Dive Brief:
- Progressive will no longer ask for job applicants' salary history, it announced in a press release. The move adds the company to the growing list of employers making such decisions.
- The company says it has always used market data to set pay but that it hopes the change will give candidates confidence that they will be paid based on what they bring to the company, regardless of whether their previous employers paid them fairly.
- In 2018, the company says it is looking to fill 7,500 IT and analyst roles, corporate functions, and customer care and claims roles.
Dive Insight:
Progressive joins companies like Amazon, GoDaddy and Bank of America in eliminating requests for salary history from the hiring process.
Some, like Amazon, have noted that the move is largely in response to state and local mandates. So far, there are 13 salary history bans in the U.S., with many more proposals pending. The bans are aimed at assuring employees are paid for the work they’re being hired to do, rather than past employment history.
For some, the laws have required changes to job applications and interviews. They're also reportedly forcing businesses to rely more on market data, to discuss salary expectations earlier in the hiring process and to consider more transparent compensation plans.
