Coined as “The Great Resignation,” millions of Americans are voluntarily quitting their jobs. In such a tight labor market, employers should do everything they can to encourage candidates to fill openings. As the fight for top talent becomes more intense than ever, remuneration is the most tangible method for a workplace to indicate how much it values its employees, and failing to include a salary on a job posting puts off potential employees.
Take, for example, a candidate who goes through the application and interview process, just to find out that the salary is well below what their current or previous position paid. This is both a waste of time for the candidate and the employer. This would not have happened if the organization had been upfront about the salary from the beginning of the search process. Additionally, job seekers use tools such as 990 tax forms, and sites like PayScale and Glassdoor, which have gotten more precise and specialized in recent years. Candidates or potential candidates know how much they’re worth and are becoming more empowered to avoid companies that aren’t forthright about pay.
Recently, the New York City Council passed a new law that will require employers to include a salary range in their advertised job opportunities following states like California and Colorado. Salary transparency serves to uncover wage disparities between otherwise similar workers, motivating underpaid workers to renegotiate or shift to better-fitting employment, and thereby boosting labor market efficiency. Organizations can tackle discriminatory and inequitable employment methods by being upfront about compensation.
Implicit bias based on race and gender is frequently an impediment to workplace diversity. The disclosure of compensation evens the playing field in negotiations and assists applicants and workers in detecting and correcting any unreasonable pay differences. Companies should also practice pay range transparency to regularly assess and evaluate their remuneration practices, as well as resolve any unjustifiable inequalities between employees.
Furthermore, employees are more motivated, productive, and collaborative when they feel valued and adequately compensated. Workplaces that actively work towards ensuring employee satisfaction also report longer tenures and less turnover. Though pay transparency is the tip of the iceberg when it comes to promoting a healthy and top-notch work culture, it is the first step to ensure your organization’s fighting chance when it comes to attracting and retaining top talent.