Alternate name: Salary transparency Companies may opt for different levels of pay transparency. Some organizations may choose to share salary ranges with new hires and current employees, while others may publish exact salary data, including bonuses and other discretionary compensation, for every worker at the company. Employers that choose to embrace pay transparency first must decide how much information they want to share with employees and candidates. Depending on their goals and legal compliance requirements, this might mean:
Creating salary ranges for job titles and publishing them internally and externally on job adsSharing all pay ranges for every job at the organizationProviding details about factors that influence compensation, such as seniority and skillsetPublishing exact salary data for every job at the company, including C-suite roles
Compensation pros often recommend that companies that implement pay transparency have a plan to measure outcomes. This can include employee surveys and pay equity audits.
How To Find Salary Information
As a job seeker or employee, you can find out salary information from a variety of places.
Job Listings
A small but growing number of employers have started listing salary ranges in job postings, even in areas where they are not legally required to do so. For example, Target has set a starting wage range from $15 to $24 an hour.
Salary Websites
Websites like Glassdoor, Payscale, Indeed, and LinkedIn have tools you can use to obtain salary data for many different occupations. The Bureau of Labor Statistics’ Occupational Outlook Handbook has median pay for hundreds of occupations.
During the Interview Process
Some cities and states require employers to provide salary ranges to applicants who ask, but laws vary as to when they must do so. For example, employers in Cincinnati must disclose a salary range to any applicant who has received a conditional job offer. But employers in Toledo must provide a salary range to any applicant who inquires—regardless of whether they’ve received an offer.
Internal Sources
Companies who choose to reveal pay data to employees may provide it in job postings, on the company intranet, via a shared spreadsheet or file, or any number of other ways.
Public Sources
Very few companies share their salary data with the world at large. For example, Buffer publishes its pay information—including the exact salary of all its employees—on the company site.
Benefits of Pay Transparency
Pay transparency has multiple benefits for job seekers, employees, and companies, including:
A Better Hiring Process
The traditional hiring process is a black box as far as salary is concerned. Employers might not ever share their budgeted salary range, hoping that applicants will name their price first and lock themselves into a lower salary. This strategy has a number of flaws, including the risk of underpaying valuable employees. It’s also a time-waster for everyone involved.
Improved Pay Equity
Studies have shown that women tend to be less likely to negotiate pay than men. One result of this is a persistent gender pay gap, even after controlling for factors like job title, education, and skillset. Pay transparency can close the gap by ensuring that all candidates start on the same footing—or at least in the same pay band.
Decreased Turnover
Pay transparency also has a positive effect on pay perception, meaning employees’ feelings about whether or not they’re paid fairly. Research shows that employees who feel that they’re paid below market are more likely to look for a new job than those who think they’re being paid appropriately.
Increased Employee Engagement
When you’re happy at your job, everyone benefits. You’re more engaged, which makes you more productive and effective. Ultimately, that leads to higher profits and better outcomes for your employer.
