Partners Perspective -Weiser Innovations November 2022

Stepping Forward into Transparency! 

In a bill that recently passed, New York City will now require employers to provide salary ranges on their job descriptions starting November 1, 2022. They join California, Colorado and other areas that are putting laws in place to eliminate pay gaps and bias in recruitment. Regardless of your location, pay transparency an important consideration to have in mind for the coming year and is quickly becoming a best practice in hiring.

In the past, salary ranges were often regarded as privileged information and talking salary amongst colleagues was frowned upon or even prohibited. Now in this tight, candidate driven market we’re currently facing more applicant demands. To attract and retain them, organizations must show they are invested in their employees and the contributions they make. 

Being transparent with candidates builds trust and saves time and money. By posting the salary range for the role within the job description, candidates can quickly ascertain if the position meets their salary requirements. It improves the candidate experience simply by eliminating the process of applying (which can be tedious) and interviewing (sometimes multiple rounds) only to discover the salary is too low. This also saves time in the organization’s recruiting process and ideally ensures offers are aligned with the candidate’s expectations.

Pay transparency gives employees the understanding of how their compensation fits within the organization. It can also establish clear expectations for raises and promotions. Showing how their work impacts the organization leads to a more empowered workforce that takes ownership of their positions and can lead to more unity in teams. This creates a more positive, engaged company culture, which leads to increased retention and higher application rates.

In addition to the advantages for candidates and employees, pay transparency is also advantageous for the organizations. From a finance perspective, it helps to clearly define the budget needed for each role. It is also a very actionable way to demonstrate a commitment to a diverse, equitable and inclusive culture. And, although it is not the law everywhere, if an organization is looking for a competitive advantage in hiring, pay transparency is a very strong way to achieve it.