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In the past, most companies did not practice salary transparency. Now, it’s more common to discuss pay openly…instead of hiding it under a rock.
This has helped narrow the pay gap, changing companies for the better. So, employees are trusting businesses more. And employers get to enjoy a 30% increase in applications started. That’s a win-win situation if you ask me.
Make Pay Transparency a Common Practice
Now, discussing money is a touchy subject for many. Still, it’s important to do it.
Many people were raised to not talk about money, but times have changed. Making “salary” a common topic will not only help close the gender pay gap but also help you gain your employees’ trust. Plus, salary transparency, starting with the hiring process, also helps you boost your talent pool.
And, honest communication between employers and employees encourages them to work harder. Especially if they feel there is an open door for conversation about pay.
Salary transparency doesn’t only benefit your business. But it also benefits prospective and current employees. Currently, the cost of living is expensive and changes day to day. And job seekers have goals, dreams, and ambitions too. Think about it. Someone applying for a job may be hoping to make enough money to pay for their expenses and save up for a larger purchase, like buying a home. So it is vital to openly and honestly discuss salary.
Thus, you must explain your salary offerings, bonus benefits, and compensation review policies to employees. Doing this helps ensure confidence when making decisions about affordable mortgages, or how much to contribute to a 401K.
So, with this knowledge, employees will be happier knowing they can set themselves up financially and feel more satisfied in their jobs.
Be “Salary Transparent” in Job Postings
There’s a place where discussing salary transparency is crucial… and that’s in your job postings.
The truth is, job seekers are more likely to apply for openings if the salary is listed. And that’s still true even if it is just a range. So don’t be shy. Being transparent about salary can get you more applicants in the door.
Think about it for a moment. Wouldn’t you feel more confident committing to something if you knew exactly what you were signing up for? I’m sure you said “yes”. And your prospects and employees feel the same way.
This has been proven time and time again:
In 2018, a LinkedIn study showed salary as the #1 part of a job ad that is “helpful,” “appealing,” and makes candidates “more likely to apply.” You see? Candidates will find you more attractive when you are transparent about salary.
Adobe’s more recent New Future Workforce Study found “Gen Zers won’t even apply to a job if the salary isn’t listed.” This just goes to show how important this information is. So, you could be turning away top talent by choosing to hide salary data. It’s like shooting yourself in the foot.
And…a 2023 survey from ResumeLab found “80% of respondents said they likely wouldn’t apply for a job if salary range information was lacking.”
Outside of increasing your chances of getting more “applies,” adding pay to your postings also saves time for everyone involved in hiring. So, if the salary is not listed and candidates go through the entire interview process only to find out the pay isn’t enough for them, both parties waste time. And that’s a lose-lose.
In some places, it is also the law.
Follow Salary Transparency Laws for Job Postings
Listing salary information in job postings was not a legal requirement until recently (for some states and cities).
And, based on the trends, it seems more companies (states, counties, and cities) will follow suit.
“17% of companies already provide the information across US locations that don’t have legal requirements to do so.”
source: Bloomberg
Here are 6 current “pay transparency” laws for job postings (as of February 2023):
1. Colorado Salary Transparency Law
Effective Date: January 1, 2024
Colorado changed its salary transparency law. Now, employers must share pay info in job ads and promotions. If there’s a pay issue, employees can claim it within six years instead of three. Also, new mandates will govern the investigation, mediation, and enforcement of wage discrimination claims. So, Colorado’s Department of Labor and Employment will be better supported to handle these claims. These new rules will take effect on January 1, 2024.
2. New York City Pay Transparency Law
Effective Date: September 17, 2023
The main impact of the NY pay equity law on job descriptions is about par range. Currently, it requires employers with 4+ employees to list a “good faith” minimum and maximum salary range for all advertised NYC job, promotion, and transfer opportunities. And this applies to both inside and outside the company. another thing to note is this. The law only covers jobs in New York or those supervised from New York. And it doesn’t include temporary job ads. So, if employers don’t follow these rules, they could be fined. The fine is $1,000 for the first time, $2,000 for the second, and $3,000 for any more violations.
3. Ithaca, NY Salary Transparency Law
Effective Date: September 1, 2022
This law states that employers must mention the least and most that they will pay for a job or promotion. And if they don’t, they will be acting against the against the law.
4. Westchester County, NY Pay Transparency Law
Effective Date: November 6, 2022
This law says if a company has 4 or more workers and is advertising a job or promotion in Westchester County, they must tell the least and most that they will pay.
5. Washington Salary Transparency Law
Effective Date: January 1, 2023
In Washington state, employers must mention the salary range, benefits, and other pay details in job ads.
6. California Pay Transparency Law
Effective Date: January 1, 2023
In California, Senate Bill 1162 is for employers with 15 or more employees. So, these employers must show salary details in job ads to make pay fairer, according to the Bill.
And, even more, here are some other states, cities, or counties with pending legislation around pay transparency in job postings:
- Albany County, NY (effective September, 2023)
- Connecticut (in development)
- Jersey City, NJ (April 13, 2022)
- Massachusetts (in development)
- New York (effective in September 2023)
- South Carolina (in development)
Pay Equity Compliance
Pay transparency is a great way to attract more qualified candidates to your job ads. And some places legally require it. But let’s say you’re editing hundreds of job descriptions with a big team. How do you ensure your JDs have salary transparency?
You would need a tool that can check for things things at scale. If you are thinking of a salary compliance tacker, then you are on the right track.
Ongig’s Text Analyzer tool helps you track salary compliance in your JDs. This functionality is helpful, especially when you’re writing JDs at scale with a larger team. While you want to keep a human eye on the process, this tool can make the process easier and faster. Thus, saving you a lot of time and effort. This level of accountability is how you can ensure you are compliant.
Here’s a quick summary of how it works:
- Ongig scans for non-compliant jobs every hour. The compliance report functionality alerts you of non-compliant roles so you can make edits. So, it breaks your JDs down by “Location Type” and shows if roles are remote or onsite for easy organization.
- Ongig emails you a compliance report. If you sign up for the “Compliance Report” functionality, you get an emailed compliance/pay equity report as an extra reminder. And so this is to help you keep track of “Non-Compliant” job listings.
- Ongig ensures your remote job JDs are compliant. Depending on the State, remote jobs have their own Pay Transparency laws. So, Ongig tracks remote roles for pay equity compliance and alerts you in the job editor so you can easily make edits.
- Ongig flags missing salary info for different cities, states, and municipalities. If your JDs are missing salary details, then you’ll get an alert based on location for pay transparency legislation. It even sends you multiple alerts if your JDs are posted in multiple areas (for example, remote jobs or jobs in different states).
Why I Wrote This:
The more open you are about pay transparency, the more your business will grow. And we know you want to ensure your job postings are compliant with “pay equity” laws. And that’s where Ongig’s software comes in to help you quickly scan them for missing salary info. So, you can easily edit any JDs that are not compliant.
Shout-outs:
- Podcasts: What’s new at Indeed with EVP Maggie Hulce (by RecTech Media)
- New Data On Financial Transparency At Work [2023 Report] (by Dominique Goldschmitt)
- Adobe’s Future Workforce Study reveals what Gen Z is looking for in the workplace (by Vaishali Sabhahit)
- Quick Facts About the Gender Wage Gap (by Center for American Progress Action Fund)
- This Job Description Heatmap Shows You What Candidates Really Care About (and What They Ignore) (by Greg Lewis)
- Most US Companies Are Willing to List Salaries in Job Descriptions (by Jeff Green)
- Albany County, New York’s New Law Requiring Disclosure of Pay Ranges in Job Postings (by The National Law Review)
- NY State Will Now Require Companies to Post Salaries in Job Ads (by Bloomberg Law)
- More states roll out pay transparency laws (by Erin Bendig)
- Connecticut Proposes Legislation To Increase Salary Transparency In Job Postings (by Kelly M. Cardin and Nicole S. Mulé)
- Westchester County, NY Pay Transparency Law Takes Effect (Law and the Workplace Blog)
- Salary Transparency Comes to (Some) of New York State (by Ogletree Deakins)
