People are calling 2023 the year of pay transparency. From the Senate floor to social media, people are demanding more open conversations about salary as a part of an equitable workplace. 14 states have enacted different types of laws requiring pay transparency in job ads and new legislation continues to pass in 2022, such as this finalized bill in California. It’s no surprise many employers are realizing this trend is here to stay.
Here’s what we’ll cover:
- What you need to know about this emerging trend
- How to decide what level of pay transparency is right for you
- The ways you can leverage salary data to benefit your business
What do you need to know about salary transparency
If you aren’t used to putting salary in your job ad — this can be stressful. Here’s what you need to know.
Pay transparency is a spectrum and you get to decide where your business falls along that spectrum. According to Payscale, there are 5 levels to pay transparency:
|Level 1||Level 2||Level 3||Level 4||Level 5|
|“Here is what you get paid.”||“Here is how we use market data to determine pay.”||“Here is where your pay falls and where you can go.”||“Here’s why you’re paid this way.”||“Here is everything you want to know about everyone’s pay.”|
|Your paycheck||Data market study||Pay ranges||Internal salary data||Public salary data|
How to leverage salary data to benefit your business
How you talk about salary data helps you attract new talent and retain the top talent you already have.
|Attract Talent||Retain Talent|
|Clarity for jobseekers. According to CNN Business. Knowing salary information saves time for job seekers looking for a change.||Motivate employees. Team members who can see upper management’s salaries use it as motivation to do great work and move up.|
|See more applicants. Heat map research from LinkedIn and Glassdoor survey data agree that salary info is the most important part of the job ad.||See more productivity. In this study by Emiliano Huet-Vaughn, salary transparency improved employee productivity by 10%.|
|Create a culture where people want to work. Pay transparency fosters increased trust, better workplace relationships, and stronger employee loyalty.||Create a culture where people want to stay. According to Payscale’s Fair Pay Impact Report, companies with low or no transparency were 183% more likely to leave.|
Feel confident about pay transparency with WizeHire & Payscale
Deciding what level of pay transparency is right for your business or even what to pay employees can be a real challenge.
That’s why we’ve partnered with Payscale.
“Today’s talent market is more dynamic than ever, and organizations are needing to pay competitively to attract and retain talent,” says Sarah Kalogerakis, Chief Data Officer at Payscale. “Payscale’s Employee Reported data, the world’s largest salary database, captures data directly from consumers to keep a pulse on market happenings.”
We’re able to leverage Payscale’s powerful data to provide you with the most accurate and up-to-date compensation information available. When you create a job ad, we give you compensation advice based on your job title and location, so you have the insights and confidence to make informed decisions about salary ranges.
WizeHire is a strong supporter of salary transparency. It allows job seekers to easily search for their ideal job and increases employee morale, productivity, and longevity. With our Payscale partnership, you’ll have one more tool to help you stay competitive in a tough labor market.