Q. "What is pay transparency and why does it matter?"

Answer:

The goal of pay transparency is:

• To reduce the gap in gender and racial pay difference

• Create equity in pay

• A marketing tool that will draw better candidates

Don’t ignore the big shift toward pay transparency happening now. States like CA, CO, & NV have already passed laws requiring employers to include salary ranges in their job postings, and many more are moving in the same direction.

A new pay disclosure era is here to stay, but many organizations are not ready to move forward due to fear of adverse employee reactions, internal administrative issues, and a lack of pay policies. Current employees may not like seeing their position advertised for more than they are currently making.

What can you do to prepare for this shift:

• Put aside fear and change your mindset, focusing on setting up clear internal pay structures and practices

• Create trust by educating your employees on your approach and plan for fair pay so they know their compensation is reasonable and suitable for their role

• Make sure to purchase your 2023 State Cheat Sheets (coming late January) and find out about pay transparency requirements in your state