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