Have you ever interviewed for the perfect job and had it go really well, and then received an offer…that’s too low and you just couldn’t accept it? 😢
Good news: there’s a bit of momentum now for states and cities to set up pay transparency laws. This means that ads for jobs will clearly show a salary range to applicants before they apply. But is this good for everyone, and is it really as simple as it sounds?
Here are Five Fast Facts on pay transparency:
- ⚖️ Level The Field - One of the biggest benefits is that it helps eliminate pay differences between gender, race, and other demographic splits. It also helps current workers know if they are being paid fairly compared to new hires. Kind of important!
- 😕 🤔 Just The Beginning - One of the biggest problems is that pay transparency is only starting to catch on. Many places don’t have it yet, and even the ones that do are inconsistent. So, employers have to figure out a strange jumble of laws and regulations depending on where they live and how many employees they have. We get it, this can be tricky. But isn’t it worth the effort?
- 👍 Yes, Please! In recent surveys, most job seekers (67%) agree with pay transparency. Almost a quarter (22%) think it should be the highest priority of job postings! About a third won’t even go to an interview without knowing the pay range. To job seekers, this is easier than a Capital One commercial!
- ✔️ Where Is It Happening? Colorado was the first state to officially make a law requiring pay transparency in 2019, but several other states (California, Maryland, Nevada, Rhode Island, Connecticut, and Washington) have since done it, too. Some cities (like Cincinnati, OH) have done it even if their state hasn’t. #trendsetters
- 🚫 No History - Some companies will ask an applicant for their salary history. You don’t have to give it. In fact, some places have laws preventing employers from even asking the question! This helps ensure people are paid what the job is actually worth. Seems like a good plan to us!
🔥Bottom line: Pay transparency means people have a better shot at getting a better Paycheck or, at the very least, they won’t waste time on jobs that wouldn’t be a good fit, which is super valuable. The more this catches on, the more pressure it’ll add to other places that don’t have it yet. It’ll seem like the company has something to hide, even if they’re not legally required to share the pay range. It’s better for the applicant, and it saves everyone time and energy in the end. With the increased competition this might bring, other intangible factors will also come into play: benefits like quality of life, work/life balance, working remotely, and so on. Any way you slice it, it’s a win!
What do you think about pay transparency?
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