We started this month with a bold statement that 2023 is the year of salary range transparency, and in just a few weeks, big changes are happening around the world. More cities and states will begin to explore disclosing salary ranges in job openings to reduce pay inequity. Keep an eye out for more developments to come!
Rising pay transparency laws in Europe and North America
Hot off the press, the European Union’s Parliament gave their final approval to the pay transparency directive, with important consequences for employers and employees. Among the new rules, employers will be held accountable for pay transparency prior to employment and regarding pay level and career progression. Pay secrecy will be banned as workers claim their rights to equal pay.
Days leading up to this directive, Ireland was considering broadening the scope of rules to a wider range of employers and lower thresholds to address gender pay gaps.
In the United States, the growing move towards mandatory pay range disclosure continues to make waves. New Jersey and Illinois are weighing regulations for pay disclosure in job postings, following the footsteps of Colorado, California, Washington and more in recent months. New York City is looking to expand its existing pay transparency law to include non-salary compensation, while the state of New York is already amending its law which will come into effect this September.
In British Columbia, the requirement for employers to publicise pay bands in job ads is set to stagger from 2023 till 2026, allowing employers time to prepare.
Positive impact on employers and job seekers
With the push from pay disclosure laws, the impact of pay range transparency is felt stronger than ever.
A research by the Society for Human Resource Management for Equal Pay Day this year reveals employers are reaping results from providing salary ranges in job postings. Applicant quality and quantity have increased, as companies can better attract talents with transparency. For candidates, seeing salary ranges in job ads make them more likely to consider applying, and trust employers that disclose pay ranges.
On a wider scale, employer compliance for salary range transparency is up across the board even in jurisdictions with no related requirements currently. Almost half of all US job postings on Indeed now include salary information, up from 18 per cent three years ago.
We are expecting this number to continue growing as more jurisdictions contemplate legislation. Employers are also taking the initiative to adopt salary range transparency for other offices, and candidates are expecting upfront salary bands as a norm.
Will Asia adopt pay range disclosure in job openings anytime soon?