The rate will continue to climb as New York’s statewide salary disclosure law goes into effect this week.
Published Sept. 19, 2023 By Carolyn Crist
Half of U.S. job postings listed on Indeed in August included at least some employer-provided salary information, which is the highest percentage recorded on the site so far, according to a Sept. 14 report from Indeed’s Hiring Lab.
In New York, 61% of August job postings featured some type of pay transparency, nearly double the 31% from the year before. The percentage is expected to increase since new salary disclosure rules took effect on Sept. 17.
“Providing pay information in job postings can be a way for employers to build more trust with their employees, attract new workers and may potentially help close gender and racial pay gaps,” Cory Stahle, an economist at Indeed’s Hiring Lab, wrote in the report.
“These and other perceived benefits, paired with growing public support, have motivated salary disclosure laws in several states and a rise in pay transparency in recent years,” he wrote.
Overall, the share of postings with pay transparency information has nearly tripled from 18% in February 2020 to 50% in August 2023, and it’s likely to grow in coming months, according to the report.
Pay transparency trends vary by region and state. In general, employers in the West provide pay details at the highest rates, while those in the South tend to have the lowest rates. In August, Mississippi had the lowest rate, with 33% of job listings featuring details about pay, while Colorado had the highest rate, with 81% of postings featuring salary information. Stahle called this “perhaps unsurprising” since Colorado implemented pay disclosure laws in January 2021, which is the longest time period for states with similar laws in place.
Similarly, pay transparency rates tend to be higher in and have grown more in metro areas subject to pay disclosure laws. For instance, 11 of the top 15 metro areas with the largest growth in transparency are in California, with San Jose leading the way, jumping from 29.9% in August 2022 to 73.2% last month.
Pay transparency rates will continue to increase through the rest of this year as new laws go into effect. HR Dive maintains a running list of states and local governments that require employers to disclose pay or pay ranges.
Employer pay strategies are placing a higher priority on pay transparency and equity, according to a recent Payscale report . Initiatives focused on fair pay and transparency have become central to employee experience, sources told HR Dive.
At the same time, pay transparency may inject awkwardness or frustration into the hiring process, especially for current employees who may see their roles listed for higher salaries. Employers should be prepared to answer questions, discuss goals of equity and parity and create policies around salary ranges and raises.
