As many states and cities are enacting laws requiring employers to post pay ranges on job postings, employers not posting salary ranges may lose out on qualified candidates. In fact, 4 out of 5 workers say they’re unlikely to apply to a job that doesn’t provide a pay range on the posting.

According to the Society of Human Resources Management, the number of organizations including pay ranges in job postings has more than doubled since last year – from 22% that included salary ranges in posts in 2022 to 45% that currently include pay ranges.

So, what does this mean for the talent acquisition process?

One thing to consider is whether you’re posting the “starting pay” range or the full range. Whichever you choose, be sure to clarify the information accordingly.

By posting the pay range for a job, employers may find they waste less time screening applicants whose pay requirements are higher than the position warrants. The result could create a pool of more relevant talent with better candidates while also saving time.

Pay transparency laws are also forcing employers to consider what their current pay structure would mean to current employees, job seekers, and their competitors. Expanding pay disclosures will likely force employers to keep their current compensation structures in good working order. An internal pay equity analysis can show whether any differences in current pay structures make sense. If this analysis reveals problems such as current employees making less than their peers in the same job, the employer should investigate the reason. Is it the result of unfairness or because of other justifiable factors such as cost of living differences?

Need help establishing a compensation structure/program? Reach out to the team at TEG!

 

This information does not constitute legal advice.