It’s been just over a month since the Pay Transparency Law was signed. In our October 5 communication (click here to view), we started the discussion, so let’s keep it going. Because the majority of Affogato’s clients have less than 100 employees, we’re putting more focus on the pay scale disclosure than on the pay reporting requirements.
Disclosing the pay scale for a job isn’t new. Today, we have to provide a candidate with the pay scale upon reasonable request, which as typically been after a first interview. You’ve each had a chance to learn a little, so the information has a bit of substance. But in January, we have to provide the pay scale in the job posting. That feels a bit vulnerable, doesn’t it?
What’s a pay scale? It seems like such an easy question. The definition in the bill is: the salary or hourly wage range that the employer reasonably expects to pay for the position.
Why does a pay scale matter? It goes in the job announcement, so it should make part of the screening process easier. You still can’t ask about salary history, but now when you say “we plan to pay between $33 and $36 per hour, is that what you expected?”, your candidates will already know.
But is it really that simple? Probably not. When you start hiring for a brand new job in your organization, you’ll have some pay data from reliable sources and you’ll have your budget. You’ll post the job and get some feedback from the market in the form of lots of qualified applicants, or not. Will a lack of response mean you’re paying below market rates? Or is it something else? And if you’re able to offer a high pay rate, will you really get more and better applicants?
And then, if you’re hiring one more just like other employees you already have, you may not have that much flexibility. The pay scale in your posting could be higher than your current employees are making. Then what? Here’s where you slow down and figure out what changes you need to make.
The other really important part about pay transparency is that current employees can ask for this information. This may mark the beginning of a cultural shift in many organizations. Transparency is more than just pay, as this article points out. Lots to think about.
We believe that taking care of your current employees is one of your main responsibilities as a leader of people. If you don’t already have a handle on your actual pay ranges and where your employees sit in those ranges, this is a great opportunity to be proactive. Need help? Your Affogato HR Consulting team is ready to work with you.
We’d like to hear what you’re thinking about on pay transparency and any other HR topic. Please drop us a note.
Jonna, Lisa, Karen, Lisha and Suzanne
The above/attached information is not a legal advice. It should not be considered as a legal opinion as to which laws apply or as to how any law applies to a particular situation. Companies or individuals should seek advice of Counsel with regards to their situation.