A friend of mine recently applied for a job. He interviewed, he filled out paperwork, he was told verbally that the job was his. But he was missing a crucial piece of information. He still hadn’t been told what salary the company was offering for his position.
Nobody wants to go through the exhaustion of interviewing just to find out later that the job is not offering anywhere near your desired salary amount. Why is it sometimes so hard — and so awkward — to uncover the monetary offering of a job advertisement?
Several states have found a solution to this issue: pay range transparency laws for job applications. California, Colorado, Connecticut, Illinois, Maryland, Nevada, New Jersey, Ohio, Rhode Island, New York and Washington have all passed (or are in the process of passing) local or state laws requiring employers to disclose pay ranges. When these disclosures are required to happen varies from the job posting to a designated time in the hiring process or upon request. Some of the laws also restrict employers from requesting an applicant’s wage history or basing a salary offer on an applicant’s previous wages.
Utah hasn’t joined the pay transparency club, but it should. As workers within Utah’s booming economy, we deserve transparency and knowledge when making such an important decision.
Pay transparency and the wage gap
These anti-secrecy laws not only reduce the stress of job hunting, they also play an important role in eliminating the gender pay gap. According to the U.S. Department of Labor, “women working full time, year round are paid 83.7% of what men are paid,” and the gap widens even more for Black and Hispanic women. Over the last two decades, this wage gap has not been impacted significantly, per Pew Research, but pay transparency could change that.
According to a National Women’s Law Center report, pay transparency during hiring can empower women to negotiate the salaries they deserve, but secrecy widens the wage gap. When employers do not provide a pay range before salary negotiations, “women often ask for less when they negotiate than men,” even if they are equally as qualified as their male counterparts.
The report goes on to say that “providing applicants with a salary range that the employer is willing to pay helps level the negotiating playing field and reduces gender wage gaps.”
Only 34% of workers say they are extremely or very satisfied with their pay, according to a Pew Research report from March. In a global survey by Glassdoor, researchers found that across seven countries (United States, Canada, United Kingdom, France, Germany, The Netherlands, and Switzerland), 70% of employees believe pay transparency benefits employee satisfaction and 72% believe it benefits business.
Glassdoor also found that more than a third (36%) of employees don’t have a good understanding of how other people are paid at their place of employment, and women are more likely to have a poorer understanding than men. With pay transparency, we can eliminate the question marks around pay and give employees confidence to ask for what they deserve.
Exploited loopholes in the laws
Unfortunately, some companies in states with pay transparency laws have found a way around it. According to reporting by The New York Times, some companies are taking advantage of a loophole in this law by posting salary ranges that could apply to anyone at their company.
Right now, an administrative assistant job posting at Netflix has a salary range of $55,000–$240,000. This range is so wide that it defeats the purpose of California’s pay transparency laws. The New York Times reported that state and local governments have not come up with a solution to this loophole yet. The hope is that employers will comply because pay transparency motivates applicants to apply and strengthens employee satisfaction.
How to negotiate a salary
While pay transparency laws set the stage, how do you successfully negotiate your salary within that range?
When negotiating, you want your employer to understand what they are paying for — what you bring to the table. If you ask for a higher salary, be prepared to back up that number with evidence that you will bring dedication, expertise and value to the company. Indeed recommends preparing talking points to convince your employer that your value merits the salary you’re asking for. These include detailed points about your previous successes, years of experience in the field, special skills or certificates you’ve earned and relevant data showing salaries for similar job postings that validate your asking wage.
It’s also important to express gratitude and be confident. If the employer isn’t able to offer a salary you’re comfortable with, it might be time to try another company.
Money talk is uncomfortable for many people, but finding a job you love also means negotiating a salary that meets your needs and reflects your value. Pay transparency laws can reduce stress and empower us to ask for what we are really worth. Utah should join the other states making headway in pay transparency. The best economy in the nation should be run by the most satisfied workers who are paid what they deserve.
Otherwise, you might find yourself in the same situation as my friend, all but committing to a job — without knowing the pay.