HR Newsletter: Pay Transparency 

HR Newsletter: Pay Transparency

The call from workers for pay transparency and equity has never been louder or more essential than it is today. Pay transparency is the practice of openly sharing compensation information, such as pay rates and salary ranges, with applicants, employees, and sometimes the public; pay equity is the process of reducing salary disparities among workers performing substantially similar work.

Employees value pay transparency and equity because they provide workers with a clear understanding of how their compensation is determined, helping to develop trust with their employer and improve morale, job satisfaction, and overall well-being. They can also empower employees to make more informed career decisions, negotiate competitive wages, and advocate for themselves effectively.

Data from the National Women’s Law Center revealed that more than 1 in 4 workers are currently covered by pay transparency laws—and that number is expected to rise with both Hawaii and Illinois expanding pay transparency legislation in 2024 and 2025, respectively. This indicates that pay transparency is not a passing trend and is likely to increasingly impact employers and employees nationwide over the next few years.

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