Salary is still a big motivator for attracting talent. In fact, LinkedIn found that salary range and benefits were by far the most helpful aspect in determining if a candidate would apply for an open position. While these stats show what candidates want, many companies omit that information from job postings as a way to try and attract talent past the first step in the hiring process. But with new pay transparency laws being adopted across the United States, that’s all about to change.
Starting in November 2022, New York City businesses will be required to post the maximum and minimum salary for a role, and they’re not the only place that’s adopting this new legislation. We know that changes to the law like this one could upset your current recruitment strategy. In order to help you prepare, we’re diving into the specifics of the new pay transparency laws and how you can adapt your strategy to maintain compliance.
A pay transparency law requires companies in specific states to post the minimum and maximum payments for open positions for both annual salary and hourly wage. It falls under Executive Order 11246 through the US Department of Labor. This order prohibits companies from denying equal pay based on discrimination against race, color, religion, sex, sexual orientation, gender identity or national origin.
Lawmakers hope that this law will help minimize the wage gap. Currently, the uncontrolled gender pay gap is $0.82 for women compared to the $1 made by a man. This number hasn’t improved since 2021, and enacting pay transparency laws could help expose corporate gender bias and take a step toward equal pay for both men and women.
Not every state has adopted a pay transparency law, but some predict that will soon change. New York City is late to the party when it comes to enacting this law. Some of the states that already have transparency laws in place include:
As additional states join the list, organizations need to be prepared. HR and TA professionals are ultimately the ones affected most in the day to day because of this law. While the question if these laws will affect the postings for remote positions’ is not certain, it’s sure that elements of a recruitment strategy will have to change in order to maintain compliance. Be sure to check your individual state’s laws to ensure your team is operating in compliance.
To prepare your recruitment strategy for pay transparency laws, you need to rethink how you’re highlighting information in your job postings. If you were leaving the mystery of the salary range up to a future candidate’s inquiry, that may hinder you more than help you attract talent. If you can’t pay top dollar for a position, try highlighting these elements of the job in your talent acquisition strategy to entice candidates:
While salary is a large part of attracting a candidate to a job, it isn’t the only factor. Tap into the elements of the position and your company that could sway a candidate your way even if your competition can offer more.
Pay transparency laws are quickly becoming the norm. With this change comes the opportunity to revamp your recruitment strategy. By basing your open positions on what you can give the candidate that the competition can’t, you’re more likely to attract loyal candidates who will stick with your company for the long run.