We are seeing more and more job postings with salary ranges.
About 30% to 40% of employers are not complying with new state pay transparency laws. But for employers who have had laws in place since 2021 like Colorado, the compliance rate is closer to 70%.
We are also starting to see more complaints filed and lawsuits if a company does not comply. Some employers will pay penalties for noncompliance and others will lose in court.
Most employers don’t want to have their name associated with noncompliance. And some senior leaders don’t care and think keeping their salary ranges a secret is some sort of competitive advantage. (It isn’t.)
After Colorado passed legislation in 2019 requiring companies to list salary ranges in job postings, we have had nine other U.S. states do the same. Those states are California, Connecticut, Illinois, Hawaii, Maryland, New York, Nevada, Rhode Island, and Washington.
This trend will grow. And we are seeing the same outside of the U.S.
The increase in pay transparency laws with the intent to solve pay inequities is causing the demand for experienced compensation professionals to soar.
And because the supply of compensation professionals is less than demand, the amount employers must pay for compensation professionals is rising.
If you have 250 to 500 employees, at least one of your HR team members should have compensation as part of their job.
If you have 500 to 1500 employes, a 2 to 3-person compensation team is more the norm.
And if you don’t feel like you can afford to hire an experience compensation professional as an employee, let’s talk. My team and I are scheduling compensation project work for 2024. We like to work with companies who want to be in compliance, and we don’t charge as much as the big consulting firms.
Sources: Revelio Labs, Payscale
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