One in five states has pay transparency laws already, but if you’re in one that doesn’t have it yet, is there an advantage to keeping salary bands a secret? Is it a smart strategic move to be clear upfront with job applicants, or is it better to see how things play out?
If you’ve been searching for jobs lately (or you’ve been snooping on your competitors’ postings) you’ll have seen a little bit of everything. Some employers list an impossibly wide salary range, some are spot on, and some say nothing at all. Voluntarily providing salary information isn’t a clear-cut “yes you should” or “no you shouldn’t.” There are a lot of things you need to consider first.
Which States Require Pay Transparency?
Since Colorado’s “Equal Pay for Equal Work Act” in 2019, pay transparency laws have been rolling out across the country. If you are hiring in any of the states listed here, there’s no question about whether you need to provide salary information. It’s the law.
| State | Pay Transparency Requirements | Which employers must participate? |
| California | Disclose salary range in all job postings and don’t ask applicants about salary history | Employers with 15+ employees |
| Colorado | Disclose pay scales, job descriptions, and all job openings | All employers |
| Connecticut | Disclose salary during the hiring process | Employers with 1+ employee |
| Hawaii | Include a salary range that accurately reflects pay | Employers with 50+ employees |
| Illinois | Include wage scale in the job posting | Employers with 15+ employees |
| Maryland | Provide applicants with a wage scale and don’t ask about salary history | All employers |
| Nevada | Provide salary for any role applicants interview for | All employers |
| New York | Disclose salary ranges for positions performed in New York | Employers with 4+ employees |
| Rhode Island | Disclose salary ranges for job applicants and don’t ask about salary history | Employers with 1+ employee |
| Washington | All job postings must include salary information | Employers with 15+ employees |
The Case FOR Voluntary Pay Transparency
- Your applicants are googling it anyway. They’re on Glassdoor. They’re reading up on what a front desk coordinator makes and they’re asking their RN friends how much they’re earning. It’s never going to stay a secret (the National Labor Relations Act allows employees to discuss wages openly) so if you don’t list a number now, candidates will fill in the blanks themselves. They might not fill it in the same way you would, though.
- It filters your applicant pool naturally. The nursing shortage is real and time is of the essence when you’re hiring. Listing the range upfront means that the people who are applying are already aligned with what you’re prepared to offer. That means faster interviews and less back-and-forth.
- It signals that your practice has integrity. Younger hires, especially, have very little patience for money games. They care if their employer is transparent, and hiding the number may suggest that you’re planning to lowball them or that you’re not very organized. Not a good impression.
- It gets you ahead of the law. Pay transparency is not federal law, but it’s spreading fast. By our count, there are 14 other states talking about it. If you offer pay transparency before the law demands it, you’re good. You won’t have to worry about accidental non-compliance.
The Case AGAINST Voluntary Pay Transparency
- Your current staff might see it. Yep, this is the one you were afraid of. If you list a salary range for a new hire, you better believe word is going to get around. If that number is higher than your current employees’ salary, you’ve just given them a reason to ask for a raise. Are you ready for that conversation?
- You lose some flexibility in negotiation. Once the number is out, that’s both the ceiling and the floor. Your next best hire might not be asking for as much as you think. Or if you would’ve gone higher for a truly exceptional candidate and they skip right past the salary, you’ll never get a chance to talk it out.
- Your competition might see it. You offer $5000 more than the local competition? They might turn around and outbid you. On the other hand, if you disclose a salary that’s way less than your competition, that could look like penny pinching, even if you have amazing benefits.
- It can expose inconsistencies you haven’t addressed yet. This one hurts. If you’ve been making informal or ad hoc arrangements and haven’t reviewed your policies in a long time, voluntary pay transparency makes them stick out like a sore thumb. You’ll have to fix them eventually, but if you’re urgently trying to hire, this might not be the best time.
Before You Decide, Ask Yourself 3 Questions
Don’t just peek at your competitors’ postings. Okay, yes, do consider what the competing practice is offering, but give it a little more thought than that. When you’re making the decision about voluntary pay transparency, ask yourself these three things. Be honest:
- Is the compensation package competitive for new hires?
- What would my current employees think when they saw the number?
- Am I trying to attract specific candidates right now, or am I testing the waters to see what’s out there?
Depending on who, when, and why you want to hire, pay transparency can be either a red flag or a green one.
It’s More About the Job, Anyway
If you’re not on that list of pay transparency states yet, you still have a choice. You can ask your employment attorney for advice, and for most health and dental practices in this situation, it’s a strategic question more than a compliance one. HR for Health can’t make this decision for you, but we can help you attract and onboard the best talent for your practice.
