Honesty is the best policy! Well, maybe not when you're trying to hide those Amazon boxes from the hubs…🫢📦
Pay transparency is when an employer publicly shares details about employee compensation, usually in a job posting. 🧑💻 Since we last reported on pay transparency laws, more states have officially joined the party (can we call it a party??) 🥳
Are these laws a good idea? We'll let you be the judge. 🧑⚖️
Here’s Five Fast Facts on pay transparency and your paycheck:
- 🎉 Party Time, Excellent? - States all over the nation are jumping on the pay transparency law bandwagon. New York City’s pay transparency law was put into place in November. Washington, California, and Rhode Island followed suit earlier this year, and Colorado led the charge back in 2021.
- 🤑 Payday, Baby - Because of pay transparency laws, US job postings that include salary ranges have more than doubled since 2020. On Indeed.com, almost 44% of all US-based job postings contained salary ranges. That's up from almost 15% in February of 2020.
- 🍨 The Inside Scoop - Supporters of pay transparency laws say the laws are helpful and important to women and employees of color. Some marginalized groups might not have the same professional connections as others or know what kind of salary they're actually entitled to.
- 🤬 Totally Unfair - On the other hand, many businesses think pay transparency is a recipe for disaster. Labor shortages due to the pandemic have inflated salaries, so companies now have to advertise higher wages to get talent in the door. Small and mid-sized businesses might lose out to larger companies who pay more and miss the chance to lure employees in with other perks.
- 💰 What About Me? - Pay transparency laws also impact a company's current workforce. Once existing employees learn that new hires are being offered more pay than they are for the same job, they might jump ship or start quiet quitting (AKA doing the bare minimum).
🔥Bottom line: If you're a job seeker, pay transparency laws can help you choose the highest paying jobs in your field. However, if you're on the employer side of the fence, you might have a tougher battle in the war for top talent. Keep in mind that salary is just one piece of the job search puzzle. Don't forget to take all perks into account, like benefits, retirement accounts, etc. Also, make sure you sniff a company out for horrible bosses and red flags before you sign that offer letter!
Are there pay transparency laws in your state?
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