It is difficult to know if your work is being compensated fairly. Pay transparency could be the key to changing this. Companies are increasingly required to disclose the current salary of a job or opening in their workforce.
About a dozen states, including New York City, Colorado, Washington, and Washington, have already mandated access to salary information. The jurisdictions require companies to publish salary ranges that indicate the minimum and maximum salaries. There are many rules: Not only must job applicants be informed, but current employees may also request information regarding their pay range.
Roberta Matuson is president of Matuson Consulting, a Boston-based firm that helps companies find top talent. She believes that pay transparency is a positive step. ”
“Knowledge is power.” Matuson states that knowledge is power.
Does this mean that salary negotiations are over?
Pay transparency will not eliminate salary negotiation, according to Lexi Clarke (vice president of people, Payscale), a national provider for compensation data and services. Clarke claims that it will encourage discussion about current and future expectations regarding pay.
It will allow employees and candidates to “understand their expectations and determine where [salary] limits are and where there may be flexibility.” She says it helps employers and candidates have a more open, transparent conversation.
Lulu Seikaly is a senior corporate lawyer with Payscale. She notes that, under current laws, employers can offer pay that is higher than the range posted for a job, provided that the employer can give objective reasons for the exception.
Seikaly states that in the past, salary offers were often based on previous work experience. “Many states have now banned this practice. ”
Matuson replies that he would not refuse to give salary information if a potential employer asked. He would simply say, “Well, tell me about the position you are offering.” ”
Will there be any pay gaps?
Pay transparency shows salary ranges but it does not narrow the gender and ethnic pay gaps. It’s possible it is too early to know.
Payscale’s Clarke said that organizations that are more transparent about their salaries are likely to have a clearly defined compensation structure and less pay inequalities.
She predicts that the gender pay gap will narrow. “Women’s wages will rise to where they are supposed to be. Some men may be overpaid, so their salaries might slightly drop. ”
What happens if you are at the bottom of the range?
When you discover that you are at the bottom of a salary range, Clarke suggests pay transparency to help you communicate with your employer about what you believe you should be getting.
Matuson suggests asking your employer to raise your pay and to offer you promotions.
She adds that it’s more than money.
Matuson states that there are many other things you can ask for. You could, for example, say that it would be beneficial if you could work at home two days per week, so I don’t spend $50 on gas every week. Is that possible? ‘”
If you are at the top of your pay scale,
What happens if you discover that you are at the top pay band for your job? Pay compression could occur at the top of the pay scale with highest-paid workers being more resistant to salary increases. Do you feel like you are at the top of your pay scale and could be one of the first to be laid off if there is a layoff?
Matuson states, “Well, I think that you should always be thinking about ‘I might get cut.'” She also said that even if your job is not in the immediate future, it’s worth calling a few headhunters for information about pay scales and possible opportunities.
Many websites have tools that will help you determine the right salary range for you. For such tools, check out Salary.com, Indeed, Glassdoor, and Payscale.
This article was written and published originally by The Associated Press by NerdWallet.