In January 2023, California enacted the Transparency Pay Law according to which, “employers include the pay scale directly in the job posting.” People looking for work can see exactly what is being paid for the position they are applying for. Is this a game changer or something that should be clear for any position? An attorney once told me that the reason employment laws like this are put in place is due to a major issue. Most likely, the problem is that employees come in with one understating of the pay and are sold another.
Companies want to save money on labor – people – and some are notorious for the old bait and switch routine. We call it the “car dealer mentality.” You wait until the end of the negotiation only to find that they are selling something that you were not expecting. Now not all companies are like this, and it is not right to generalize, but new laws have been enacted to stop such practices.
Pay validates the way people feel about their jobs. There is power in #negotiation , but when the tactics become anti-productive, we have an unmotivated #workforce . People start to work more for themselves than for the good of the company.
As employers, it is best know the numbers; also making projections for inflation, bonuses and employee appreciation as well as retention. Relating these numbers to management and letting our team know that this is the defined budget for the new person being hired; being honest and upfront about expectations and compensation.
For their part, job seekers should feel comfortable asking questions regarding the compensation package both now and three years ahead. In the end, everyone should be prepared to walk away. There is no use working for an organization, where the business does not see the value in its people.
There is truth in transparency.
By Dane Flanigan
A Friday night bad habit had my tastebuds struggling to fight the urge for a cheeseburger, animal fries, and large strawberry shake. So, I dodged the drive-through line and decided to order at the counter of my local In and Out. I was sitting on a bench, waiting for them to call out my number when I took the machine operation. From ordering to cooking, the production process was tremendous; I could not believe how many people worked there. Aren’t we in work shortage, I thought? Especially in the food and beverage industry, there have been great staffing shortages because of the pandemic. But this In and Out was buzzing with people and atmosphere.
In and Out is known for paying workers on a higher pay scale, specifically their management. They are among the highest paid in the fast food industry and the best benefits. Pay matters! For someone in high school, a dollar or two more makes a big difference. For someone supporting a family, it is stressful to work a job, where you are not well compensated.
This enterprise has a winning environment. Have you ever been to a place where the staff is yelling at each other. Well, it is the last place you want to be. A positive work environment is key to success, one where people are always having fun, and customers want to stay and come back. This is an essential but sometimes forgotten element of customer service.
Always Hiring is the sign on the door. As I came into and exited the place, I saw that both had “Now Hiring” signs for $$ per hour. It was a direct advertisement for people in the neighborhood looking for work. As a recruiter, I cannot imagine that a high-volume establishment like this has heavy turnover. Sure, most restaurants do, yet you don’t always see signs encouraging people to come in and apply. Marketing is key.
Staffing starts with people; that’s why they have a department called human resources. The people dealing every day with customers should be compensated fairly. The environment they work in should be filled with positive energy. we should always be looking to add good people to the organization.
Dane Flanigan CEO