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How Pay Transparency Laws Help You Recruit in a Competitive Market

Pay transparency is a hot topic these days. Many states have laws requiring employers to disclose salary ranges— either in job postings, after an initial interview or if an applicant requests that information. California, Colorado, Connecticut, Maryland, and New York require employers to disclose pay ranges. Effective January 2023, Rhode Island and Washington will also have pay transparency laws.



Pay transparency is a growing trend and knowing how to use it to recruit is increasingly important. Here are a few things to consider to leverage pay transparency in your recruiting process:

Share Salary Ranges

One of the most common questions candidates ask a recruiter is, “What is the salary range?” Candidates are very aware of their worth. Few candidates will consider a step back in pay when looking for a new role. Recent studies have shown 98% of workers believe employers should disclose salary ranges on the position description. And 53% refuse to apply for a job that does not have the range listed.

Improve DEI

The intent of these laws is to promote fair pay to address wage gaps based on gender, race, and ethnicity. Data from Handshake shows companies receive 13% more applications from students of color when salary ranges are included in job postings. Disclosing salary lets applicants know that companies are serious about working to fix pay inequities.

Pave the Way for a Smoother Hiring Process

Pay transparency laws are not only paving the way for pay equity, but also saving time and guesswork in the interviewing and hiring process. No one wants to go through three rounds of interviews to discover salary is a dealbreaker. Companies that fail to disclose salary information risk losing applicants and draining their talent pool. A recent survey of adults who have looked for work within the past five years found that a third of them would not go to a job interview unless they knew the pay.

Use Pay Transparency as a Competitive Edge

Pay transparency presents an opportunity for organizations to gain a competitive advantage. As more and more states pass legislation, getting ahead of the curve and disclosing salary ranges can only help. Disclosing pay ranges shows your organization is paying its employees fairly and equitably. Smaller organizations have concerns about competing with larger firms with the ability and resources to have higher ranges. Salary is not the only information candidates rely on when deciding whether a job is the best fit.

This is the small organization’s opportunity to highlight the benefits of working in their company. As more and more larger companies are bringing workers back to the office, smaller companies with remote, flexible, or hybrid schedules may be able to compete with non-cash benefits. Opportunities to work directly with the executives, more mentoring, and less bureaucracy are also important considerations for today’s job seekers.

Questions about pay transparency and what it means for your organization? Our team of experts is ready to help you sort it out and decide the best course of action. Contact us at info@talentremedy.com or 703-362-0175 to set up a time to speak with one of our experts.

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