Starting Tuesday, November 8th, NYC will be the most recent area to require companies to list the minimum and maximum salary range for a job on any printed or online posting.
To find out how workers feel about salary transparency laws, in November, ResumeBuilder.com surveyed 1,200 American workers.Key findings include:
- 88% of workers will demand to know the salary range for their current position, if permitted by law; 68% will demand the highest end of known salary range
- 1 in 20 workers would quit if it’s revealed co-workers earn more money; 63% would demand equal pay
- 85% say they’re more likely to apply to job that lists a salary range
- 42% say the salary ranges companies list should be limited
- 63% worry salary transparency will cause problems among co-workers
- 92% of workers support salary transparency laws; 61% say laws will improve wage gap
7 in 10 will demand highest end of salary range
If permitted by law, 88% of workers say they would demand to know the salary range for their current position.
For those who don’t currently know the salary range of the position they are in, if they found out what that range is, 68% ‘definitely would’ (23%) or ‘probably would’ (45%) demand the highest end of the range.
“Employers realize that many candidates will look to the top of the salary range provided and will pursue that salary,” says Stacie Haller, career counselor and executive recruiter.
“The top salary, however, is for candidates who check every box on the job descriptions or possibly exceed the requirements with their experience. Candidates need to understand this when negotiating so they don’t inadvertently take themselves out of the running if they are really willing to accept a lower salary. It remains to be seen if companies will list salary ranges in good faith and how candidates will use this information.”
4% will quit if revealed co-workers earn more money
Knowing the salary range of their position is not the only information that will lead workers to make demands.
If they find out their co-workers are making more money to do the same job, they are likely to take action.
When asked how they’d most likely react to finding out this information, 4% say they would quit, 9% would take legal action, and 63% would demand a raise that gives them equal pay.
Only 17% say that they would take no action at all, and 7% say they would take an action other than what was listed.
85% say they’re more likely to apply to job that lists a salary range
When looking for a new job, workers highly appreciate pay transparency.
The vast majority of workers say they are ‘much more likely’ (58%) or ‘a little bit more likely’ (27%) to apply to jobs that list the salary range in the job description.
However, this information won’t necessarily stop workers from applying to jobs where the salary range is outside of their expectations. Although 44% say they’re unlikely to apply to jobs that list a salary range that doesn’t meet their expectations, 42% are still ‘somewhat likely to apply’ and 14% are ‘very likely to apply.’
42% say the salary ranges companies list should be limited
Although the majority of workers are in favor of companies listing salary ranges on job descriptions, they are split on whether or not there should be parameters to that range.
If a company is required by law to list a salary range for a particular position, 43% say that range should be limited, while 58% say the company should be able to provide any range, no matter how wide.
For those who would like to see that range limited, 58% say the top of the range should be no more than 20% higher than the bottom of the range, while 13% say the top of the range should be less than 10% higher.
According to Stacie Haller, the way salary ranges are listed will likely need to evolve as time goes on.
“Displaying a very wide salary range does not help anyone. The variance will likely be unreasonably explained away by companies that will state the position is simply open to a variety of applicants at different career stages. By doing this companies may intentionally or not be allowing for further wage gaps. A wide range is also a turn off for candidates who may feel the company is not listing the range in good faith.”
63% worry salary transparency will cause problems among co-workers
Overall, 92% of workers support salary transparency laws. Sixty-one percent say these laws will improve wage gaps, 58% say they will make it easier for job applicants, and 47% say they will boost transparency.
However, 63% do fear it will be problematic to know how much their co-workers make. Overall, 22% say it would be ‘very problematic,’ while 41% say ‘somewhat problematic.’ On the other hand, 26% don’t think it would be very problematic and 11% don’t think it would be problematic at all.
Dennis Consorte, small business consultant, isn’t surprised many workers are concerned about how salary transparency will impact their relationships with co-workers.
“Of course salary transparency will cause problems among co-workers. Many people will feel jealous or cheated. These feelings may overpower the way that they interact with other people on the team, and they may even find themselves “quiet quitting” because they feel undervalued. Companies could see more resignations and terminations.”
Overall, Consorte warns that salary transparency laws may sound good on the surface, but they may also lead to a slew of problems, including businesses moving to areas with less regulation and fractured company cultures.
All data found within this report derives from a survey commissioned by ResumeBuilder.com and conducted online by survey platform Pollfish. In total, 1,200 American adults were surveyed.
To qualify for the survey, each respondent had to work remotely full-time. Appropriate respondents were found via a demographic screening question. All respondents had to be 18+ and currently employed for wages.
This survey was conducted on November 2, 2022. All respondents were asked to answer all questions truthfully and to the best of their abilities. For full survey data, please email [email protected]