Pay transparency laws have been popping up across the country, with Washington and California up next on January 1st. At a basic level, these laws require employers to be open and honest about the wages they pay their employees. For the talent acquisition industry, these laws can help us attract top talent by demonstrating our commitment to creating fair and equitable workplaces.
At a deeper level, pay transparency laws seek to demolish unfair pay practices, including racial and gender pay gaps. They serve as an incentive for employers to ensure that their pay scales are fair and equitable, and to actively eliminate discrepancies that may exist.
According to our friends at Recruitonomics, pay transparency also cuts recruiting costs. “Across states and industries, including pay in a job title grabs the attention of those looking for jobs and reduces recruiting costs for employers.” Their research clearly indicates that job seekers are more inclined to seek out positions that include salary information.
When it comes to an organization’s existing employees, pay transparency is equally prudent. As employees continue to seek outside opportunities, often offering higher salaries, it’s important for managers to proactively connect with their team about pay. World at Work suggests that employers should start “conversations with employees explaining their pay range, where they sit in that range and why, and then career pathing for how they can move up in a range.”
Stay on the pulse of this topic at CXR’s Transparency in Recruiting hub.#Diversity