Is Practicing Pay Transparency Right for Your Organization?
In today’s work world, candidates expect pay transparency from employers. They want to know what compensation they’ll receive and how that compensation measures up in context among their colleagues.
Here, we explore the benefits and potential challenges of implementing pay transparency in law firms and legal departments. We’ll also provide some quick tips on making pay more transparent.
Pay Transparency: Benefits for Organizations
Implementing transparent pay policies has several benefits for law firms and legal departments. Benefits range from attracting better candidates to complying with applicable laws.
Publishing pay information in job postings helps candidates apply for jobs that fit their salary expectations. Hiring managers spend less time communicating with candidates who expect higher salaries than the organization can offer.
Several US states and cities now require employers to disclose pay ranges during the hiring process. Many have also enacted rules that prohibit employers from asking how much a candidate made in previous jobs. Pay transparency has even gained traction at the federal level – a recently introduced House bill would require all employers nationwide to publish salary ranges in job postings.
Pay transparency rules thus help legal organizations stay compliant with the law and anticipate changes in the future.
Challenges to Implementing Pay Transparency
Implementing pay transparency can pose some challenges, however. One such challenge is collecting the information required to standardize pay scales and express salary ranges. The process of collecting this information can create an undue focus on pay among your team, which can distract them from other work.
A hot job market can also make it harder to include salary ranges in job postings. When skilled employees are in high demand, salary offerings tend to increase. A job posting’s salary range may go from competitive to unrealistically low in just a few days.
A Quick-Start Guide to Making Pay More Transparent
The benefits of pay transparency often outweigh the challenges. To get started on offering transparency in job postings:
- Determine what you’re already paying for comparable work, using payroll data and job descriptions.
- Update job descriptions and job postings as needed to reflect what the job demands.
- Incorporate salary ranges in your job postings.
Need help communicating your offerings to attract the legal talent you need? Consider using a trusted staffing partner.
At Avata Partners, we’re committed to helping our clients in the legal sector find skilled and motivated new hires. Contact our team today to learn more.
