HR WATER COOLER: Depending on how long you’ve been with us, you might remember that we initially covered salary transparency in August 2022. Back then, Colorado was the leader in rolling out legislation requiring employers to disclose salary ranges upfront. New York’s own policies went live in November and, with the start of this year, three more states – California, Washington and Rhode Island – saw similar laws go into effect.
If 2023 is the year of the employee, salary transparency could only mean good things, right?
Per
Fast Company, a study by advisory firm WTW found
31% of employers saying they aren’t ready to comply with the laws and 46% admitting to putting off doing so, fearing possible fallout from current employees.
And we get it...kind of. Not only is HR understaffed and overwhelmed to make all these updates to existing JDs, but in many cases money is tight. Increasing salaries across the board, for roles that were initially signed on below market, is most likely a CFO’s nightmare.
That said, transparency will be the new normal. Not only has NYC rolled out its own policy (outside of New York State’s) but Massachusetts and South Carolina are adopting identical legislation later this year.
Businesses that are unwilling to be upfront about salary ranges risk losing access to top talent. Even with an influx of layoffs and a somewhat unstable financial market, employees are not scared of seeking out
greener pastures.
But friends, pay transparency doesn’t have to be scary. We found
a step-by-step guide to walk you through prepping your organization for this new way of working.
Because, you know, new year new you.
