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The real reason why companies don’t share salary information (Medium)
The short answer is “Unfortunately, it’s not the Recruiter’s decision”. The longer answer is well… A LOT.
As you’ve probably seen already, NYC Employers will be required to post salary ranges in job postings starting in November 2022. It was supposed to kick off back in May but, well… companies didn’t agree!
Openly sharing salary information is fantastic, and I could not be more excited about it. This decision will push more equitably, inclusive, and fair hiring practices and I’m 100% that other States will follow suit shortly. (More great news!)
Candidates, Recruiters, and ED&I Practitioners have been advocating for pay transparency for years so… why is it taking this long? Why all the push-back?
Let’s take a few minutes to go over a very quick summary of why companies have been struggling with openly sharing their salary bands:
💰 Pay Parity
Unfortunately, many companies and leaders still don’t believe in pay parity (meaning, equal pay for equal work). Yes, even in 2022.
💰 Pay Equity
Many companies believe in pay parity and have reviewed their internal processes and systems to ensure they are following an “equal pay for equal jobs” framework.
However, they are still struggling with pay Equity — which directly impacts the systems that determine, among other things, who gets access to roles/promotions/salary raises/bonuses and when.Enter the pay gap!
💰Pay Transparency and its impact on Talent Retention
Sharing salary bands with external candidates (and the World), also means that the current employees at that company will have access to that information too, and unfortunately, this is one of the major reasons why companies decide not to share salary data.
If a company has been struggling with Pay Parity and Pay Equity, it’s likely they don’t have an internal Pay Transparency policy either (basically, no one officially knows what their colleagues are making, what the salary bands for their roles are, or even how they fall within that band).
Sharing salary information with external candidates, without taking the necessary steps to ensure current employees understand their own salary bands and how promotions/raises are decided, could hugely impact that company’s talent retention strategies.
Hope this info helps to give a bit more context to the many conversations that have occurred during the last few weeks.
Dani Herrera is an Equity, Diversity, and Inclusion Professional. She specializes in analyzing & deconstructing processes to help organizations achieve Inclusive and Equitable Cultures.
Dani has been named one of Mogul’s Top 100 DEI Leaders in 2021.
Please visit https://www.linkedin.com/in/danielagherrera/ to learn more about her career, speaking engagements, and press features.

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Do you know one in orthopedics?

[embedded content]

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me: “Hello, Bob. How are you?”
Bob: “Great!”
me: “So first… let’s start off by telling us what you know about our company.”
Bob: “Not much other than a quick visit to your website.”
me: “Ok then. Thanks for your time. Have a nice day”.
Click.

Share your shortest interview story with me at [email protected]

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Red Flags and Warning Signs: What Could Trip Up a Startup during VC Due Diligence (Medium article written by Lauren Epstein)
To secure VC funding, a company must be special — not only having significant positives, but also avoiding serious negatives.
These negatives are often uncovered during due diligence, an exploratory process that VC’s conduct with a company of interest prior to issuing a term sheet.
In general, due diligence is intended to serve two purposes:
1. Assist in building an investment thesis to inform a proposed investment in the company; and
2. Uncover any potential problems.
Trust me — VC’s hope not to find problems. We only dive into the resource- and time-consuming process of due diligence if we are excited about a company. We’re hoping for good news!
However, the reality is that due diligence can reveal problems.
Below is consolidation of some of the main types of red flags and warning signs that can come up during due diligence from the perspective of the team here at OMERS Ventures.
A company’s business model is one of the most important components we look at during due diligence. It is also often the source of red flags.
1. Bad Unit Economics: If a company cannot acquire customers at a cost that is materially lower than the revenue it will generate from those customers, the business may have no future.
2. Quality of the Financial Model: A financial model that contains bad, baseless, or improper assumptions is a double red flag: it calls into question both the decision-making of the team and the fundamental premise of the business model.
3. Shaky on KPIs: Not knowing what your KPIs are or not knowing their measure and movement is bad sign.
Key Takeaway: Have a solid business model that tracks your KPIs, with strong unit economics and reasonable assumptions.
As VC’s dig into a company, one of the key things we are examining is growth history.
1. Slow, Uneven, or Negative Growth: Anything other than strong growth is a warning sign that will cause us to ask questions.
Key Takeaway: If you have slow, uneven, or negative growth, be upfront and provide an explanation as to why it should not be considered a problem.
A company’s market contains both its customers and its competitors — two groups vital to success or failure.
1. Small TAM: Having a small total available market that is not growing is a significant problem. It may be possible to mitigate, but any such explanation must be compelling.
2. Not Knowing or Not Revealing Competitors: Demonstrating ignorance or lack of transparency about competitors is a real no-no. Please never tell a VC that you have no competitors for your customers’ business. Trust me; you always do.
Key Takeaway: Find a big and/or growing market, and be upfront and knowledgeable about your competition.
A strong, capable team is one of the most important factors in VC decision-making. Numerous and significant red flags can arise here.
1. High Turnover: Employee retention is key at every level. High turnover among the senior team is particularly concerning as it can show a lack of cohesion.
2. Above Market Compensation: Executive pay that is higher than market average — either now or in forecasts — can call into question the team’s priorities.
Key Takeaway: A dedicated and cohesive team with strong decision-making abilities is a must.
For most technology start-ups, rights to intellectual property are fundamental to operations.
1. Unclear IP Rights: A company must be able to show a clear line of ownership or (at minimum) the right to use all key components of their operational technology. Any ambiguity in this area is a huge warning sign.
Key Takeaway: Clean up your IP rights prior to fundraising.
A company’s fundraising background and cap table can raise many red flags.
1. Complicated Cap Table: A complicated cap table is often the result of complex earlier fundraising rounds that introduced multiple share classes and/or byzantine rights and liquidation structures.
2. Overly Complex Deal Terms: A complicated cap table can lead to having overly complex deal terms, which arise as a result of earlier rounds with similar characteristics such as ratchets, liquidity preferences, and retraction rights.
3. Imbalanced Cap Table: An imbalanced cap table can create misaligned incentives. This can occur, for example, if a non-management investor holds significant or potentially controlling ownership or if the CEO herself does not have material ownership.
Key Takeaway: A clean, balanced cap table and straight-forward fundraising history are key assets.
The behaviour of the senior team — and particularly the founder(s) — is of critical importance in determining the potential success of an investment and the long-term partnership it creates.
1. Lack of Integrity: Warning signs about a person or team’s integrity can take numerous forms but often involve not being forthright about aspects of the business, history, market, competition, or other key factors.
2. Not Being Responsive During Due Diligence: If a founder is not responsive, delays providing information, or obfuscates when asked for specifics, this is a red flag.
3. Deal Fatigue: How a founder handles herself during negotiations can have a negative impact on the likelihood of reaching a deal. As one OV partner put it, “Deal fatigue is a real thing.”
Key Takeaway: Be honest, forthright, and responsive.
This list only some of most common examples of red flags we see; it is far from comprehensive. If you are a founder and are concerned that some of these (or other red flags) may apply to you, don’t panic! Here are two ways to help mitigate any issues:
1. Always be upfront and disclose clearly and fully; and
2. Have a clear, reasonable, and honest explanation.
If the problem can be fixed, work with the VC to do that. If not, help explain why there are ways around it or why it should not be seen as a fatal.
It is very rare that a company will sail through due diligence without raising any warning signs. The key is to manage and minimize them as much as possible.

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Step 1. Write a Job Description that focuses on results.
Rather than describing what the employee does and desired qualifications in your job posting, define what needs to be done in the role and what success looks like. Put that in the job post. A-Players are attracted to knowing what success looks like.
Step 2. Add a secret question to your online application to weed out the lazy.
In your job posting ask a very specific question #7 that requires thinking and thoughtful answer. Example: “What’s the last webinar you attended relevant to this job & what did you learn from it?” Delete applications with no answer or poor answers to #7.
Step 3. Add an extra assignment to screen for the diamonds.
Ask the people who are left to record a very short video answering a question that’s relevant to the role. You’ll be shocked how many won’t bother (cut them), and how many outstanding answers you get from resumes that didn’t look special.
Step 4. Do real work with them.
Schedule a group video interview where the candidate participates in solving a real problem with your team. Cuts down your interview time and you get to see how they collaborate, communicate, and think. A-Players will rise to the top. The “good interviewee/bad employee” will be exposed in this exercise.
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