Salary Range Transparency
Salary Range Transparency
A Comprehensive Guide
There's a shift occurring within the workforce, thanks to new legislation concerning pay transparency. With more states across the country embracing salary range disclosure requirements for employers, the likelihood of applicants receiving equal pay for equal work is greater than ever. This legislation prompts employers to be more transparent with prospective and current employees, by requiring them to share salary ranges in job postings.
Our Salary Range Transparency guide can help employers stay compliant within cities and states that have already enacted pay transparency laws. Even employers that don't have operations in these localities have much to gain by preparing for pay transparency. With more laws likely to surface, now is the time to lead the way in fair pay and establish your company as an equitable one.
Current Pay Transparency Legislation
California was the first state to roll out pay transparency legislation back in 2018. Since then, several other cities and states have passed their own pay transparency laws. Each with their own nuances and requirements. See the chart below to understand the growing pay transparency trend taking place across the country.
Scope and minor differences aside, each location's legislation shows one thing: advancements towards pay equity are happening now. Ground has officially been broken in many states and it's almost certain more states and leading organizations will follow.
Preparing for future pay transparency changes
Instead of waiting for the inevitable to happen, many organizations outside the mandated jurisdictions have taken action. This means more and more organizations are incorporating pay transparency for current and prospective employees into their hiring process. This can help establish organizations as forward-thinking and be attractive to prospective employees especially in the current competitive labor market.
Changing how you tackle pay discussions and disclosures may give your organization an edge. Instead of scrambling when pay transparency rules must be changed, why not set your organization apart ahead of time?
Considering all factors
Compliance can be tricky. If your company is not physically located in one of the previously mentioned locations, it doesn't necessarily mean transparency laws don't affect you. With more remote positions available, organizations are employing people from across the nation. This means that the location where your employees live determines whether your organization is bound to pay transparency requirements. This is why evaluating pay range for all current positions as well as addressing any discrepancies is crucial.
Utilizing PayParity® to ensure compliance
Achieving compliance is easy with the right tools. A pay equity audit can help your business identify any pay disparities that may be present in certain departments or specific job positions.
Pay equity software can help your organization comply with pay transparency laws. PayParity provides pay equity auditing and ongoing monitoring to identify pay disparities that may be present in the following demographics:
A pay equity audit can also prevent pay inequities from occurring in the future, which lessens legal risk. Pay transparency is beneficial not just to employees, but also to organizations. It helps streamline the hiring process, makes positions more appealing, and decreases the odds of declined job offers. It's also appealing to prospective employees, investors, as well as stakeholders.
What's more is that PayParity includes the Salary Range FinderTM -- the perfect tool for helping companies confidently share pay ranges in job postings, as required by several states and cities across the U.S.
The Salary Range Finder retrieves internal PayParity pay equity audit data and overlays it against external labor market data provided by industry-leader LightcastTM. The software solution then generates an equitable salary range for a desired job and the relevant geographical location.
Salary Range Finder is the perfect tool for helping Total Rewards, Compensation, HR, and Recruiting professionals ensure their job pay bands are fair and competitive, before publicly sharing them. The tool also helps to address the unintended consequence of wage compression.
To learn more about how PayParity and the Salary Range Finder can help you comply with pay transparency laws, schedule a meeting below.