Are Insurance Companies Ready To Post Their Salary Ranges in All Job Postings?
In May of this year, New York City requires all employers who post jobs to add in their salary ranges (National Law Review). This new law will be considered "an unlawful discriminatory practice" for an employer to advertise a job without a minimum and maximum starting salary. The name of this movement is called "pay transparency. The goal of adding compensation details to all job postings is to set a clear path to equal pay for men and women in the same job.
This is a fascinating topic. When employers post jobs, they hope to get enough applicants with the "must have" skills needed to be a top performer. A compelling job title and job description get excited supercharge applications for qualified job seekers. If you don't have a stated compensation, you will get all experience levels for your job, with some already making well over your best offer.
While this may be a waste of time, these applicants could become great referral sources. If you add the salary range to all job postings, you may limit your candidate pool for people already at the top end.
Twenty-one states have already banned companies from asking applicants' salary history (Florida isn't one of them). In these states, adding salary ranges to job postings is important so employers can feel comfortable giving an offer within their range without having the applicant get disappointed on a lower than expected offer.
We do not have any of these laws in Florida, but we will one day. Here are some pros and cons:
PRO (add compensation to all job postings):
- Job seekers know exactly what to expect when they apply for a job.
- It will tighten up job descriptions for the "must haves" to get the maximum salary.
- Companies with above-average pay structures may gather a competitive advantage over competitors.
- Employers may also include all benefits to help bolster the salary ranges.
- Company may expand salary ranges making it hard to decipher what they are paying.
- Companies don't want to give up valuable compensation information to their competitors.
- Current employees may see the posting and feel underpaid.
- People may not apply thinking they are over the pay grade.
- Current employees may leave to go to competitors that are paying more.
This is a very touchy subject for many employers.
Jobs with complicated pay structures that are constructed to attract and retain employees would be tough to add to a job posting. In New York City, all the financial institutions are giving colossal pushback on disclosing their compensation ranges. Colorado, where they have a similar law, requires anyone posting a remote job in Colorado to include salary if the person is working from that state.
Bottom line, for human resource departments that are already trying to deal with post-pandemic issues, the great resignation and lack of applicants, adding salaries to job postings adds more work with an intended outcome that is yet to be determined.
I have no problem with adding salaries to job postings.
I don't think that ever solves the intended issue of pay equality. More time should be spent making sure your jobs have a concrete marketing plan behind them (don't just use Indeed) that casts a wide net on all possible diversified talent. Employers are just looking for skilled people who can do the job and not be a freak. No matter if they are female or male, you can't make a great offer soon enough.