The salary transparency conversation has changed rapidly during the pandemic.
In light of increased conversations about the importance of diversity, equity and inclusion in hiring, what used to be optional is now considered a best practice.
Some places are even legally enforcing it. Under a new city law, all companies in New York City with at least four workers are now required to include salary ranges for job postings.
New York City is not the only place to require salary transparency–Colorado and Rhode Island also require some form of it. California and Washington State will implement similar rules in 2023.
Since New York City is one of the biggest job markets in the United States, I anticipate other states and cities will follow with similar laws in the years to come.
In light of these changes and the rapidly shifting conversation, I now encourage every one of my clients to include a salary range on their job postings. Here’s why:
3 Reasons You Need to Put a Salary Range on Job Postings
- It’s the best way to combat gender and racial pay gaps. When you see the salary range upfront, you know the same salary range is available to every candidate applying–which is especially important if you hold a marginalized identity.
- Transparency increases retention and morale. When employees don’t have to wonder if they are being underpaid or overpaid, they feel a sense of security.
- Fewer salary negotiations. When people have an idea of the range coming in, they are more likely to meet the employer where they’re at. That means less time is wasted for both the candidate and the hiring organization.
With any major transition, there are likely to be some bumps along the way. The biggest concern I’ve heard from clients is that salary transparency will mean people on their teams are going to realize they’re being underpaid.
And the reality is that many nonprofits do not have the funds or ability to increase everyone’s salary at once.
It’s a really tough dilemma and a bigger conversation. But luckily, there are steps you can take to improve team morale and ensure everyone on your team is paid equitably on a timeline that works for you.
Check out today’s freebie, A Nonprofit’s Guide to Salary Transparency, for some tangible tips to help you navigate widespread salary transparency at your organization.
And if you’re looking for more personalized guidance, send me a message at firstname.lastname@example.org. I’d love to help you think through a strategy that will work best for your organization!