Cayman Islands, Caribbeanand International News
Monday, Mar 20, 2023

Here's what happens when salary is actually included in job listings

Here's what happens when salary is actually included in job listings

Job listings can be extremely detailed, with long lists of responsibilities and required skills, descriptions of company culture and perks, and numerous other reasons for why you might want to work there. But there's often one glaring omission: the pay.

Only about 12% of postings from US online job sites include salary ranges, according to Julia Pollak, chief economist at ZipRecruiter. And that's an increase from 8% in 2019.

Part of the reason for the uptick is the stronger job market, Pollak said. "A tightening labor market does appear to have caused more companies to disclose pay rates," she said.

But a growing number of companies will soon be required by their local governments to disclose what they'll pay.

A new law in New York City, for example, requires employers to include a salary range on job listings. The law, which goes into effect in May, applies to employers with four or more employees, and excludes temporary staffing firms.

"Our new law shines a light on pay inequity," Helen Rosenthal, a former City Council member and sponsor of the bill, told CNN in a statement last month.

"Including pay ranges in job postings allows job seekers to determine whether they will be able to support themselves and their family when they apply for a job."

Colorado has a similar law that has been in effect since January 2021, and a few other states, like Rhode Island and Maryland, have legislation that requires employers to provide salary ranges upon request.

Why the big secret?

Labor costs are a major expense for companies, and staying mum on what they're willing to pay can enable them to hire candidates for less, said Katie Donovan, founder of consultancy Equal Pay Negotiations.

"Companies don't want informed consumers ... because the more informed the consumer is, the harder it is to negotiate a savings of any kind," she said.

"There's definitely a mindset that the job of recruiting and hiring is to bring in the best person at not a penny more than needed. And the best way to do that is don't tell them how much you actually have available."

Keeping the number under wraps can also be a negotiation strategy. "The person who says a number first loses," said Donovan.

Publishing salary information also means that competitors and current employees can see what a company is paying.

In some cases, current employees may discover that they are underpaid, which could lead them to demand more or find a new job.

"That's the scary part, that is why [companies] aren't putting it in writing," she said.

Why it's good for employers

But posting salaries can also be advantageous to companies when it comes to negotiating, said Zoe Cullen, assistant professor of economics at Harvard University.

"Firms that firmly set a price for a particular job have a high degree of bargaining power in the sense that they are announcing to potential job candidates that, 'if you try to negotiate anything higher than this price, it is going to effect everybody else because I will have to publicly adjust the going rate for this job.'"

Sharing salary ranges can also help attract workers.

"When people are searching for work, [compensation] is the most salient concern typically. So if they don't find the [salary] information they need, they may not waste the time going through the process at all," said Pollak.

At the same time, employers can also create a more qualified applicant pool.

"It saves them the time and energy of searching through candidates who are never going to accept the job... people will self-select out when the [salary] is too little," said Donovan.

She added that when companies are more upfront about salaries, it can help create trust. "They feel more respected and apply more when there is the information...it's like 'OK, they are treating me like a human being.'"

Why it's good for job hunters...

For starters, published salary ranges help job seekers understand what the market is willing to pay for certain positions.

"If you have the ability to know what salary is being offered and know what others are earning, then you are in a position to advocate for yourself," said Laurie Berke-Weiss, principal attorney at Berke-Weiss, a labor and employment law firm in New York City.

Knowing what a job pays from the start can also make the job-hunting process more streamlined. In the current tight labor market, candidates are being more selective about what roles they apply for, and advertised salary ranges can help them narrow down their options.

"Role descriptions can be made to sound more than they are and [job seekers] can go deep into the process and realize that the salary is significantly lower than what they make right now," said Rohan Rajiv, group product manager at LinkedIn. He added that LinkedIn job postings that included salary information increased by 50% in January 2022 from January 2021.

Laws requiring salary disclosure, as well as other laws like banning companies from asking about salary history, can also help with pay equity.

Studies show women and people of color tend to be paid less than White men in the same roles. To right the issue would require significant salary increases.

"Mathematically, for a Hispanic women to answer the question: What are you looking to earn in this job? For her to say the same number as a White guy, she would have to increase her current pay by over 100%... just based on statistics," said Donovan.

...And also for existing employees

Posting salary ranges can be enlightening for current employees as well.

"[If employees] see that they can get a 20% increase just by going to the competition, they'll start paying attention to their openings," said Donovan.

Such transparency can also help existing employees know if they're underpaid.

"Most people think that the people with longer tenure [at a company] are making more than the new kid that just started. But no, the new kid is probably making more," said Donovan. "The new kid is getting paid the current market value and your 2% [annual] raise hasn't kept up with the market rate."

Cullen's research shows that employers' public disclosures of pay ranges can reduce a worker's bargaining power and limit their ability to ask for more beyond the range.

But there's more to compensation than what's on a paycheck. Companies can also offer benefits like signing bonuses, stock options, and other perks that they might not always be required to be disclosed.

"You can have a company that is very openly, publicly committed to pay transparency, but if they really want a candidate who requires more to take the job than they initially offer, they can find ways to make that posted salary range still hold," said Pollak. "Companies can find all kinds of creative ways to get around these requirements."


Related Articles

Home Secretary Suella Braverman tours potential migrant housing in Rwanda as asylum deal remains mired in legal challenges
Paris Rioting vs Macron anti democratic law
'Sexual Fantasy' Assignment At US School Outrages Parents
Credit Suisse to borrow $54 billion from Swiss central bank
Russian Hackers Preparing New Cyber Assault Against Ukraine
Jeremy Hunt insists his Budget will get young parents and over-50s back into work
If this was in Tehran, Moscow or Hong Kong
TRUMP: "Standing before you today, I am the only candidate who can make this promise: I will prevent World War III."
Mexican President Claims Mexico is Safer than the U.S.
A brief banking situation report
Lady bites police officer and gets instantly reaction
We are witnessing widespread bank fails and the president just gave a 5 min speech then walked off camera.
Donald Trump's asked by Tucker Carlson question on if the U.S. should support regime change in Russia?.
Silicon Valley Bank exec was Lehman Brothers CFO
In a potential last-ditch effort, HSBC is considering a rescue deal to save Silicon Valley Bank UK from insolvency
BBC Director General, Tim Davie, has apologized, but not resigned, yet, following the disruption of sports programmes over the weekend
Elon Musk Is Planning To Build A Town In Texas For His Employees
The Silicon Valley Bank’s collapse effect is spreading around the world, affecting startup companies across the globe
City officials in Berlin announced on Thursday that all swimmers at public pools will soon be allowed to swim topless
Fitness scam
Market Chaos as USDC Loses Peg to USD after $3.3 Billion Reserves Held by Silicon Valley Bank Closed.
Senator Tom Cotton: If the Mexican Government Won’t Stop Cartels from Killing Americans, Then U.S. Government Should
Banking regulators close SVB, the largest bank failure since the financial crisis
The unelected UK Prime Minister Rishi Sunak, an immigrant himself, defends new controversial crackdown on illegal migration
Man’s penis amputated by mistake after he’s wrongly diagnosed with a tumour
In a major snub to Downing Street's Silicon Valley dreams, UK chip giant Arm has dealt a serious blow to the government's economic strategy by opting for a US listing
It's the question on everyone's lips: could a four-day workweek be the future of employment?
Is Gold the Ultimate Safe Haven Asset in Times of Uncertainty?
Spain officials quit over trains that were too wide for tunnels...
Don Lemon, a CNN anchor, has provided a list of five areas that he believes the black community needs to address.
Hello. Here is our news digest from London.
Corruption and Influence Buying Uncovered in International Mainstream Media: Investigation Reveals Growing Disinformation Mercenaries
Givenchy Store in New York Robbed of $50,000 in Merchandise
European MP Clare Daly condemns US attack on Nord Stream
Former U.S. President Carter will spend his remaining time at home and receive hospice care instead of medication
Tucker Carlson called Trump a 'demonic force'
US Joins 15 NATO Nations in Largest Space Data Collection Initiative in History
White House: No ETs over the United States
U.S. Jet Shoots Down Flying Object Over Canada
Being a Tiktoker might be expensive…
SpaceX, the private space exploration company, made a significant breakthrough in their mission to reach space.
China's top tech firms, including Alibaba, Tencent, Baidu, NetEase, and JD.com, are developing their own versions of Open AI's AI-powered chatbot, ChatGPT
This shocking picture, showing how terrible is the results of the earthquake in Turkey
President Joe Biden delivered the 2023 State of the Union Address , in order to help Americans that missed the 2022 speech, do not have internet, and suffer from short memory.
The desk of King Carlos Alberto of Sardinia has many secret compartments
Today's news from Britain - 9th February 2023
The five largest oil companies in the West generated combined profits of nearly $200 billion in 2022, which has led to increased calls for governments to impose tougher windfall taxes
2 earthquakes in Turkey killed over 2,300 people
Powerful Earthquake Strikes Turkey and Syria, Killing More Than 1,300 People.
Turkish photographer Ugur Gallenkus portrays two different worlds within a single image. Brilliant work