Salaries have long been treated as a taboo subject in the workplace. But the reality is, employees talk – and the odds are they already know what their peers are making. (Or at least they think they do, based on office gossip and hearsay!) They also have access to compensation data websites that can tell them how their own pay situation measures up against the current market rate.
That being said, it should come as no surprise that pay transparency – companies being open about the salaries they offer – is becoming more common. In fact, it’s a legal requirement in an increasing number of places. It will ultimately give workers a fuller understanding of why they’re paid what they are, and what they need to do to reach the next step up on the compensation ladder.
It’s making a difference.
Changes in pay transparency laws are likewise changing some of the fundamental ways companies determine salary ranges and recruit candidates. Embracing it at your company can make you better known for your culture of transparency, trust and honesty. It may take some getting used to at first, but it can have a profound positive effect on your branding messages and your competitive recruitment edge.
- According to recent research, 75 percent of job seekers have reported they’re more likely to apply for a posting that includes a salary range.
- Another study shows that employees are more productive when they know what their managers earn.
What might pay transparency look like for you?
Ultimately, compensation is much more than just numbers and quantifiable facts. It’s a reflection of your company values and how you treat your team – and it’s directly tied to job expectations and performance. Pay transparency requires a company to reflect on how these factors play into salary considerations. This in turn can also help uncover bias and lead to a more inclusive workplace – another top priority among today’s best talent.
- Pay transparency is or will soon be legally mandated in New York City, as well as in the following states: California, Colorado, Connecticut, Maryland, Nevada, Rhode Island and Washington.
- Laws aside, many companies are stepping up on their own. For instance Microsoft, which is headquartered in Washington, has extended pay transparency policy to all its U.S. job openings.
To continue the conversation about pay transparency and how it might work at your company – and for assistance with implementing and communicating salary information on your career website and elsewhere – contact Haley Marketing today. We can help with this and all the other aspects of your successful recruitment strategy.