3 Reasons Why Companies Keep Salary Information Hidden
Yes, salary information should be included in job postings. Both candidates and recruiters agree, so… why isn’t it happening?
The short answer is, “Unfortunately, it’s not the Recruiter’s decision.” The longer answer is, well… A LOT.
As you’ve probably seen already, NYC Employers will be required to post salary ranges in job postings starting in November 2022. It was supposed to kick off back in May but, well… companies didn’t agree!
Openly sharing salary information is fantastic, and I could not be more excited about it. This decision will push more equitably, inclusive, and fair hiring practices, and I’m 100% that other States will follow suit shortly. (More great news!)
Candidates, Recruiters, and ED&I Practitioners have been advocating for pay transparency for years, so… why is it taking this long? Why all the push-back? Let’s take a few minutes to go over a very quick summary of why companies have been struggling with openly sharing their salary bands:
Unfortunately, many companies and leaders still don’t believe in pay parity (meaning equal pay for equal work). Yes, even in 2022.
Many companies believe in pay parity and have reviewed their internal processes and systems to ensure they follow an “equal pay for equal jobs” framework.
However, they are still struggling with pay Equity — which directly impacts the systems that determine, among other things, who gets access to roles/promotions/salary raises/bonuses and when.
Enter the pay gap!
Pay Transparency and its impact on Talent Retention
Sharing salary bands with external candidates (and the World) also means that the current employees at that company will have access to that information too, and unfortunately, this is one of the major reasons why companies decide not to share salary data.
If a company has been struggling with Pay Parity and Pay Equity, it’s likely they don’t have an internal Pay Transparency policy…