How will the new NYC salary transparency law impact you?

The pros and cons of salary transparency on job descriptions

New York City's Wage Transparency Law takes effect November 2022. It will require businesses to include a salary range in all job advertisements. Whether the role is work from home or the individual lives outside of the city is irrelevant.

Should it then be mandatory for all organisations to display salaries or salary ranges on job descriptions?Let-s consider the facts.

THE GREAT DEBATE

In 2020, barely more than one in ten (12.6%)-of global companies published the pay range for a role within their job adverts. However, in this candidate led market, employer branding, trust and loyalty are paramount.-Perhaps it's-time to have a rethink about salary transparency?

The reverberations of a global pandemic became the backdrop to employees the world over quitting their jobs en masse in 2021. The Great Resignation had begun, and hot on its heels was a terrifyingcost-of-living crisis, plunging much of the world into economic distress, the likes of which most countries have not experienced for decades.

It should come as no surprise then to learn that candidates now view salary as the most important factor when looking for a new role. A whopping-81.6%-of people in fact, according to CV-Library.. But if that-s the case, why aren-t more organisations-offering full pay transparency already?

THE SCALES OF BALANCE

Scroll through any number of job listings on LinkedIn and you-ll find that common phrase:-competitive salary-. And on the other side of the screen, you-ll find a candidate, who-s interest had momentarily been piqued, arguing that if the salary wasthatcompetitive, it would be readily available to view.

And so, the conundrum continues. Naturally, there are pros and cons of salary transparency, and it can feel like walking a tightrope trying to navigate the quandary.

ADVANTAGES TO JOB DESCRIPTION SALARY TRANSPARENCY

Closing gender, disability and ethnicity pay gaps

Globally, it-s estimated that women receive-16% less salary than their male counterparts.-However, this varies significantly and can be far greater in some areas. Salary transparency works towards creating a more even playing field for those who are disadvantaged by pay gaps.

Attract a wider, more diverse talent pool

When candidates can pick and choose which organisations they work for, ensuring that the numbers work in your favour is wise. By showing a salary range on your job descriptions, you could be attracting up to43% more candidates. This one simple act could help your Talent Acquisition team find who is right for your business faster, with much greater success rates.

Exemplary employer branding

Authentic employer branding doesn-t just happen. Itrequires an excellent employee experience, and that begins with the candidate journey. Those who are transparent about their salary offeringsreport increased productivity. It builds trust between employees and employers. In turn, this leads to a positive company culture, increased employee engagement, and lower rates of attrition.

THE DOWNSIDE

If salary transparency is so beneficial to an organisation, why are many still reluctant to readily reveal the information? There are a few reasons often cited by employers.

Small businesses often think they can-t compete against the-giants if salary is all a candidate is basing their search on. Others believe that employees knowing-each other-s-salaries can cause resentment and discontent.-Harvard Business Review-reported that salary transparency could encourage dissatisfaction and turnover if employees were paid below the median range.

While there is also the argument that suggests you are at risk of alienating candidates that you would be prepared to pay more than the stated salary range for, as they skip over your ad for a higher salary band.

AVOIDING THE PITFALLS

Having spent years concealing salaries on job ads, exposing that information can understandably leave you feeling vulnerable. Yet, the conviction to do so could have a hugely positive impact to your business.

First impressions count. By posting a new role, you automatically offer an insight into the culture of the company. The candidate experience begins at this point, and you have one chance to attract their attention.

Volunteering salary information on a job description is conducive to a smoother, more streamlined hiring process. Your Talent Acquisition teamdon-t have to spend time nurturing candidates whoaren-t looking for a salary withinthe stated range. Again, leading to a better candidate experience.

Embrace a holistic hiring process. Allow candidates to get a sense of your purpose and how that aligns to their own values. Create a well-rounded employee experience with highly engaged talent.

Your hiring manager and TA teams have a challenging role. Many are using outdated methods to fill positionsthat aren-t yielding the desired results.Ensure they are well equipped and well trained to handle your hiring needs in this new world.