Just a year ago, only Colorado required employers to list salary ranges on job postings. In November, a similar rule in New York City will go into effect followed by another in Washington state early next year. With California joining, companies like Alphabet Inc., Meta Platforms Inc., Walt Disney Co. and Wells Fargo & Co. will have to comply by January 2023.
Regulators have latched onto salary transparency as a way to chip away at the stubborn gender and racial wage gaps. Historically, employers have kept pay shrouded in secrecy, reinforcing longstanding taboos that keep workers hush about what they make. That can lead to inconsistencies that disproportionately hurt women and other underrepresented workers. A little sunlight, however, can reveal discrepancies and force corrections.
Workers increasingly agree with that sentiment. In a recent survey from the human resources analytics platform Visier, 80% of respondents said they wanted some form of salary transparency and 68% said they would switch jobs to work somewhere with greater visibility into pay. Younger generations are also much more likely to feel comfortable sharing how much they make than older ones.
“Are they trying to hold back for some specific reason? Are they trying to hide it because they aren’t going to offer very much?” he said.
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