💲Pay transparency, or ensuring visibility into pay practices, continues to be a hot topic compliance issue. These regulations, which today are managed at a state-by-state level, can be time consuming and confusing to navigate as companies grapple to stay ahead of compliance. While some legislation bars companies from asking prospective employees about their pay history in an interview process, others require disclosure of pay ranges when posting roles on job websites in certain states. SHRM continues its real-time tracking of current regulatory legislation HERE, and on Equal Pay Day in early 2023, released data showing that, among more than 1,300 HR professionals surveyed, 42% of their organizations or more operate in a location that requires job postings to include pay ranges.
❓Why is this important? Legislation promoting visibility within pay practices has only increased as it seeks to remedy pay disparities, address wage discrimination, and ensure equity in the workplace by increasing transparency around how you pay your team.
💡How this affects your team?
$$$: The cost of noncompliance to your team could mean fines, penalties and legal costs if wage discrimination is substantiated.
Reputational damage: Wage discrimination allegations can impact your company's brand, leading to decreased customer trust, investor confidence, and potential loss of business opportunities.
Employee morale and retention: Pay discrimination can negatively impact employee morale and job satisfaction, leading to decreased productivity and increased employee attrition. BuiltIn estimates that losing an employee can cost a company one half to two times the employee’s salary.
🚸 Getting ahead of this:
What to ask yourself:
Audit how and how much you’re paying your team today: Are your pay practices rooted in data and market-tested ranges?
Interview Preparation: Do your people leaders know what they can and cannot ask in interviews?
Have you implemented process and policy safeguards to head off future pay disparity allegations?
Want to see how Sproutwise can take this off of your plate? Find us at info@sproutwise.com.
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