that has a set or no haggle policy? Would you feel as if you “lost out” by not negotiating or are you of the belief that it may actually take the stress out of the hiring process? Either way, what do you need to know to be fully prepared? What does an employee make in the same position doing the exact same thing at a company where you have the ability to negotiate? If you’re a woman how does the knowledge that men are four times more likely to negotiate than you change your perspective if at all? The article states some companies including Reddit give incoming employees a choice of two equal offers (equity vs. cash). Which of these are better for you at this point in your career? Do you need help in navigating the new rules of today’s hiring policies? Threadcount Coaching can help.
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