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What Else Do You Offer: Impact of Pay Transparency Laws

ZipRecruiter conducted an employer survey looking at salary trends in light of California, Colorado, and Washington laws requiring pay transparency from employers. These laws require employers to publish the wage or salary range they expect to pay for each job listed. ZipRecruiter says it is becoming standard practice for employers to include salary information in job postings, with 72% of respondents saying they post that information. Around 50% to 60% of employers total have salary ranges posted on ZipRecruiter.

The pay transparency trend is impacting wage levels, job applications, and negotiations. Almost half of these surveyed employers reduced the pay offered for certain positions. More job titles, industries, and job categories on the website have seen average wages decline. On the other hand, employers can see what their competitors are paying, which may alter what they decide to offer.

Employers report feeling pressured by candidates to raise pay even though applicants already know the range. Some employers struggle to fill roles because candidates want more money. While hourly wages have generally gone up since the pandemic, consumer prices have also risen during that same period. As a result, many employees do not feel a benefit from any wage increases. A Glassdoor economist told CNBC that recruiters have less flexibility to negotiate as the posted salary range constrains them.

Against this backdrop, employers give non-cash benefits such as perks and flexibility in job postings to attract qualified candidates. According to the Bureau of Labor Statistics, non-cash benefits account for 29.4% of compensation in private industries. Aware of what a position will pay, jobseekers can focus on learning about the workplace culture, benefit programs, and career development during the interview process.