Recent data from Indeed showcases a significant shift in U.S. job listings, with 50% of postings now disclosing employer-provided salary information—the highest proportion ever recorded. This substantial increase in salary transparency was only about 10% in 2019 but surged during the pandemic, accelerating from around 30% in 2022. Experts highlight that this uptick is largely attributed to pay transparency laws adopted by several states, aiming to offer visibility and fairness in pay information to job seekers. According to Mariann Madden from WTW, these laws are effectively achieving their intended objective.
Cory Stahle from Indeed Hiring Lab notes that divulging pay details in job postings can foster trust, attract talent, and potentially contribute to closing gender and racial pay gaps. The rise in pay transparency laws and the perceived benefits have influenced this trend.
Many states and localities now prohibit employers from seeking salary history from applicants and mandate revealing pay ranges for positions. Indeed is actively working toward including salary ranges in all U.S.-based job listings, aiding candidates in making informed decisions. While pay transparency rates are increasing across the nation, variations exist among states and regions. Western states tend to offer pay details more frequently than southern ones, with Colorado leading at 81% and Mississippi recording the lowest at 33% of job ads featuring pay information.
Metropolitan areas in states with pay transparency regulations witnessed rapid growth in job ads with salary details. Notably, areas like New York City experienced significant rises from 31% to 58% in pay disclosure between August 2022 and August 2023.
Madden finds it promising that employers are voluntarily disclosing pay ranges even where not legally mandated, providing job seekers with essential information for informed career decisions. Regarding the future of this trend amidst a softening labour market, experts have varying perspectives. Stahle questions whether employers might retract salary information if hiring becomes easier, while Madden remains optimistic, citing the continuous introduction of pay transparency laws at various governance levels.
Looking ahead, Madden anticipates potential initiatives for public pay gap reporting or transparency about criteria used in pay decisions. The collective goal remains clear: ensuring employers offer equitable pay and career opportunities to all, aligning with the interests of lawmakers, investors, unions, regulators, employees, and job seekers.
