Editor’s note: Priscilla Koranteng is the director of human resources for Indeed, a job listings website. The opinions expressed in this comment are my own. Sight more opinion on CNN.
In the United States, the demand for salary transparency is increasing. Laws requiring employers of a certain size to include salary information on job listings went into effect January 1 in California and Washington state. Similar laws already existed in other areas, including Colorado, New York City, Westchester County, New York, and Jersey City, New Jersey.
Still, it’s clear that many companies still don’t necessarily see pay transparency as a priority. As of December 4, less than half (45%) of job postings on Indeed nationwide have salary information provided by the employer.
It should come as no surprise that better disclosure in the hiring process is good for job seekers. But it also benefits employers, which is why more companies should start implementing pay transparency policies, even if they aren’t required to do so by law.
According to Indeed data, job postings with payment information on our platform receive significantly higher interest from job seekers – approximately 30% more applications are initiated per click. Pay transparency is an important consideration in helping employers attract the best talent, particularly notable in today’s tight job market.
Embracing pay transparency can also result in more equitable workplaces. For example, when women in the US understand that when they are over 15 and working full time, they earn an average of 83 cents on the dollar compared to men, or when black women realize that they only earn 64 cents on the dollar. pennies on the dollar compared to non-Hispanic white men, they are able to demand equal pay for equal work. Pay transparency promotes much-needed social progress, driving our society forward and helping more workplaces achieve pay equity.
This welcome progress also aligns with efforts by employers to foster more equitable work environments through diversity, equity and inclusion programs, which in turn drive innovation and attract strong candidates, especially younger workers who demand higher levels. heights of social justice.
For organizations looking to meet their diversity, equity, and inclusion goals, pay transparency is a simple step in the right direction. Furthermore, when an organization does this well, it doesn’t just attract great talent; it also retains the talent it has, which includes diverse employees.
A good way to measure engagement within an organization is to assess whether employees can say, “I recommend company ‘X’ as a great place to work.” Companies can then use this data to dig deeper into any underlying or systemic issues among a specific demographic. Addressing pay inequality is just one example of an area that an organization must consider to meet its diversity and inclusion goals.
It will take time for companies to perfect how to include information about pay transparency in their job postings. In response to new pay transparency laws, some employers have posted overly large pay ranges that appear to mask a position’s true range — a $100,000 difference between the low and high extremes in some cases.
Employers who are more accurate with the pay ranges in their listings will provide job seekers with more useful and actionable information and, in turn, attract better-fit applicants.
In 2019, Indeed began including payment information before it was required by law in certain markets. We saw significant benefits in attracting and retaining high-quality talent. As we continue to embrace and iterate on our own pay transparency efforts, we recognize that it’s a journey that requires regular analysis, scrutiny, and an open mind to continue to evolve. Several years later, we have no doubt that pay transparency was an important step for our employees and the company, and quite frankly, the right thing to do.
There is growing evidence that pay transparency is beneficial to employees, employers and society. So we hope more employers enjoy success this year by making pay transparency a top priority.