The age of pay transparency has arrived: Here’s how salary disclosures have impacted hiring Most employers are now including salary information on all of their job postings, but not without causing some friction among current employees.

 Legislators are increasingly mandating that employers disclose wages in their job postings. To gain insight into the impact of pay transparency on recruiting and hiring efforts, ZipRecruiter conducted a survey of 2,000 hiring managers and recruiters in the United States. Here are some key findings:

1. Prevalence of pay transparency: 72% of employers reported posting salary information on all job postings. Additionally, 18% stated that they only disclose pay in states where it is required, while 10% do not disclose pay at all. This is a significant shift from the past when only 20% to 30% of job postings included pay information.

2. Recruitment benefits: Three-fourths of employers agreed that pay transparency helped in attracting top candidates, and 61% said it made the recruitment process more efficient. Furthermore, job postings that include pay information received an average of 50% more applications.

3. Internal dynamics: 44% of employers noted that pay transparency led to tension among existing employees. Additionally, 44% expressed concerns that posting pay information would limit their ability to negotiate with job candidates.

4. Lower baselines: About 48% of companies admitted to resetting pay downward as a result of pay transparency. This trend was more prominent among small- and medium-sized businesses (50%) compared to larger companies (38%). In addition, 41% of employers reported that positions had remained unfilled in the past six months because job candidates expected higher pay.

Julia Pollak, chief economist at ZipRecruiter, highlights that maintaining competitive pay ranges remains crucial for attracting top talent. The survey findings suggest that pay transparency has become standard practice, but employers must strike a balance to address the concerns of both existing employees and prospective candidates.  

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