Why your business should put the salary in the job description
The 2017 Oregon Equal Pay Act helped the state take steps towards pay equity, but discussions around pay transparency, especially when led by companies and organizations, can be a powerful tool in closing the pay gap. Given shifts in workplace perceptions in the wake of the global pandemic, companies must adapt to retain and attract talent.
One of the first steps to establishing a culture of pay transparency is including salary information in the job description. While Oregon is not currently one of the four states that have legislation requiring upfront disclosure, Portland businesses can––and should––lead the way.
How would my company benefit?
Is the thought of bringing salary transparency to your company an uncomfortable one? Do you believe in maintaining negotiating power over candidates and employees? Adopting practices that diverge from the status quo will always have some level of risk involved. But there are also significant benefits to pay transparency that go beyond compliance:
A stronger talent pool. It can take a jobseeker weeks, months, or even years to find the right opportunity. This can be for a number of reasons, including drawn-out interview processes where salary is not disclosed until the offer stage. By providing salary information upfront, candidates can be more selective and intentional in their search.
Increased employee retention. A commitment to pay transparency practices promotes honesty and trust, enabling employees to feel valued. This in turn leads to increased engagement, productivity, and retention, in addition to the likelihood of recommending the company to others as a place to work.
Customer loyalty. Along with promoting trust internally, a demonstrated commitment to pay transparency promotes trust, engagement, and loyalty among your customer base.
How can my company establish a culture of pay transparency?
Below are some questions to consider as you assess how your company may already be enacting pay transparency practices. Hiring a consultant to apply an equity lens to existing and proposed practices can help you to determine what’s going well, and where opportunities exist:
Do you list the salary in the job description?
Do you establish clear requirements for and pathways to promotion?
Do you tie salary increases to performance assessments?
Do candidates have the ability to negotiate beyond the stated salary range?
Does your company lose out on talent to other high-paying offers?
Pressure for the adoption of pay transparency practices is likely to continue. In the same way that remote-first companies were better prepared for the shift to remote work with the onset of the pandemic, we don’t have to wait for legislation to force that shift. But these practices must be implemented alongside other DEI approaches to improve your workplace and hiring culture. Pay transparency can get talent in the door, but a healthy culture will help them (and your company) thrive.
PDXWIT is taking steps towards pay transparency using an intersectional framework. You can learn more about how to apply this framework to your own company by reading our previous Portland Inno Column.
This piece was originally published in the Portland Business Journal on May 18, 2022.