Why do women make less than men?

[Subyman]

I don't see this working. If the company operated in a vacuum, sure they could control the negotiation process. However, they do not and must compete with surrounding companies for potential employees. They will hamstring themselves by not being able to renegotiate salary when an employee is shopping jobs. Say I work for company A that does not negotiate. I get an offer from company B for 10% more than I currently make. I go to company A to tell them of the offer. Company A can't offer me any more because they do not negotiate. Instantly they have no recourse against company B pouching good employees.

It does not make sense. Our job market is structured on competing for the best employees. Eliminating the negotiation process takes away a company's tools they need to compete with other companies.

It is also a slap in the face to women. These companies are saying that women are inferior to men at negotiations. They are being sexist and instead of trying to fix that root problem that they "observe" they are trying to change the entire structure of business.

 

[WilliamM2]

Great idea.
Someone with poor negotiations skills can now get paid the same for equal work. You get paid for your skills they need for the job.
Hasn't government always worked this way? Not only is this good for women, it is good for generally disadvantaged groups too.

The government? That's probably the strongest argument against the practice I will ever see.

 

[Subyman]

The government? That's probably the strongest argument against the practice I will ever see.

People the government needs, but can't pay within their business structure simply become contractors 🙂