On November 1, New York’s new law on greater pay transparency will take effect. As transparency requirements now vary across the United States, many companies are considering how to manage the changes at a city, state and nationwide level. The work requires defensible pay structures, sound performance management practices, clear career pathways, and transparent communication.
How we got here
Pay transparency is a step toward pay equity, addressing the gender pay gap, and identifying and tackling other systemic biases. Up to now, few corporations have provided comprehensive pay bands or salary information within job descriptions.
Today, pay shows up in just 25-30% of U.S. job listings on LinkedIn.
According to Glassdoor, employees want more transparency from their employers. 34% of employees say they feel a lack of clear, transparent communication in general. Meanwhile, 49% of companies say they don’t have a well-established pay equity plan, and 46% percent admit they have not been transparent with employees.
However, a wave of rules and pending legislation on pay transparency at the state level is changing the landscape for corporations across the United States.