Does pay transparency help to attract and retain employees? New software can help make pay transparency easier.
If you’re not transparent about salaries, employees are more likely to leave. Those who stay are more likely to think they’re underpaid even if they aren’t.
Imagine that the next time you’re offered a job, the hiring manager shares the salary range, not just for the position you’re accepting, but for every position along your career path from entry-level to project coordinator to associate director to vice president and beyond.
“The reality is we’re trying to hire and everyone we are talking to has two or three offers,” says Thanh Nguyen, CEO and founder of OpenComp, a software company that offers compensation data and benchmarks to employers. “That means you need to be open about how you pay.”
This scenario might be closer to reality than you think as more cities and states are passing laws requiring employers to provide salary information to employees and job candidates. In Colorado, employers must provide salary information in all job postings. In Nevada, salary information needs to be offered after the first interview, and in Connecticut, it needs to be presented when the job is offered. Beginning in January 2023, Rhode Island employers will need to provide salary information prior to discussing compensation. In Maryland, California, Washington, and in the cities of Cincinnati and Toledo, Ohio, employers must provide this information upon request.
Legislation is not the only reason employers are providing more information about salary ranges. Employers are also realizing that pay transparency is a way to engage and retain employees, especially as a significant number of workers are leaving their jobs during The Great Resignation.
Read the complete article BY LISA RABASCA ROEPE: https://www.fastcompany.com/90692823/an-easy-fix-for-the-great-resignation-pay-transparency