[Video] The Advantages of Pay Transparency

Part of a series  |  Pay Transparency Series

Female senior team manager meeting with female job applicant

More employers are revealing pay ranges in job postings thanks to changing regulations. As pay transparency becomes more common — how are organizations finding value in their search for top talent?

Above, in this Workforce News Minute, Helena Almeida, vice president counsel at ADP, examines how pay transparency serves as an advantage to both employers and workers.

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Video transcript

Pay transparency is important, and the approach is intended to level the playing field, equalize the information — between employees, between workers, between applicants — so that hopefully these open discussions about pay and how pay is set can shed light on potential discrimination and hopefully help eliminate these discrepancies. I want to give you a few examples of how that happens.

Employers who can't base a job offer on an applicant's salary history are unable to perpetuate potentially discriminatory decisions that were made by most employers. Job applicants who have access to pay range information are in a better position to negotiate their own compensation package as they move forward in their careers.

Current employees who can discuss their wages with their colleagues and with their managers can ask questions about where they fit, what the basis for any pay differences are, and really consider what needs they need, and what their needs are as they move to a new position or a new company.

In general, these laws are based on the idea that more information can help reduce pay gaps overall.