New legislation seeks to guide US employers to ​more equitable hiring practices.

• Salary Required in Job Advertisements: Some ​states now require companies to disclose salary ​ranges and, in some cases, additional ​compensation details like bonuses and benefits in ​their job advertisements.
  

• Applicant Requested Salary Disclosure: ​Although some states do not require the salary ​range on the job ad, they may mandate its release ​at an applicant’s request.
  

• Salary History Bans: Salary history inquiries are ​no longer legal in some states, including those ​uncovered during third-party discovery efforts that ​may influence salary negotiations.
  

Why is it important?

Today, the emphasis on pay transparency is stronger ​than ever, driven by a combination of legal mandates ​and the growing demand for equity and fairness. The ​new regulations sweeping the country are shifting the ​recruiting landscape so rapidly that an estimated 1 in 3 ​workers will be impacted by pay transparency laws by ​2025.*

Companies need to monitor pay transparency laws – in ​all the states they hire – to understand what compliance ​means for them. To that end, many are adopting internal ​policies to comply and protect themselves from legal ​ramifications.

Openly sharing information about compensation ​structures and individual salaries within an organization ​aims to reduce wage disparities and foster trust among ​current and prospective employees.

Benefits of Pay Transparency

for Candidates & Employers

• Attracts more talent by demonstrating a commitment ​to equality and fairness – positively impacting your ​employer brand.

• Promotes fair compensation practices while crucial ​in setting clear expectations between management ​and employees, ultimately, closing wage gaps.

• Wins over candidates and employers – 82% of US ​workers are more likely to apply when salary is listed ​on the job ad, and 66% of employers report an ​increase in applicant quality.*

• Employees who understand their pay structures are ​generally more satisfied and motivated.

• Transparent pay practices contribute to a more ​inclusive and equitable workplace culture, reducing ​turnover and enhancing overall morale.
  

Pay transparency continues to reshape the modern ​workplace in many forms, depending on the city and ​state in which you hire. Each one is developing their ​own legislation with unique regulations, conditions, and ​enforcement strategies.

For example, New York City now requires employers ​with at least four employees to provide a pay range on ​all job advertisements – including those for internal ​promotions and transfers. Other states may not require ​a salary range on the job ad but will mandate disclosure ​at the applicant’s request. And it’s important to note that ​there are penalties for nondisclosure.

The impact of pay transparency extends beyond ​individual organizations, influencing the broader job ​market and societal norms. The important takeaway – ​it's making a difference.

• To stay ahead of the pack, some companies ​voluntarily follow suit in states where it’s not even ​mandated. They’re seeing salary disclosure as a way ​to remain competitive and compliant if and when ​they’re hit with new salary transparency laws.
  

• Candidates can determine if the salary range aligns ​with their expectations before applying, and ​employers are able to focus their time on an applicant ​pool that would accept it.
  

• The stigma of salary discussions may become a thing ​of the past. Both sides save valuable time during the ​negotiation stage when salary ranges are made ​public from the start.
  

• Employees are seeing opportunities to level the ​playing field as salary transparency efforts bring wage ​gaps into focus, prompting discussions on ​compensation and raises.
  

• Organizations practicing pay transparency report a ​significant decrease in gender and racial wage ​disparities.
  

• Employers will enjoy long-term benefits in terms of ​employee trust and engagement and enhanced ​reputation as fair and equitable companies.
  

These updates reflect the ongoing evolution and ​significance of pay transparency in the modern ​workplace, highlighting the growing emphasis on fairness ​and equity this year and in the years to come.

How can employers support pay ​transparency and applicants?

• Stay informed about new pay transparency ​legislation that could impact your recruiting ​practices, and direct any questions to your ​legal counsel to maintain compliance.
  

• Perform regular audits of compensation data ​to ensure fairness.
  

• Provide transparent communication of ​compensation policies to all employees.
  

• Require management training on your ​company’s implementation of pay ​transparency initiatives and the importance ​of complying with the law.
  

A recent Monster poll reveals significant insights into the current ​state of pay transparency and its reception among employees

and employers.

• General Sentiment:
  
• A substantial majority (75%) of employees favor increased pay ​transparency, believing it leads to fairer compensation practices.
  
• Employers are also showing a positive shift, with 60% ​acknowledging the benefits of transparent pay structures for ​attracting and retaining talent.
  

• Demographic Differences:
  
• Younger workers (ages 18-34) are the strongest proponents of ​pay transparency, with 85% supporting it.
  
• Gender differences remain notable, with women more likely to ​support transparency as a means to address pay inequities.
  

• Impact on Job Satisfaction and Retention:
  
• Transparent pay practices are linked to higher job satisfaction. ​Employees who feel informed about their pay are more likely to ​stay with their current employer.
  
• Organizations practicing pay transparency report a 20% ​reduction in turnover rates compared to those that do not.
  

Worker Insights

• Unanimous: Nearly all workers (98%) believe employers should disclose salary ranges in their job postings, and more than half (53%) would refuse to apply for a job that does not disclose the salary range.
  

• 61% of workers say salary is their top consideration when looking for a new job, but the other 39% of workers consider factors like work-life balance (16%) and benefits and perks (7%) first.
  

• Surprisingly, only 3% of workers consider hours and 6% consider responsibilities first.
  

• Optimistic: Most workers are optimistic about how salary disclosure laws will impact the future of work.
  

• The majority (53%) believe it will lead to salary equity and smaller or no pay gaps, 43% think it will lead to overall higher wages for all workers, and 42% are hopeful that it will bring higher worker productivity and satisfaction.

• On the other hand, about one in five (22%) workers worry that salary disclosure laws will lead to tension between colleagues due to unequal pay and 18% believe that it will bring more pay discrimination lawsuits against employers.
  

Worker Insights (continued)

• Opportunistic: If workers see a job posting for their role or a similar one from their employer with higher pay, almost half (40%) would use that as leverage to get a raise at their current job and only 3% of workers would quit.
  

• If an employer violates salary disclosure laws, more than three out of four (77%) workers would consider reporting them to the authorities.
  

Salary Transparency

Mandate Map

Check out the ​interactive map from ​GovDocs. Hover over ​each state for ​additional details.

• For more information, ​please visit GovDocs' ​Pay Transparency ​Guide and Pay ​Transparency Laws ​by State.
  

Salary History

Ban Map

Source: AcuSourceHR ​and Resource Center

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