Here's what new salary transparency laws mean for your job hunt

Summary

The U.S. labor market remains strong, but new salary transparency laws are prompting changes in hiring practices. These laws, which require employers to list salary ranges for job postings, promotions, and transfers, aim to help smaller businesses compete with larger firms. Eight states, including New York City, California, and Washington, have implemented such laws. Experts suggest that these laws empower job seekers to negotiate better compensation by asking targeted questions about salary structures, roles, and company benefits, potentially improving both employee attraction and retention.

Takeaways

• 😀 The U.S. labor market remains strong, but workers may soon look for new opportunities due to potential layoffs and new laws.
• 😀 A new paid disclosure law in New York City, effective November 1st, requires employers to list salary ranges in job ads, promotions, and transfers.
• 😀 Eight U.S. states have passed salary range transparency laws since 2018, with California and Washington state set to implement theirs on January 1st.
• 😀 These salary transparency laws may level the playing field, allowing small businesses to compete more easily with larger firms for top talent.
• 😀 Transparency in compensation allows companies of all sizes to access important market data that was previously only available to larger companies.
• 😀 Job applicants and current employees are encouraged to ask hiring managers about salary bands, benefits, perks, and other compensation details.
• 😀 Negotiation expert Alexander Carter suggests candidates ask about role requirements, salary structures, and qualifications for top salary bands.
• 😀 It's important for job candidates to ask how their role is valued within the salary band and what qualifications lead to higher pay within it.
• 😀 Experts suggest that these salary range transparency laws can encourage more open discussions about compensation during the hiring process.
• 😀 Business leaders should be prepared for tougher conversations as more transparency leads to more employee and candidate inquiries about compensation.

Q & A

What new law went into effect in New York City on November 1st?

A new paid disclosure law went into effect in New York City on November 1st, requiring employers to list salary ranges for posted job ads, promotions, or transfers.

How many states have passed salary range transparency laws since 2018?

Eight states have passed salary range transparency laws since 2018, including laws that will take effect in California and Washington State on January 1st.

How might salary range transparency laws help small businesses?

Experts say that these new laws may help small businesses compete with larger firms for top talent by providing more accessible compensation data.

What has been the traditional advantage of large companies regarding salary information?

Large companies have historically had access to external compensation market data, which has been a costly endeavor to obtain. With these new laws, this information is now more accessible to all companies.

What is one of the key benefits of salary transparency for job applicants and current employees?

Salary transparency allows job applicants and current employees to ask hiring managers about benefits, perks, and other types of compensation beyond the base salary.

What specific questions does negotiation expert Alexander Carter suggest job candidates ask during interviews?

Alexander Carter suggests job candidates ask questions like: 'What will be required of me in the role?', 'How are you valuing within that salary band?', and 'Tell me more about the position and how you came up with the pay structure.'

What is the purpose of asking how a company came up with its pay structure?

Asking how a company came up with its pay structure helps job candidates understand the criteria that place employees at the higher end of the salary range and ensures they are well-informed about the compensation process.

What impact do salary transparency laws have on negotiation power for employees?

Salary transparency laws empower employees to have more informed discussions during salary negotiations, as they can ask about specific compensation details, including benefits and bonuses.

Why might the salary transparency law be a significant change for hiring managers?

The salary transparency law may be a significant change for hiring managers as they will now be required to publicly list salary ranges, potentially affecting how they attract and retain talent, and prompting more open discussions about compensation.

What is one of the most important considerations for business leaders under these new transparency laws?

Experts say it is important for business leaders to be prepared for tough conversations about compensation, as the new laws will lead to more transparency and may raise expectations among job candidates and employees.