Pay Transparency Includes More Than Just a Salary
More states are passing pay transparency laws that require businesses to disclose salary information to employees or job candidates upon request. This is good news for job seekers, as it allows them to better understand their potential earnings and negotiate fair pay. However, these laws have also introduced a new set of challenges for business leaders, particularly when it comes to promoting a total rewards package.
In this blog, we will explore how employers can adhere to pay transparency laws while improving total rewards marketing. But first things first – pay transparency laws vary by state, so, business leaders should be sure they understand the unique requirements for the state(s) in which they do business.
One of the biggest challenges for business leaders when it comes to pay transparency is the need to promote a total rewards package to potential employees. Because while salary is certainly a key factor for candidates, it’s not the only thing they consider when deciding whether to accept a job offer. A 2018 study determined that employees value workplace benefits 4-to-1; 80% of those surveyed would accept a job with benefits over an identical job with a 30% higher salary but no benefits. Effectively communicating a total rewards package including health insurance, retirement plans, and time off – especially when delivered as a succinct and aesthetically pleasing digital offer – goes a long way in attracting top talent in the current job market.
So how can businesses adhere to pay transparency laws while also promoting total rewards? One strategy is to provide transparent and detailed information about total rewards packages to job candidates, including information about salary, traditional benefits and more unconventional perks like work-from-home options, subsidized gym memberships and unlimited PTO. This can help candidates understand the full value of the job offer and make it easier for them to compare multiple offers – plus it gives them insight into company culture and values. Pay transparency laws dictate that businesses provide salary ranges rather than specific salary figures, which can help protect against pay disparities while still providing transparency.
Business leaders must also consider how to manage current employee sentiments about their compensation in comparison to colleagues or posted opportunities within similar roles and/or industries. If pay transparency laws reveal current employees are earning significantly less than others, it may lead to resentment. Because of these changes, it’s more important than ever for businesses to effectively communicate their total rewards package to their current employees in addition to potential new hires.
Effectively marketing and highlighting benefits such as health insurance and flexible work arrangements, as well as less tangible incentives like opportunities for professional development and a positive company culture, can help businesses stand out in a hyper-competitive job market, and could very well be what tips the scale in favor of landing the best candidate.
Our Total Rewards marketing platform makes it easy to present, communicate and market the true value of your total rewards package to current and prospective employees. Try it for free and see for yourself how you can attract and retain top talent by communicating the complete value of compensation – salary, benefits, perks and the unique values inherent to your workplace.