Is this the end of salary negotiation? Will it narrow gender and ethnicity pay gaps? Here's what to know about how pay transparency could affect you.
Knowing if you’re being paid fairly for the work you do is a mystery shrouded in a lack of information. That may be changing, though, and pay transparency may be the catalyst. It’s a growing trend for companies to reveal what a job opening or current position pays — whether voluntarily, or because governments mandate it.Knowing if you’re being paid fairly for the work you do is a mystery shrouded in a lack of information. That may be changing, though, and pay transparency may be the catalyst.
“Knowledge is power. So, you know, if you have no idea that you can possibly earn more money, then you wouldn’t even ask for it,” Matuson says. And Lulu Seikaly, a senior corporate attorney with Payscale, notes that as current laws stand, employers aren’t prevented from offering pay higher than a range that is posted for a position, as long as the company can provide objective reasoning for the exception.
New York is rolling out a new law requiring employers to list salary ranges on job postings. Similar laws in places like Colorado aim to even the playing field for applicants. But not everyone is embracing the changes. Illustration: Adele Morgan She predicts how the gender pay gap might narrow: “Women’s salaries will increase to where they should be — some overpaid men’s salaries may slightly decrease, to be more in line with where they should be.”What if you’re at the low end of the range? If you find out you’re at the lower end of a salary band, Clarke says pay transparency will help you communicate with an employer about what you think you deserve, “And you’re anchoring that all into data, which is really powerful,” she adds.
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