<img height="1" width="1" style="display:none;" alt="" src="https://dc.ads.linkedin.com/collect/?pid=118459&amp;fmt=gif">
Show all

Pay Transparency

pay transparency

3 minute read

As a result of changing labor markets, more and more employees are demanding pay transparency. Pay transparency is when an employer openly communicates pay-related information through established practices to current or perspective employees. It can be provided through various channels including job posting, online job sites, or during an interview.


Pay Transparency Across the U.S.

As pay transparency demands increase, some cities and some states have passed legislation requiring organizations to be transparent. Depending on the jurisdiction, pay transparency requirements may vary. Some may only require employers to provide pay ranges if the candidate requests it, while others require employers to disclose it up front.


Employees and Pay Transparency

Employees value pay transparency because it holds employers accountable for providing similar wages for similar roles, builds trust, and helps employees easily see if they are being compensated fairly.

According to Visier’s 2022 Pay Transparency Pulse Report, the most important factor for potential employees to consider when applying for a job is their estimated compensation. Eleven percent of potential employees will not apply or interview for a role without knowing the salary band, and 50% have completely abandoned an application or interview process because the pay did not meet their expectations once it was revealed.


The Employer Advantage

Pay transparency doesn’t appear to be just a trend. Not only are more states and cities implementing laws, but it’s also important to young workers. Younger generations and entry-level employees think about pay differently from how employers historically treated compensation conversations and practices.

Discussing pay transparency is a good way for employers to cultivate trust with their employees. Simply taking the time to discuss pay with employees and candidates can build trust. This small change can help employers build and strengthen employee relationships.

To meet employees’ desires, employers may consider implementing practices such as publishing pay scales for their open positions or hosting informational training sessions on pay-related topics. Organizations that provide pay transparency information tend to receive more applicants. Also, by disclosing this information, employers can save time and money in recruiting by ensuring candidates don’t reject job offers due to insufficient pay.



There are different ways that employers can increase their pay transparency and doing so may improve attraction. For those jurisdictions that already require pay transparency, employers should confer with local laws to ensure compliance. For more information, download the bulletin.

Learn why HRAs may work better than HSAs for public sector employers.

National Insurance Services is not a law firm and no opinion, suggestion, or recommendation of the firm or its employees shall constitute legal advice. Readers are advised to consult with their own attorney for a determination of their legal rights, responsibilities and liabilities, including the interpretation of any statute or regulation, or its application to the readers’ business activities.

Upcoming Deadlines for ACA Reporting
December 21, 2022
New Telemedicine and HSA Legislation
December 21, 2022
Valerie Ortiz

Valerie Ortiz

Over the past 20 years, Valerie Ortiz has worn many hats at National Insurance Services. She currently heads up NIS’ Marketing Team where she helps to create and execute employee benefit communications based upon our public sector clients’ needs. Valerie brings order to the chaos and has a zeal for detail and a talent for organization.