We also decided at Netflix that rather than offer new hires what would be widely deemed a reasonable increase over their pay at their former job, we would pay top of market and insist on high performance. Say a manager is interviewing two people with very similar backgrounds. The woman makes $130,000 and the man $150,000, a common discrepancy due to the long history of wage discrimination. They’re comparably good. Should the manager offer them both $160,000? The answer is emphatically yes. But when I offer this advice, I often get the reaction “That’s crazy! I mean, if we give her $140,000,
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