Have you heard? In an effort to close the wage-gap between men and women in the workplace, New York City Mayor Bill de Blasio (D) signed an amendment to the New York City Human Rights Law. This law takes effect on Halloween. Commencing October 31, no employer may inquire into the salary history of prospective applicants.
Looking for a Hedge Fund Job in NYC?
It is impossible to predict how this provision will affect hedge funds and, more broadly, NYC employers. However well intentioned the law may be, there are certain to be unintended consequences, some of which may affect those pursuing a career in hedge funds and the hedge fund industry as a whole. After all, New York City is the hedge fund capital of the world, with over $1 trillion in assets under management, which equals about one-third of all monies invested in the industry.
This new piece of legislation should not deter anyone from pursuing their dream of a hedge fund job. It is easy to envision instances, in which no requirement for disclosure of one’s previous salary history could prove advantageous, particularly if the prospective applicant is trying to upgrade from a poorly negotiated compensation deal with his or her current employer.
It is also true that certain job seekers may be placed at a disadvantage if his or her salary history is not knowable. Fortunately, the law in question allows for the voluntary disclosure of one’s salary history. However, the existence of this law may cause hedge funds to err on the side of caution and eliminate any discussion of an applicant’s salary history as a matter of policy.
Salary Negotiation
The fine art of salary negotiation does not begin until an offer is on the table. Without a salary history as a starting point in these proceedings, prospective employers will need to develop a compensation strategy that relies almost entirely upon the value a given applicant brings to the firm so that a conclusion may be reached with regard to the upper limit of compensation.
At the same time, the applicant must formulate, in his or her own mind, an acceptable range of compensation. A positive outcome for both parties only occurs at the nexus of these numbers.
More than ever before, access to a trusted compensation guide, such as the 2017 Hedge Fund Compensation Report will prove to be an invaluable resource for both the job seeker and the prospective employer. Such a report provides applicants with the data necessary to make informed decisions with regard to the level of compensation offered by a prospective employer and provides the would be employer with a broad view of industry pay scales.
About Hedge Fund Jobs
The hedge fund industry continues its winning streak with 9 straight months of gains, the longest winning streak since the financial crisis. Hedge fund assets under management continue to climb and, although the number of hedge fund firms is in decline, the demand for talent is rising. The hedge fund industry is replete with opportunities for well prepared applicants…even in New York City!
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