State and local pay transparency laws enacted over the last few years have more employers disclosing salary ranges in job descriptions.
Yet, wages aren’t growing as expected. The growth of advertised wages for new hires is slowing, according to a report from job posting service ZipRecruiter — and in some cases, it’s reversing, with companies now posting lower pay ranges.
After two years of increasing wages, some companies are now leaving some jobs unfilled because candidates want more pay than the company is prepared to offer. Still, nearly half, 48%, say they have lowered pay bands for some roles in the past year, ZipRecruiter found. The site surveyed more than 2,000 recruiters and hiring managers this summer.
“Employers are trying to reset candidate expectations,” said Julia Pollak, chief economist at ZipRecruiter.
I don’t think wages should be transparent. There are innumerable factors that go into deciding on a wage. As long as the employer and employee have reached an agreement as to what the wage should be, then it’s nobody else’s business. If I believe that I am being fairly compensated for doing a job, then what business is it of mine if someone doing a similar job makes more? Or less?
I also detest this trend:
In addition to the states and local jurisdictions requiring employers to post salary ranges in job postings, employees have become more open to talking about their pay with their peers.