Think about your best (and worst) hiring process. What did it look like? What were some of your pain points? Often it had something to do with salary and negotiation. Fortunately, there is good news for everyone currently in the job market. It is imperative that we make the best decisions to propel our careers, while also ensuring that our financial future comes first. Whether you’re casually browsing the market or taking a leap into a new career, we’ll outline the benefits of knowing the salary ranges before you apply.
More transparency is achieved before the recruitment process
Think back to the last time you reviewed a job posting. There is the title, a description of the responsibilities and the required experience. There may also be some additional information that seems helpful, but ultimately leads to more questions than answers. Often a vacancy does not contain enough information about salary expectations. When a concrete number is offered, it is easier to stand up for yourself during the negotiation process. You can see if your current wage is adequate, too low or somewhere in the middle. Once you know where you stand, your next steps are easy.
For those looking to get promoted within their current organization, knowing salary requirements is just as important. This information serves as a foundation and can be helpful when employees consider seeking outside opportunities. Many people are often underpaid without realizing it. It is important to determine whether you are being fairly compensated for your time and labor by researching salaries for similar positions at other companies. A few Google searches or asking a friend for their input can help you come up with a semi-educated estimate. Knowing how other companies compensate their employees will help you avoid letting yourself down during salary negotiations. If you’ve been working at a company for a while, your salary increase could be well below 10%. Someone newer to the organization can come on board with more than 20%. This creates pay gaps and can leave employees completely dissatisfied.
Creates a better experience for potential employees when looking for a job
We all know how stressful the application process can be. Creating an endless number of job profiles, filling vacancies and updating resumes is exhausting. Before you are even approached for an interview, walk into the process blindly and know the salary ranges. As the job market continues to shift, candidates become much more selective about the positions they should apply to – and having the pay grades up front can limit their options. From an HR perspective, this allows companies to know that the applications submitted are intentional and want to be considered for the specific role. That also means fewer initial telephone screenings, quality data within the Applicant Tracking Systems (ATS) and interviews. Will this result in better, more accurate job descriptions being prepared by organizations? Of course we hope so; Time will tell.
Making progress to equalize the gender pay gap
At least 14 states currently have laws that prohibit employers from asking about a candidate’s previous salary history. Often that information was used to marginalize and justify tariffs that may or may not be in favor of the applicant. As states continue to change their payroll records, stay informed by regularly checking your state’s Department of Labor sites for more information.
For example, in Connecticut, employers are required to provide the salary ranges if the applicant requests it — or if a job offer is extended. In Maryland, employers are required to disclose salary range information – at the request of the applicant. In New York City, employers with four or more employees are required to include salary ranges on job openings, but this excludes staffing agencies. These examples will show you the need to ask questions before you get too far in the process. While the information is there and should be given easily, it really depends on the city and state you live in. Keep yourself informed about the many nuances that vary by state.
Diversity, equity and inclusion are buzzwords often used within companies to attract new talent and describe their current workforce. While diversity focuses on the range of human differences, the Society for Human Resource Management (SHRM) defines inclusion as “achieving a work environment in which all individuals are treated fairly and respectfully, have equal access to opportunities and resources, and can contribute fully contribute to the success of the organization.” For companies to truly operate with inclusiveness, there must be an intentional focus on pay equality for both current and new employees – including women, minorities and people of color. today, drives employee support while strengthening the workforce. Be alert to these changes within your state and stay informed. Pay transparency is enlightening and benefits us all!
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Marsha Barnes (28 posts)
Marsha Barnes is a financial guru with over 20 years of experience, dedicating her efforts to empowering women worldwide to become financially thriving. Financial competence and literacy are a passion of Marsha, providing clients with practical information that will increase their overall confidence in their personal finances.
This post Why employers are now sharing salary figures
was original published at “https://mint.intuit.com/blog/salary/why-employers-are-now-sharing-salary-figures/”