Transparency, Why? The Question should be Why Not?
By Jill Carelli
Business Development Manager – USA Motor Jobs
Browsing through some articles, I came across an eye-catching topic and something completely valuable to job seekers and employees alike, TRANSPARENCY! Since this is a huge trigger for me as I have seen this happen so many times. Under a new law passed by the New York City Council, which will go into effect in May 2022, employers in New York City will have to include the minimum and maximum starting salary for any "advertised job, promotion or transfer opportunity."
“People do not quit jobs, they quit Leadership…”
For people who have been searching endlessly for a new job it will really take things to a new level. When companies leave out salaries or do not discuss upfront, this can lead to hours, days and even months of wasted time. To add insult, job seekers may have passed on other offers if a company is not upfront. The new law will stop companies from holding back and only “offering” what a job seeker is asking, slightly above what they are currently making, or taking advantage of because they are unemployed. Many companies will wait to hear salary requirements, then make an offer, WHY? Because they want to save a few bucks, only costs them more money in the long run when people leave – search for candidates, down time, and training – People do not quit jobs, they quit leadership!
The current industry encourages job hopper
Think about this, a person that is a “job hopper” typically will make MORE, than someone who has been with a company for a longer period of time. The employee who has tenure tends to “live” with what they get in raises and bonus since they have stability. Now, the same company is doing well, everyone gets a great big 10% bonus based on their salary – do the math. Some say the employee that has been there longer gets other benefits that outweigh the difference. Do they really? One or two more weeks of vacation, maybe but soon the new employee will get the same since the company will have to be competitive with others offering more PTO. PTO, thank you for mentioning, NYS passed a law that went into effect September 2020, all employees are allotted 40 – 56 hours of sick/PTO time based on accrual, or they can load up front in January 2021. Immediately, someone who waited a year is now faced with the fact they are NOT getting another week, they in fact have the same as the person who just started. The law is written if a company has an existing PTO policy, they do not have to add additional hours, if they are meeting the 40 – 56 hours, since they already abide by the new law by providing PTO. Let that sink in, they DO NOT have to issue any more time off.
There are millions of jobs available and people to fill them, this new law will force companies to bridge the wage gap within as well. It will benefit all current employees. As companies in NYC are going to be required to let it all hang out, they will have to face some tough questions. In my opinion this will ultimately change the game in wage discrimination. It is going to put some ownness back on companies to right the wrongs of the past and move into a better, more efficient, and stronger workforce. It is proven that transparency is a motivator. On the flip side, job seekers and newly employed individuals, you better be on you’re A Game! With this new law, employers will start cutting strings sooner and especially with employment-at-will states.
Other states should follow soon
Again, this is NYC only, for now. California and Colorado have already enacted the new transparency law. I believe other states will follow soon, especially in light of the recent pandemic that has forced so many out of work and has allowed companies to “right-size” and reinvent how they do business. NYS does already follow the rule that companies cannot ask for salary history.
Council member Helen Rosenthal said of the new law, “Lack of salary transparency is discriminatory and anti-worker.” Rosenthal continued, “Every New Yorker should have the right to determine whether they will be able to support themselves and their family when they apply for a job. It is time to level the playing field and restore some dignity to New Yorkers seeking employment.”
“Lack of salary transparency is discriminatory and anti-worker.”
Job seekers will be able to go into an interview knowing their worth and that they choose to interview knowing the salary. It takes the guessing game and back and forth of disparity from person to person out of the mix. They job seeker and current employees can choose to be where they are and where they are going vs feeling as if there are no options.
Companies will be forced to really hold everyone to the same standards, and this will also make up for some of the Human Resource nightmare that they face. If you are on the up and up, salaries are based on skills, knowledge, training, etc. you should not be worried and never have to put yourself in a position to have to say, “SHHHHH, do not tell anyone your salary. You know you are making more than some of my senior managers.” That sets such a negative tone, who is to say you won’t be referring to them next time someone is hired. Set the standard high, for current and new employees, expect the best from them, be transparent and you will see productively increase, morale, customer satisfaction and ultimately the bottom-line increases.
