HR leads in pay range transparency: report

New analysis underscores impact of pay transparency laws

HR leads in pay range transparency: report

Human resources has emerged as the top industry with the highest overall transparency rate when it comes to disclosing pay ranges, according to data from Glassdoor.

The data, as analysed by the National Women's Law Centre (NWLC), revealed that 81.4% of HR job listings in US states with strong transparency laws disclosed their pay ranges.

Nearly three-quarters of job listings also disclosed pay ranges even if they were from states with less stringent transparency laws (74.3%) and without transparency laws (74.4%).

On the other hand, the pharmaceuticals and biotechnology had the lowest overall pay range transparency on Glassdoor, with a significant difference between job ads in states that have pay transparency laws and those without.

According to the analysis, 48.6% of job ads in states with pay transparency laws disclosed salary ranges, the analysis revealed.

This is much greater than the number of job ads that disclosed pay ranges in states with less stringent transparency laws (15.9%) and those without them (17.4%).

Pay transparency law analysis

The analysis from NWLC reviewed job listings data between March 2022 and December 2023 to determine the effectiveness of growing pay transparency laws in the US.

It found that states that require salary ranges in job listings resulted in the highest levels of pay disclosure rates across all industries.

But the analysis also discovered that states not requiring pay transparency on job listings were still more likely to have job ads disclosing salary ranges, according to the NWLC.

Emily Martin, NWLC Chief Program Officer, described the ongoing changes as an "exciting cultural shift."

"Pay disparities thrive in secrecy. Providing salary transparency to workers at the outset of job searches helps level the playing field — especially for women and people of colour who are more likely to be short-changed in pay negotiations," she said in a statement.

"Transparency also incentivises employers to evaluate their pay practices and proactively correct pay inequities inside their workplaces. It's a win-win for both workers and employers."

Pay transparency gains momentum

The findings come as the pay transparency laws gain ground across the world.

The European Union in 2023 adopted new rules that include banning pay secrecy in a bid to close gender pay gaps across the region.

In Asia, Singapore employers are also beginning to be more open about their salary offers in job ads as they seek to attract more talent.

In Australia, majority of employers there also believe there are benefits to greater transparency in making salary negotiations easier (65%) and having a positive impact on corporate culture (84%), according to data from Robert Half.

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