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By AP Jan 11, 2023 7:23:30 PM IST (Published)
Pay transparency refers to the practice of making information about pay and compensation available to employees and job candidates. The aim of pay transparency is to level the playing field in salary negotiations by providing more information to employees and candidates about what they should expect to be paid. While it may not eliminate salary negotiation, it can encourage more open and transparent conversations about pay.
Knowing if you’re being paid fairly for the work you do is a mystery shrouded in a lack of information. That may be changing, though, and pay transparency may be the catalyst. It’s a growing trend for companies to reveal what a job opening or current position pays — whether voluntarily, or because governments mandate it.
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NAVIGATING SALARY RANGES
So far, about a dozen states and municipalities have mandated access to salary information, including California, Colorado, Washington and New York City. Companies in the jurisdictions are generally required to post salary ranges indicating the minimum and maximum pay. Rules vary: Sometimes only job applicants must be told, while other times current employees can also request information about their pay range.
Roberta Matuson, president of Matuson Consulting in Boston, consults with companies looking for top-tier talent. She believes pay transparency "is a step in the right direction." "Knowledge is power. So, you know, if you have no idea that you can possibly earn more money, then you wouldn’t even ask for it," Matuson says.