Whether you are being paid fairly for the work you do is a mystery shrouded in a lack of information. However, that may be changing, and pay transparency may be the catalyst. It is a growing trend for companies to disclose what a vacancy or current position pays, either voluntarily or because governments require it.
NAVIGATION BY SALARY RANGES
So far, about a dozen states and municipalities have mandated access to wage information, including California, Colorado, Washington and New York City. Companies in jurisdictions are generally required to post salary ranges indicating the minimum and maximum pay. The rules vary: sometimes only job applicants must be informed, while other times current employees can also request information about their pay range.
Roberta Matuson, president of Matuson Consulting in Boston, advises companies looking for top-tier talent. She believes that salary transparency “is a step in the right direction.”
People are also reading…
“Knowledge is power. So, you know, if you have no idea that you could possibly make more money, then you wouldn’t even ask for it,” says Matuson.
IS THIS THE END OF THE SALARY NEGOTIATION?
Pay transparency won’t eliminate wage bargaining, says Lexi Clarke, vice president of people at Payscale, a national provider of data and compensation services. Instead, Ella Clarke says she will encourage discussions about current and future salary expectations.
It will help employees and candidates “understand what their expectations should be, and where the limits are (salaries) and where there might be flexibility. It levels the playing field between employers and candidates to have a more open and transparent conversation,” he says.
And Lulu Seikaly, senior corporate attorney at Payscale, notes that as current laws stand, employers are not precluded from offering pay above the published range for a position, as long as the company can provide objective reasoning for the exception.
In the past, companies often based salary offers on what a person earned at their previous jobs, Seikaly says. “Many states have now banned it.”
If a potential employer asks about your salary history, Matuson says, “I wouldn’t balk at answering; I’d say, ‘Okay, tell me what you’re offering for this position.'” He would just turn the question around.”
WILL THE PAY GAPS BE CLOSED?
Pay transparency reveals salary ranges, but does it reduce gender and ethnic pay gaps? It may be too soon to tell.
However, Payscale’s Clarke says organizations that are more open about pay often have a well-defined compensation structure and are less likely to have pay inequities.
She predicts how the gender pay gap could be narrowed: “Women’s wages will rise to where they should be; some overpaid men’s wages may drop slightly, to be more in line with where they should be.”
Read the full story and more of this week’s top financial news:
The rise in consumer prices in the United States moderated again last month, reinforcing hopes that inflation’s grip on the economy will continue to ease this year.
Chances are your “buy now, pay later” bill for the holiday season is coming soon or has already made its debut. If you’re not financially prepared to pay, late fees or other fees can put you further into debt. Circumstances can change in a matter of weeks due to financial setbacks such as unemployment, an unexpected…
You are probably familiar with the most obvious ways that inflation affects your finances. His money doesn’t go that far at the grocery store, for example. But other ways that inflation helps or hurts have received less attention.
Since the start of the COVID-19 pandemic, small business owners have been faced with ever-changing regulations, tight cash flow, and general economic uncertainty. And 2022 brought its own challenges: inflation, rising interest rates, and staff shortages, among others. However, businessmen remain resilient and optimistic about the coming year. In fact, 66% of small business owners expect their revenue to increase…
You know how you book a room that is initially advertised for under $100 a night and then suddenly skyrockets to over $150? That’s partly due to taxes, but another big part is likely due to resort fees. Some hotels have more offensive resort fees than others and while resort fees tend to run…
While setting boundaries around money can sometimes be a daunting task, doing so can help put you on the path to financial wellness. If you’re having a hard time setting (and sticking to) financial limits, there’s no better time than the start of a new year to get into the habit. What are the financial limits? “The limits of money are limits that…
With a new year ahead and the holiday fanfare behind it, this is a good time to set money goals, especially if you’ve recently spent a lot on gifts and travel and want to get your finances in shape. Right now, you may be highly motivated to solve each and every one of your money problems in…
Between inflation driving up the cost of living and interest rates rising in response, 2022 was a costly year. Talk of a recession continues, so 2023 may bring its own financial challenges. And consumers are worried: NerdWallet’s annual household debt study found that nearly 7 in 10 Americans (69%) have financial worries about the…
🎧 Hosts discuss why 88% of Americans think cheating on their taxes is unacceptable, while only 44% say it’s their responsibility to report criminal behavior to the IRS.