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Indeed says half of its US job postings now feature pay transparency

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61% of August job postings featured some level of pay disclosure
Employer pay strategies are increasingly prioritizing transparency and equity
It is essential to acknowledge that the shift towards pay transparency may introduce complexities

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August 2023 marks record high in employer disclosure

According to a report released by Indeed’s Hiring Lab on September 14, a significant shift in job postings across the United States occurred in August. Specifically, it was observed that half of all job listings on Indeed during that month included some form of employer-provided salary information. This statistic marks the highest percentage of pay transparency recorded on the platform to date.

Notably, the trend toward pay transparency was particularly pronounced in New York, where 61% of August job postings featured some level of pay disclosure. This figure represents a substantial increase compared to the 31% recorded in the previous year. Anticipated to rise further, this surge in transparency follows the implementation of new salary disclosure regulations on September 17.

Cory Stahle, an economist at Indeed’s Hiring Lab, commented on the implications of this shift, highlighting that including pay information in job listings can serve as a means for employers to cultivate trust with their workforce, attract prospective employees, and potentially address gender and racial pay disparities.

Stahle’s report also noted that the push for salary transparency has been bolstered by growing public support and has led to the introduction of salary disclosure laws in several states, fostering an overall increase in pay transparency nationwide.

The report revealed an impressive transformation in the landscape of job postings, with the share of listings featuring pay transparency information nearly tripling from 18% in February 2020 to 50% in August 2023. It is projected that this upward trajectory will continue in the months ahead.

Regionally, the prevalence of pay transparency information varies, with employers in the Western United States leading the way in providing pay details, while those in the South lag behind. For instance, in August, Mississippi had the lowest rate of pay information disclosure at 33% of job listings, while Colorado topped the list with 81% of postings including salary details. This disparity is attributed to Colorado’s early adoption of pay disclosure laws in January 2021, marking the longest period of such regulations in place among states.

Furthermore, metropolitan areas subject to pay disclosure laws have experienced higher rates of pay transparency. Eleven out of the top 15 metro areas with the most significant growth in transparency are located in California. San Jose, in particular, stood out, surging from 29.9% pay transparency in August 2022 to an impressive 73.2% the following year.

This trend toward pay transparency is expected to persist throughout the year, as new laws come into effect. HR Dive maintains an ongoing list of states and local governments that mandate pay or pay range disclosures by employers.

Notably, employer pay strategies are increasingly prioritizing transparency and equity, as indicated by a recent report from Payscale. Initiatives aimed at achieving fair pay and transparency have become central to the employee experience, according to HR Dive’s sources.

However, it is essential to acknowledge that the shift towards pay transparency may introduce complexities and challenges into the hiring process. This is particularly true for current employees who may come across their positions listed with higher salaries. Employers should be prepared to address questions, engage in discussions about equity and parity, and establish policies regarding salary ranges and raises to navigate this evolving landscape effectively.