Reflect on your best (and worst) hiring process. What did it look like? What were some of your pain points? Often, it probably had something to do with salary and negotiation. Thankfully there’s good news ahead for everyone that’s currently in the job market. It’s imperative we make the best decisions to propel our careers, while also making sure our financial future is at the top of mind. 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 prior to applying.
More transparency is established before the hiring process
Think back to the last time you reviewed a job posting. There’s the title, a description of the responsibilities, and required experience. There could also be some filler information that appears helpful, but ultimately leads to more questions than answers. Oftentimes a job posting will not have enough information on salary expectations. When there’s a concrete number being offered, it’s easier to advocate for yourself during the negotiation process. You’ll be able to see whether your current pay is sufficient, too low, or somewhere in the middle. Once you know where you stand, your next steps are easy.
For those that are looking to be promoted within their current organization, knowing salary requirements are just as equally important. This information serves as a baseline and can be helpful when employees consider seeking outside opportunities. Many people are often underpaid without realizing it. It’s important to determine whether you’re being fairly compensated for your time and labor by researching salaries for similar roles at other companies. A few Google searches, or asking a friend for their input can help give you a semi-educated guess. Knowing how other companies are compensating their employees will prevent you from lowballing yourself during salary negotiations. If you’ve been with a company for some time, your salary increases can be well under 10%. Someone newer within the organization can be onboarded with upwards of more than 20%. This creates pay gaps and can leave employees disgruntled altogether.
Creates a better experience for potential employees during the job search
We all know how stressful the job application process can be. An endless number of creating job profiles, completing job submissions and resume updates is tiring. Before you’re even contacted for an interview, you are walking into the process blindly knowing the salary ranges. As the labor market continues to shift, candidates are being much more selective about what roles to apply for — and having the salary ranges upfront can help to narrow down their options. From an HR perspective, this allows companies to know the applications submitted are being intentional and want to be considered for the specific role. That also means fewer initial phone screenings, quality data within the Applicant Tracking Systems (ATS), and interviews. Will this result in better, more accurate job descriptions created by organizations? We’d sure like to hope so; only time will tell.
Making strides to equalize the gender and racial pay gap
At least 14 states currently have laws in place that prohibit employers from asking about a candidates’ previous salary history. Oftentimes, that information was used to marginalize and justify rates that may or may not be in the applicant’s favor. As states continue to amend their pay acts, be sure to stay informed by checking your state’s Department of Labor sites regularly for more information.
For example, in Connecticut employers must provide the salary ranges if the applicant asks for it – or if a job offer is extended. In Maryland, employers are required to disclose pay range information – upon the applicant’s request. In New York City, employers with four or more employees are required to include salary ranges on job listings, but this excludes temporary staffing agencies. By these examples you can see how imperative it is to ask questions before getting too far along in the process. While the information is there and should be readily given, it truly depends on the city and state you reside in. Keep yourself informed of the many nuances that vary by state.
Diversity, equity, and inclusion are buzzwords that are often used within companies to appeal to 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 “the achievement of a work environment in which all individuals are treated fairly and respectfully, have equal access to opportunities and resources, and can contribute fully to the organization’s success.” For companies to truly operate with inclusivity, there must be an intentional focus on salary equality for current and new employees, alike – including women, minorities, and people of color. Having salary information ahead of time as so many people have been impacted by today’s pandemic economic recovery encourages employee support while also strengthening the workforce. Be on the lookout for these changes within your state and remain informed. Pay transparency is enlightening and benefits us all!
Marsha Barnes is a finance guru with over 20 years of experience dedicates her efforts to empower women worldwide to become financially thriving. Financial competency and literacy are a passion of Marsha’s, providing practical information for clients increasing their overall confidence in their personal finances.