{"id":93107,"date":"2023-02-14T21:56:57","date_gmt":"2023-02-14T19:56:57","guid":{"rendered":"https:\/\/factorialhr.com\/blog\/?p=93107"},"modified":"2025-12-11T23:05:19","modified_gmt":"2025-12-11T21:05:19","slug":"pay-transparency","status":"publish","type":"post","link":"https:\/\/factorialhr.com\/blog\/pay-transparency\/","title":{"rendered":"Here\u2019s how pay transparency is going in 2026"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Pay transparency has been a hot topic of conversation lately. Companies based or operating in a number of states, including <\/span><b>California and Colorado<\/b><span style=\"font-weight: 400;\">, have had to adapt their practices to comply with <\/span><b>recently enacted pay transparency laws<\/b><span style=\"font-weight: 400;\">, many of which came into effect at the start of 2024.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Although this wave of new legislation has met a bit of a rocky start, there\u2019s no denying that <\/span><b>these changes will have a positive impact on US employment practices<\/b><span style=\"font-weight: 400;\">. In fact, according to SHRM, <\/span><a href=\"https:\/\/www.shrm.org\/hr-today\/news\/hr-magazine\/fall2022\/pages\/the-push-for-pay-transparency.aspx\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">79% of employees<\/span><\/a><span style=\"font-weight: 400;\"> are in support of this initiative to improve pay equality. However, despite all this, many employers are still not prepared for pay transparency.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Here\u2019s <\/span><b>everything you need to know about pay transparency<\/b><span style=\"font-weight: 400;\">, including how it\u2019s going so far and how this approach can benefit your business.<\/span><\/p>\n<p><a href=\"https:\/\/factorialhr.com\/request-demo\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" class=\"aligncenter wp-image-86553 \" src=\"https:\/\/factorialhr.com\/wp-content\/uploads\/2022\/11\/18151749\/free-demo-300x103.jpg\" alt=\"free demo\" width=\"798\" height=\"274\" srcset=\"https:\/\/factorialhr.com\/wp-content\/uploads\/2022\/11\/18151749\/free-demo-300x103.jpg 300w, https:\/\/factorialhr.com\/wp-content\/uploads\/2022\/11\/18151749\/free-demo.jpg 675w\" sizes=\"(max-width: 798px) 100vw, 798px\" \/><\/a><\/p>\n<p><b><div class=\"js-toc toc\">\n<p class=\"js-toc-title toc__title\">Table of Contents<\/p>\n<nav id=\"fac_toc_nav\" class=\"js-toc-nav toc__nav\" aria-label=\"Table of Contents\"><ol class=\"toc__list toc__list--level-1\"><li class=\"toc-heading-level-2\"><a class=\"toc__link toc-link-heading-1\" href=\"https:\/\/factorialhr.com\/blog\/pay-transparency\/#pay-transparency-in-2026\" title=\"Pay transparency in 2026\" data-target-id=\"pay-transparency-in-2026\">Pay transparency in 2026<\/a><\/li><li class=\"toc-heading-level-2\"><a class=\"toc__link toc-link-heading-2\" href=\"https:\/\/factorialhr.com\/blog\/pay-transparency\/#pay-transparency\u2019s-rocky-start\" title=\"Pay transparency\u2019s rocky start\u00a0\" data-target-id=\"pay-transparency\u2019s-rocky-start\">Pay transparency\u2019s rocky start\u00a0<\/a><\/li><li class=\"toc-heading-level-2\"><a class=\"toc__link toc-link-heading-3\" href=\"https:\/\/factorialhr.com\/blog\/pay-transparency\/#struggles-of-pay-transparency\" title=\"Struggles of pay transparency\u00a0\" data-target-id=\"struggles-of-pay-transparency\">Struggles of pay transparency\u00a0<\/a><\/li><li class=\"toc-heading-level-2\"><a class=\"toc__link toc-link-heading-4\" href=\"https:\/\/factorialhr.com\/blog\/pay-transparency\/#the-growth-of-compliance\" title=\"The growth of compliance\u00a0\" data-target-id=\"the-growth-of-compliance\">The growth of compliance\u00a0<\/a><\/li><li class=\"toc-heading-level-2\"><a class=\"toc__link toc-link-heading-5\" href=\"https:\/\/factorialhr.com\/blog\/pay-transparency\/#how-comprehensive-helps-with-pay-transparency\" title=\"How Comprehensive helps with pay transparency \u00a0\" data-target-id=\"how-comprehensive-helps-with-pay-transparency\">How Comprehensive helps with pay transparency \u00a0<\/a><\/li><li class=\"toc-heading-level-2\"><a class=\"toc__link toc-link-heading-6\" href=\"https:\/\/factorialhr.com\/blog\/pay-transparency\/#is-pay-transparency-good-for-business\" title=\"Is pay transparency good for business?\u00a0\" data-target-id=\"is-pay-transparency-good-for-business\">Is pay transparency good for business?\u00a0<\/a><\/li><li class=\"toc-heading-level-2\"><a class=\"toc__link toc-link-heading-7\" href=\"https:\/\/factorialhr.com\/blog\/pay-transparency\/#what-employees-think-about-pay-transparency\" title=\"What employees think about pay transparency\u00a0\" data-target-id=\"what-employees-think-about-pay-transparency\">What employees think about pay transparency\u00a0<\/a><\/li><li class=\"toc-heading-level-2\"><a class=\"toc__link toc-link-heading-8\" href=\"https:\/\/factorialhr.com\/blog\/pay-transparency\/#pay-transparency-predictions\" title=\"Pay transparency predictions\" data-target-id=\"pay-transparency-predictions\">Pay transparency predictions<\/a><\/li><\/ol><\/nav><\/div><\/b><\/p>\n<h2><b>Pay transparency in 2026<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Pay transparency isn\u2019t a new concept. In fact, there are around <\/span><b>30 states with some form of pay transparency law in place<\/b><span style=\"font-weight: 400;\">, many of which go as far back as 1945 (the <\/span><a href=\"https:\/\/www.mass.gov\/service-details\/learn-more-details-about-the-massachusetts-equal-pay-act#:~:text=In%201945%2C%20Massachusetts%20became%20the,84.3%25%20of%20what%20men%20earn.\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Massachusetts Equal Pay Act<\/span><\/a><span style=\"font-weight: 400;\">, for example). At a federal level, there is also the <\/span><a href=\"https:\/\/factorialhr.com\/blog\/equal-pay-act\/\"><span style=\"font-weight: 400;\">Equal Pay Act of 1963<\/span><\/a><span style=\"font-weight: 400;\"> which was designed to ensure that all employees receive equal pay for equal work. However, although these laws cover a range of issues relating to pay transparency, most are limited to the <\/span><b>prevention of pay discrimination<\/b><span style=\"font-weight: 400;\"> and <\/span><b>an employee\u2019s right to discuss salaries during job interviews<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Thankfully, this is changing. Increasing numbers of states are now enacting laws that include <\/span><b>salary disclosure and transparent pay reporting<\/b><span style=\"font-weight: 400;\">. 16 states + Washington D.C., in fact, covering a fifth of all U.S. workers. And this figure is growing.<\/span><\/p>\n<h3><b>Pay transparency laws<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The <\/span><b>Colorado pay transparency law<\/b><span style=\"font-weight: 400;\"> was enacted to address salary disparities after research in 2020 highlighted that <\/span><a href=\"https:\/\/www.bls.gov\/opub\/reports\/womens-earnings\/2020\/home.htm\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">women in Colorado earned 86 cents for every dollar men earned, while Latinas earned 53.5 cents and Black women earned 63.1 cents.<\/span><\/a><span style=\"font-weight: 400;\"> The law attempts to address this pay gap by requiring employers to<\/span><b> openly disclose salary or pay ranges for all open positions<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The <\/span><a href=\"https:\/\/factorialhr.com\/blog\/california-pay-transparency-law\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">California pay transparency law<\/span><\/a><span style=\"font-weight: 400;\"> also promotes pay transparency in the workplace. The State\u2019s pay disclosure legislation has one primary objective: <\/span><b>to promote equal and transparent pay for all<\/b><span style=\"font-weight: 400;\">. With this law, the state hopes to build on the existing work it has done to <\/span><b>identify and eliminate wage disparities<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The <\/span><a href=\"https:\/\/factorialhr.com\/blog\/nyc-pay-transparency-law\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">New York pay transparency law<\/span><\/a><span style=\"font-weight: 400;\">, which the city enacted in 2022, has similar objectives. The law requires employers to <\/span><b>disclose minimum and maximum pay ranges in good faith for all jobs, promotions, and transfer opportunities<\/b><span style=\"font-weight: 400;\"> based in New York City.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Several more states have passed similar laws since, including <\/span><b>Washington, and Rhode Island<\/b><span style=\"font-weight: 400;\">. And many more states are in the process of launching new pay transparency laws, including <\/span><b>Massachusetts <\/b><span style=\"font-weight: 400;\">and <\/span><b>South Carolina<\/b><span style=\"font-weight: 400;\">. <\/span><b>It\u2019s only a matter of time before pay transparency becomes the norm in all US states<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h2><b>Pay transparency\u2019s rocky start<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Although <\/span><b>pay transparency is a fantastic initiative that can benefit both employers and employees<\/b><span style=\"font-weight: 400;\">, it has had a rocky start.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Here are some of the<\/span><b> issues that we have seen<\/b><span style=\"font-weight: 400;\"> so far:<\/span><b><\/b><\/p>\n<ul>\n<li><b>Disappearing job listings<\/b><span style=\"font-weight: 400;\"> and a drastic reduction in the number of publicly posted job ads.\u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Listings with <\/span><b>missing salary information<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Open positions listing <\/span><b>meaningless pay ranges<\/b><span style=\"font-weight: 400;\"> (for example, \u201ca pay range of between $0 and $2 million\u201d).<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Confusion relating to the <\/span><b>definition of \u201cgood faith salary ranges\u201d<\/b><span style=\"font-weight: 400;\">. According to the New York City Commission on Human Rights, A \u201cgood faith\u201d range is one the employer \u201c<\/span><i><span style=\"font-weight: 400;\">honestly believes at the time they are listing the job advertisement that they are willing to pay the successful applicant(s)<\/span><\/i><span style=\"font-weight: 400;\">\u201d.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Certain companies have tried to avoid state requirements to disclose pay by <\/span><b>advertising remote, out-of-state positions only<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Issues with reviewing pay scales and <\/span><b>making internal pay adjustments<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li><b>Questions and concerns from existing employees<\/b><span style=\"font-weight: 400;\"> once salaries are disclosed, especially in cases where the nuances of pay scales haven\u2019t been clearly explained.<\/span><\/li>\n<li><b>Tension in the workplace<\/b><span style=\"font-weight: 400;\"> and disgruntled employees.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Violations for <\/span><b>non-compliance<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li><b>Reputational risks<\/b><span style=\"font-weight: 400;\"> when salaries have been disclosed as being uncompetitive or, in worst-case scenarios, unethical.<\/span><\/li>\n<\/ul>\n<h2><b>Struggles of pay transparency<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Let\u2019s take a look at some of the struggles behind pay transparency\u2019s rocky start in a bit more detail. The following are some of the <\/span><b>most common issues that you might encounter when you implement pay transparency in your business<\/b><span style=\"font-weight: 400;\">. We\u2019ll explain which issues might arise, and <\/span><b>how you can overcome them<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h3><b>Exposing salary ranges can impact turnover and performance<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Exposing your salary ranges can <\/span><b>cause issues within your workforce if employees discover that salaries aren\u2019t fairly distributed<\/b><span style=\"font-weight: 400;\">. For example, if there are obvious examples of a <\/span><b>gender pay gap<\/b><span style=\"font-weight: 400;\"> or favoritism then it could have a notable impact on <\/span><b>turnover and performance<\/b><span style=\"font-weight: 400;\">. And if employees share this information publicly then it could negatively impact your <\/span><b>employer brand and recruitment efforts<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The best way to overcome this issue is to <\/span><b>conduct a pay equity audit<\/b><span style=\"font-weight: 400;\"> to ensure that there are no <\/span><b>unfair or unsupported pay gaps or discrepancies<\/b><span style=\"font-weight: 400;\"> in your business. If your employees feel that you are paying them fairly, they will be less likely to quit. They will also be less likely to become disengaged when you disclose your pay ranges.<\/span><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<h3><b>Pay transparency can cause internal conflict if not managed well<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Similarly, if you don\u2019t <\/span><b>manage the process of disclosing salaries in a transparent and informed way<\/b><span style=\"font-weight: 400;\"> then it can cause internal conflict in your organization. For instance, if you are not clear about the way you calculate your pay grades and <\/span><b>how you define higher and lower earners working similar positions<\/b><span style=\"font-weight: 400;\">, then tensions could rise within your workforce.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To overcome this issue, it\u2019s important to <\/span><b>define a clear compensation policy with defined guidelines for your salary ranges<\/b><span style=\"font-weight: 400;\">. Make sure your managers understand how qualifications and experience impact these salary bands. And <\/span><b>train your hiring managers to negotiate salaries within these established guidelines<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Once you publish your data, make sure you <\/span><b>communicate clearly and transparently<\/b><span style=\"font-weight: 400;\"> with all your employees so that they understand <\/span><b>how your compensation policy works and how salaries are fixed<\/b><span style=\"font-weight: 400;\">. You could even hold a Q&amp;A session to address any questions or concerns.<\/span><\/p>\n<h2><b>The growth of compliance<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">One of your most important roles as an HR manager is to <\/span><b>ensure your organization meets all legal requirements established by US <\/b><a href=\"https:\/\/factorialhr.com\/blog\/hr-compliance-laws\/\" target=\"_blank\" rel=\"noopener\"><b>HR compliance laws<\/b><\/a><span style=\"font-weight: 400;\">. That\u2019s why maintaining and following an up to date <\/span><a href=\"https:\/\/factorialhr.com\/blog\/hr-compliance-calendar-2023\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">HR compliance calendar<\/span><\/a><span style=\"font-weight: 400;\"> is so important. It helps you <\/span><b>keep on top of all compliance deadlines so that your company adheres to all standards and legal obligations<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With this in mind, let\u2019s take a look at <\/span><b>how compliance is evolving since the introduction of pay transparency laws<\/b><span style=\"font-weight: 400;\"> including the NYC pay transparency law, the California pay transparency law, and the Colorado pay transparency law.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">According to a report by the Institute for <\/span><b>Women&#8217;s Policy Research<\/b><span style=\"font-weight: 400;\">, only <\/span><a href=\"https:\/\/iwpr.org\/wp-content\/uploads\/2020\/09\/Q068-Pay-Secrecy.pdf\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">17% of private organizations claimed that wage and salary information was public<\/span><\/a><span style=\"font-weight: 400;\"> in 2017. However, according to <\/span><b>Willis Towers Watson<\/b><span style=\"font-weight: 400;\">, <\/span><b>this figure has risen sharply since the introduction of recent pay transparency laws<\/b><span style=\"font-weight: 400;\">. In fact,<\/span><a href=\"https:\/\/www.wtwco.com\/en-US\/News\/2022\/09\/more-north-american-organizations-plan-to-disclose-pay-information-survey-finds#:~:text=In%20addition%2C%2062%25%20of%20organizations,former%20and%2048%25%20the%20latter.\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\"> 62% of organizations now claim to be planning to disclose pay rate information in the future<\/span><\/a><span style=\"font-weight: 400;\">. And this doesn\u2019t just apply to states like California and Colorado where it is a legal requirement. According to WTW\u2019s 2022 Pay Clarity Survey, <\/span><b>17% of companies are already disclosing pay range information in U.S. locations where not required by state or local laws<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">According to Zippia, the number of <\/span><a href=\"https:\/\/www.zippia.com\/advice\/pay-transparency-laws-by-state\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">job listings with salary ranges in the U.S. increased from 8% in 2019 to 12% in 2022<\/span><\/a><span style=\"font-weight: 400;\">. Moreover, <\/span><b>pay transparency laws have reduced the gender pay gap by 20-40%<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<\/ul>\n<p><a href=\"https:\/\/factorialhr.com\/templates\/2023-hr-compliance-calendar\" target=\"_blank\" rel=\"noopener\"><img decoding=\"async\" class=\"aligncenter wp-image-89104 \" src=\"https:\/\/factorialhr.com\/wp-content\/uploads\/2020\/03\/22155111\/compliance-cal-freebie-300x300.jpg\" alt=\"hr compliance calendar\" width=\"424\" height=\"424\" srcset=\"https:\/\/factorialhr.com\/wp-content\/uploads\/2020\/03\/22155111\/compliance-cal-freebie-300x300.jpg 300w, https:\/\/factorialhr.com\/wp-content\/uploads\/2020\/03\/22155111\/compliance-cal-freebie-150x150.jpg 150w, https:\/\/factorialhr.com\/wp-content\/uploads\/2020\/03\/22155111\/compliance-cal-freebie-160x160.jpg 160w, https:\/\/factorialhr.com\/wp-content\/uploads\/2020\/03\/22155111\/compliance-cal-freebie-80x80.jpg 80w, https:\/\/factorialhr.com\/wp-content\/uploads\/2020\/03\/22155111\/compliance-cal-freebie.jpg 525w\" sizes=\"(max-width: 424px) 100vw, 424px\" \/><\/a><\/p>\n<h2><b>How Comprehensive helps with pay transparency <\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h2>\n<p><b>So how can you keep track of market pay ranges? How can you ensure that your salaries are fair and competitive?<\/b><span style=\"font-weight: 400;\"> How can you avoid potential issues and disputes when your salaries are published publicly as a result of the pay transparency laws?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Well, if you work in the tech industry then there\u2019s already a great solution for this.<\/span><\/p>\n<p><a href=\"http:\/\/comprehensive.io\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Comprehensive.io<\/span><\/a><span style=\"font-weight: 400;\"> is a recently launched website that <\/span><b>tracks and publishes tech salary ranges daily<\/b><span style=\"font-weight: 400;\">. The aim of the site\u2019s founders, Roger Lee and Teddy Sherrill, is to <\/span><b>advance pay transparency and eliminate pay inequity<\/b><span style=\"font-weight: 400;\">. You can use the site to look up the salary ranges that similar companies are posting for similar roles. This can give you a better idea of <\/span><b>the salary structures you should be following in your business<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To achieve this, Comprehensive collects job posts from over 700 tech companies and extracts salary ranges daily. Comprehensive also provides users with <\/span><b>pay transparency compliance rates for California and New York City<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<h2><b>Is pay transparency good for business?<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The most obvious advantage of pay transparency is that it promotes <\/span><b>pay equity and fair hiring practices<\/b><span style=\"font-weight: 400;\">. And this is a big plus for both employers and employees.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, the benefits don\u2019t stop there. In addition, pay transparency is a part of DE&amp;I initiatives to create positive workplaces and foster an inclusive atmosphere. It&#8217;s becoming more important for candidates and future employees to see companies disclose salary ranges which could lead to an increase of candidates and higher quality of applicants.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Here are a few more reasons why<\/span><b> pay transparency can give you a competitive edge<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h3><b>Streamlines your recruitment process<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Many organizations find that <\/span><b>one of the hardest parts of writing job descriptions is aligning skills and qualifications with the right salary bracket<\/b><span style=\"font-weight: 400;\">. You need to make sure that you offer <\/span><b>a fair salary in exchange for the skills that you are looking for<\/b><span style=\"font-weight: 400;\">. You also need to ensure that the salary you offer is <\/span><b>in line with market averages<\/b><span style=\"font-weight: 400;\">. And this means that you need to do a lot of research.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you <\/span><b>conduct a pay audit and clearly define your salary ranges<\/b><span style=\"font-weight: 400;\"> in advance, then it is much easier to do all this. And this can help the recruitment process run much more efficiently. Plus, with clear guidelines for salary ranges, <\/span><b>your hiring managers will know exactly what limits they need to stick to when they negotiate salaries with new hires<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h3><b>Helps you attract top talent<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Job seekers these days are looking for <\/span><b>honesty and transparency<\/b><span style=\"font-weight: 400;\">, especially in terms of salary and benefits. Employees want to work for <\/span><b>fair and ethical companies; for organizations that will provide them with a positive working environment<\/b><span style=\"font-weight: 400;\">. This is especially true in the case of Generation Z. In fact, studies have shown that <\/span><a href=\"https:\/\/joinhandshake.com\/network-trends\/gender-equity\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Gen Z candidates are more likely to apply for a job if they see a salary range<\/span><\/a><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As a result, promoting yourself as an equal opportunities employer that values pay transparency can be <\/span><b>a great way to attract candidates and build a strong talent pipeline<\/b><span style=\"font-weight: 400;\">. It gives you a competitive advantage and access to a much wider pool of candidates.<\/span><\/p>\n<h3><b>Enhances equity and diversity efforts<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Pay transparency can be a great tool for enhancing your equity and diversity efforts. Disclosing your salaries can show the world that you are an <\/span><b>equal opportunities employer<\/b><span style=\"font-weight: 400;\"> and that you <\/span><b>pay your employees in line with the skills and qualifications that they can offer, not their gender, age, or race<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It\u2019s not a direct route to success. However, including a <\/span><b>pay transparency statement<\/b><span style=\"font-weight: 400;\"> in your company\u2019s published values can be a great way to <\/span><b>boost your employer brand<\/b><span style=\"font-weight: 400;\"> as a fair and equitable organization.<\/span><\/p>\n<h3><b>Boost retention<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Most employees value <\/span><b>opportunities for growth and development<\/b><span style=\"font-weight: 400;\">. When you define clear guidelines for how you pay employees and which skills and qualifications would qualify them for a payrise, it can be <\/span><b>a great incentive to stay at the company<\/b><span style=\"font-weight: 400;\">. Employees can see <\/span><b>a clear path for progression.<\/b><span style=\"font-weight: 400;\"> They understand what they need to work on in order to rise up in the company. And this can have a direct impact on your retention levels.\u00a0<\/span><\/p>\n<h3><b>Increases performance and job satisfaction<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Pay transparency also has a positive effect on <\/span><b>how your workforce perceives you as an employer<\/b><span style=\"font-weight: 400;\">. If an employee feels you are paying them fairly, they will feel <\/span><b>valued and appreciated<\/b><span style=\"font-weight: 400;\">. And this can have a <\/span><b>positive impact on job satisfaction, engagement, and performance<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h3><b>Helps you build a culture of trust and transparency<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Finally, pay transparency can help you build a culture of trust and transparency. When employers are open about their compensation policies it <\/span><b>builds trust between employees and managers<\/b><span style=\"font-weight: 400;\">. And this is essential for nurturing <\/span><b>an environment of collaboration, communication, and innovation<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In contrast, <\/span><b>if you are secretive about your salaries then it can lead to speculation and suspicion<\/b><span style=\"font-weight: 400;\">. Employees might wonder if you are paying them fairly. Or if you are giving one of their colleagues preferential treatment. And this can have a <\/span><b>negative effect on employee relations and morale<\/b><span style=\"font-weight: 400;\">. If the culture of mistrust spreads, then you could find yourself with a <\/span><b>demotivated and unproductive workforce<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><iframe title=\"New US Laws: Is Pay Transparency Effective?\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/qeKCV_N-nX4?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<h2><b>What employees think about pay transparency<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">So, what do employees think about pay transparency? What feedback have they shared since states like California enacted the law?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You probably won\u2019t be surprised to find out that <\/span><b>the vast majority of employees support pay transparency<\/b><span style=\"font-weight: 400;\">. They believe that it promotes fairness and equality. That it\u2019s not just desirable &#8211; it\u2019s necessary. Much of this is down to the effects of<\/span><b> #MeToo and Black Lives Matter<\/b><span style=\"font-weight: 400;\">. Employees want to work for <\/span><b>fair, ethical, and transparent organizations that promote equal opportunities for all<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Here are a few statistics to demonstrate just how strongly employees feel about pay transparency:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">According to Monster, <\/span><a href=\"https:\/\/hiring.monster.com\/resources\/blog\/workers-want-pay-transparency\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">98% of surveyed employees are in favor of employers disclosing salary ranges in job postings<\/span><\/a><span style=\"font-weight: 400;\">. Moreover, 53% would not apply for a job that doesn\u2019t disclose pay scales.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Most employees believe that recent salary disclosure laws will have a positive impact on the future of work. They believe that pay transparency will help in the fight against the racial and gender pay gap. What\u2019s more, compared to only 47% of Gen X, <\/span><a href=\"https:\/\/www.linkedin.com\/pulse\/boomers-hate-talk-pay-81-gen-z-welcomes-full-candor-george-anders\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">81% of Gen Z workers believe that disclosing their salaries will lead to more pay equality<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/li>\n<\/ul>\n<h2><b>Pay transparency predictions<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Let\u2019s finish today\u2019s post by looking at a few pay transparency predictions.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><b>More pay transparency laws will be passed in 2023<\/b><span style=\"font-weight: 400;\">. Massachusetts is already poised to sign off on its own law, and South Carolina and New Jersey aren\u2019t far behind. We believe that this trend will continue as more states see the benefits that pay transparency can offer.\u00a0\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>Employers in states without pay transparency laws will begin disclosing salaries without any legal obligation<\/b><span style=\"font-weight: 400;\">. This is especially true in the case of businesses that operate in multiple states.<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>Employees will become more comfortable with discussing salaries and they will begin demanding fair and equitable pay<\/b><span style=\"font-weight: 400;\">. As a result, companies will have to review their salary practices in order to stay competitive.<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>Pay transparency laws will drive greater pay equity<\/b><span style=\"font-weight: 400;\">. This will have a direct impact on existing wage gaps in the US.\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Whether your state has already enacted a pay transparency law or not, now is the time to act. Implement policies and strategies that demonstrate your commitment to pay equity and transparency. This will help you <\/span><b>gain a competitive edge and attract top talent to your business<\/b><span style=\"font-weight: 400;\">. As we said at the start of this post, <\/span><b>it\u2019s only a matter of time before pay transparency becomes the norm in all US states<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Pay transparency has been a hot topic of conversation lately. Companies based or operating in a number of states, including California and Colorado, have had to adapt their practices to comply with recently enacted pay transparency laws, many of which came into effect at the start of 2024.\u00a0 Although this wave of new legislation has<a href=\"https:\/\/factorialhr.com\/blog\/pay-transparency\/\" class=\"read-more\"> [&#8230;]<\/a><\/p>\n","protected":false},"author":80,"featured_media":93108,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[146],"tags":[],"class_list":["post-93107","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-legal-hr"],"acf":{"topics":"payroll"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.5 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Here\u2019s how pay transparency is going in 2026 | Factorial<\/title>\n<meta name=\"description\" content=\"Update on how the pay transparency laws in the US are progressing and how pay transparency can benefit your business. 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