Base salaries, Bullsh*t and Bias.

Nice title huh? My mum will be none too impressed but sometimes, life needs an almost swearword.

A really good recruitment peer of mine, Mark Wilson, posted last week about asking for current base salaries and I can't stop thinking about it.

I think I must have said this sentence at least 30 times a week for the entirety of my recruitment life. "Do you mind me asking your current base salary?".

The worst bit, most people didn't mind. It was par for the course (I think this is a golf saying... sounds good), when going on your job hunt.

You just expect it don't you? Sometimes it's a 21-year-old graduate recruiter, and you the 15 years + experienced specialist, going through the motions "notice period, current base, base salary sought".

If you push back or refuse to disclose it you get "we can't submit you to certain clients".

I call bullsh*t. And I am going to tell you all why.

I shall explain it all so you all have the information, and we can stop with this stupid charade.

Information is power my friends:

The why:

We are taught as recruiters, the market supports xx uplifts. Sometimes it goes up, sometimes it goes down but let's say for argument's sake it's 10%-20%. I need to know your base salary so I can tell you based on my very important experience, as a very important recruiter, that your market rate is this "xx".

LIES.

That's not your market rate. That's the rate of market percentage uplift.

Some banks even have specific policies only allowing for a certain percentage of uplift. They tell me it is to stop bribery (I am not sure how true this is, so I shall announce my second bullsh*t of this article, Mr Bank).

There is no such thing as market percentage uplift.

What there is, however, and what is important for you to know, is supply vs demand. This goes up and down depending on what's going on. Easy example - when there is a tonne of KYC remediation going on, you can ask for a higher day rate, because people will pay. When it's quiet, the rate drops a little.

Same for perm roles but I'm sure you get this. You will hear "candidate-driven market" said a lot by the old-school recruiters.

NB: we are very much in a candidate-driven-market atm, so if you're thinking about looking. Drive baby drive - supply is less than demand.

The why it is stupid:

It is a lazy recruiter (or a non-skilled one) who talks in percentage uplifts. It's irrelevant. It is no one's business but your own what you currently earn. It shows a lack of understanding on how to benchmark a role bespoke to a client, market, or time.

The only thing which should be discussed is the salary banding for the role at hand.

It is stupid to talk in percentage uplifts as it perpetuates the cycle of bias.

We can all agree that either unconscious or intentional bias plays into what people earn.

To remind, these are the 9 protected characteristics under the equality act.

• age.
• disability.
• gender reassignment.
• marriage and civil partnership.
• pregnancy and maternity.
• race.
• religion or belief.
• sex.

Do you think that if you apply and get a role over someone who also applied, who perhaps hasn't had seen any pay gap discrimination, you should be paid an equal market rate for the role?

Not your market percentage uplift. The market rate for the role. Based both on the current supply vs. demand, and your previous experience and skillset.

I do.

Separate point - let's not forget those chums who have been in one place for 10 years and are nowhere near market rate, and some new firm takes advantage by offering them a "20% uplift". Sneaky snakes.

To conclude and what we are actually doin' about it.

We are trying very hard to break bad habits when we chat with candidates "what salary are you looking for".

We are speaking with clients daily about this, and trying to create a dialogue.

We published our annual salary guide direct onto our website, so everyone at every level can see the typical bandings for roles, all year round. https://www.fincselect.com/salary-guide.

Bias sucks. It affects those without power and is perpetuated by those with it.

So, in our very small FincSelect-y way, we are trying to change the conversation.

I will end with some alliteration that I have made into my own little motto:

"Base salaries are Bullsh*t, because of Bias"