salary transparency developments
Image Source: UCLA Anderson Review
Written By: Abdullah Al-Ejel
Since the pandemic's start, emphasis on labor and wage equality has only grown stronger, and recent developments in salary transparency have emerged.
On November 1, 2022, New York City will start requiring businesses with 4 or more employees to list their minimum and maximum salary ranges on job postings. Similarly, California will set this requirement on businesses with 15 or more employees starting January 1, 2023 (CNN). This news comes after states including Connecticut, Colorado, and Maryland enacted similar laws over the last few years.
This is a huge milestone not only for New Yorkers and Californians but for the entire nation. A major focal point of wage equality is transparency on salaries offered to new hires and how they compare to current employee compensation. If you are hired at a business with the same education and experience as another employee, the common expectation would be to start at the same salary that they did or at market expectation. However, some employers may lowball offers, and since it’s the social norm to not disclose your salary to coworkers or negotiate until after acceptance, it’s still not absolutely clear whether you’re getting a fair share or not.
There are benefits and drawbacks to discussing compensation with coworkers, but approval of doing so is high, especially among Gen Z and millennials. With this positive shift in attitude and states implementing legal standards, there is certainly growth in salary transparency and hope for law implementation at the federal level.
At the end of the day, increasing salary transparency is an immense benefit for both parties, helping to avoid any time waste in applying and interviewing if the salary is initially not of interest. Additionally, this can improve a business’s awareness of competing salaries and expectations from applicants, making the optimal salary range more apparent.
A world of increased communication and honesty is better for everyone