One job search portal reported that 75% of new postings on its site included salary expectations.
Whether you’re ready or not, what your job pays will be less private.
With nearly 19 million workers and some of the largest U.S. companies, California on Tuesday became the latest state to join the fast-growing nationwide wage transparency movement.
Just a year ago, only Colorado required employers to list salary ranges in job postings. A similar rule will go into effect in New York in November, and another in Washington state early next year. With the addition of California, Alphabet Inc., Meta Platforms Inc., Walt Disney Co. and Wells Fargo & Co. companies like will have to comply with these requirements until January 2023. New York State Governor Kathy Hochul also has a bill on her desk and will introduce it. within 270 days of signing, and several other states give companies a paid payment expectation for on-demand open roles.
Even where it’s not required, employers are starting to list pay information in job postings – more to follow. A recent Willis Towers Watson Plc survey of executives found that 17% of companies already voluntarily list a salary range, and 62% of organizations plan or are considering doing the same.
“We’re getting to the point where an unpaid job ad is like walking through the supermarket and not seeing the price on your soup can,” said Scott Moss, director of the Colorado Department of Labor and Statistics. of Labor and Employment, where she oversees the implementation of the state’s pay transparency law.
Regulators have seized on wage transparency to close stubborn gender and racial wage gaps. Historically, employers have kept wages private, reinforcing long-standing taboos that silence employees about what they do. This can lead to disparities that disproportionately harm women and other underrepresented workers. But a little sunlight can reveal inconsistencies and force adjustments.
These new laws don’t mean that everyone knows exactly how much their tablemates are earning. But they require enough information to help workers if they are underpaid. All anyone has to do is look at the open positions for their current role and see if or where they fall into the range.
“Why shouldn’t anyone know how much a job pays?”
“Companies are extremely concerned and expect workers to raise their hands [for pay bumps,]” said Nancy Romanyshyn, director of Syndio, which makes software that helps companies close the pay gap. At the very least, managers should be willing to explain why some jobs pay more or less than others so employees understand where they fit in. In some cases, they they may even have to reset or re-evaluate the payment.
Although the process can be disruptive and uncomfortable, it ultimately leads to greater justice, Romanyshyn said. “I know I feel disgusted when I talk about salaries. I’m at an age where you don’t talk about politics, you don’t talk about your salary, you don’t talk about religion,” he said. “So why wouldn’t someone know how much the job pays?”
Workers increasingly agree with this idea. In a recent survey by HR analytics platform Visier, 80% of respondents said they want some form of pay transparency, and 68% said they would change jobs to work where pay was more visible. Younger generations also feel more comfortable sharing what they have earned than older generations.
Generation Section | Younger workers are more comfortable talking about their pay
Denver-based financial professional Andrew Wright, who is currently looking for a new job, is turned off when he comes across good opportunities missing this important information. “Even if it’s a job where the duties and the day-to-day looks interesting to me, if I know they’re listing the salary and they’re not doing it, it’s a little disheartening,” the 31-year-old said.
Wright says he’s seen posts that try to violate Colorado regulations by not specifying where the work can be done.
“Are they trying to hold back for some specific reason? Are they trying to hide it because they won’t offer much?” he said.
Trying to get ahead of the rules and appeal to workers like Wright in a tight labor market, some companies have decided in advance on pay for all new roles, regardless of location. Seattle-based Microsoft Corp., for example, a few months later announced a general salary range rule for all postings, not just those based in Washington state, as required by state law.
Job search portal Indeed said earlier this year that 75% of new postings on its site included salary expectations; LinkedIn reported a 35% increase in the phenomenon in the first half of this year. Compensation specialist Justin Hampton has also seen an increase in reports on government payments in the UK, India, Australia, New Zealand and the United Arab Emirates.
Some organizations may continue to buck the trend. State fines for violating payment transparency laws are relatively small, starting at $100 per incident. Some, like New York, exclude first-time offenders. And, of course, many states do not have such laws.
Additionally, there is no requirement to list bonuses or benefits that make up a good portion of compensation. And to circumvent the rules, employers can forego open postings altogether, using backchannel recruiting and networking to fill jobs that may hinder diversity efforts. Although this is difficult to do when recruiting on a large scale.
Still, Colorado has fined only three companies out of 278 complaints it has investigated so far. Moss, the Colorado executive, said most big firms got on board almost immediately. Some smaller companies were initially unaware of the law or did not have the staff to comply quickly.
“Companies are smart enough to say, ‘We can like it, we can hate it, it’s happening. So we have to prepare and make sure we put our best foot forward.'” Syndio payment consultant Romanyshyn said. “Companies need to have a big conversation with employees about how they get paid.”
(Other than the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)