Dear First name / community member,
We try to sketch out topics for our monthly newsletter based on what's happening in the world, questions we've received from clients and candidates, and issues we've been dealing with as a team. This month became a real challenge: pay transparency was the suggested topic. In a time with multiple layoffs, conversations about payroll from a budget standpoint, as well as from a performance standpoint, and job postings that require transparency seem like a lot to be focusing on right now. But the reality is that transparency around your budget often begins with salaries–staff, board, and community want to know how decisions are made and how salary impacts the organization.
Several recent job listings have listed a full salary range of the position and then stated the actual hiring range. Others have opted for external salary ranges for recruiting outside of Oregon, but not in Oregon. Most, if not all, job boards that we utilize require a salary range. So how do we at NPN balance all of these competing interests and feedback on pay transparency?
First,
we are upfront with clients and candidates about salary. We utilize
PayScale as a source for determining salary ranges if an organization hasn't conducted a full salary assessment of all positions. We talk to clients about their budget, the differential between front-line and director-level salaries, the expectations of knowledge and experience within a position description and how that attracts (or doesn't) candidates.
This research generally brings in a salary range that is consistent with the organization's other positions and places them within a marketplace of candidates for recruiting. Our research shows that candidates are looking for a 10-20% increase in salary and/or benefits to make a move. If you are advertising a $60,000 salary, then you are attracting candidates currently earning $51,000 per year. Once you understand that, you will have a greater understanding of the skills and experience they are bringing to this position.
Second, Oregon as in many states does not allow anyone to ask a candidate about their previous salaries. This doesn't mean you can't ask if the current advertised salary is acceptable, are they aware of salary ranges, does the advertised salary meet their needs, etc. But, the job description and the salary set should be based on the requirements of the position in this current marketplace. Whatever a candidate made prior to this position is irrelevant.
Third, if an organization is struggling to meet a pay range for a position due to budget constraints , then there may be further conversations needed outside of this particular role. Work may need to be done differently–part-time/fractional, contracted out for strategy and implemented internally with a different job description, partnering with another organization or recruiting volunteers. The time has passed where people can afford to receive a salary below the cost of living in an area and still sustain the organization's values.
This third point is where we are now–the world is changing, funding is changing and the unknown is the standard status of the day. So, how do we hire for what we need and understand that our budget is in flux? A couple of ideas:
- Don't hide the budget concerns – be upfront with candidates.
- Consider hiring locally. As much as I appreciate candidates from other locales moving into the area, the risk may be too high right now.
- Promote internally. You have a good team–talk to them, strategize and improvise. This does not mean piling more work to an exhausted staff – some things will just not get done and everyone needs to know that.
- Bring in temporary support. 10-20 hours per week may relieve enough pressure to support internal teams.
This may all change very soon with a new bill in the Oregon legislature (
HB2746) requiring pay transparency in job postings for all businesses and that organizations maintain pay records for all employees. The transparency language will bring consistency with
California and
Washington laws, but the tracking of pay and requirement for inclusion of all business sizes is new language.
