New York City businesses will now be required to add salary ranges > 자유게시판

Businesses in the Big Apple will be required to add pay ranges to their job postings starting Tuesday under a new city law designed to make the job application process more transparent. 

Under 's new pay transparency law, any company located in the Big Apple that employs four or more people will be required to post salary ranges for open roles starting on November 1.

Violations could cost businesses as much as $250,000 — though city officials have said they won't levy fines for not posting salary as long as the company posts the required information within 30 days of a warning.

The law follows a similar statute in that went into effect last year, and the New York State Legislature has approved a similar measure, though Gov. Kathy Hochul has yet to sign it into law.

Many companies across the country are now providing salary ranges on their job postings, as job site reported in April that 60 percent of its job ads include salary ranges — and those that do see about 30 percent more people starting applications.

Job seekers in New York City will now be able to see how much each business is offering under the city's new salary transparency law

The law requires any company located in the Big Apple that employs four or more people will be required to post salary ranges for open roles starting on November 1

By Monday, credit card giant American Express announced it will join the ranks of companies displaying salary ranges on its future job postings.

And as younger employees continue to share their salaries with their colleagues, nearly one-third of companies are considering or are even planning to increase the frequency of pay raises, according to a survey of 884 companies in North America.

Others, meanwhile, are working to train managers on how to respond to staffers who ask why a posted salary is higher than what the currently earn, as  makes it more difficult for everyday Americans to purchase necessities.

'With inflation and the rising cost of everything, I fear some staff may ask for more money than we can afford,' Odes Roberts, owner of Almost Studios — a small design firm in Brooklyn — told Bloomberg.

'But I also want everyone in our company to know who is getting paid what.'

Business executives throughout the city say they are not ready for the change, even though it was originally scheduled to go into effect in May.

They fear the newfound transparency may result in some of their employees asking for raises they cannot afford or leaving the company for better paying jobs.  

But salaries are no longer a taboo subject in the business world as a number of large companies throughout the country have already started posting their salaries on job advertisements in an effort to attract more applicants.

Microsoft already has a plan in place to roll out the practice nationally, and American Express announced that it too will start posting job salaries on its advertisements.

'Although the law is only applicable within New York City, we have extended this same level of transparency across the US to ensure a consistent experience for job seekers interested in finding their place on our team,' a spokesperson told Bloomberg.

Salaries posted online, though, often show quite a range. 

An entry level design job at IBM, for example, offered applicants between $73,000 to $152,000 annually, while a project manager at WarnerMedia can rake in anywhere between $88,900 to $165,100 a year.

Managers at American Express can also make between $80,000 to $155,000, and security engineering managers at software firm Chainalysis can rake in a whopping $217,000 to $285,000 annually.

Jobs offered by the city and the state, meanwhile, seem to have a smaller range, with a program specialist for the US Health Veterans Administration making between $63,609 to $82,693 and a job working for the city as an 'Outreach Coordinator for Partnerships for Parks' offering between $54,981 to $83,981.

A number of companies in the Big Apple are already posting salary ranges for their entry level jobs ahead of Tuesday's deadline 

By next year, it is estimated that as much as one-third of the US workforce will be able to see salary ranges in job listings, or at least request them from the companies they are applying to.

And experts say those that do not have a plan to disclose their salaries may start to see their employees look for jobs elsewhere.

'Companies have no choice but to do this,' said Allyn Bailey, director of Smart Recruiters, which develops software for companies' recruiting process.

Bailey told how existing staff at one of her clients, a 500-person Colorado software firm, demanded the higher pay they saw advertised to new hires.

They were then disappointed when the company said they could not immediately increase salaries and quit their jobs.

As a result, she said, the company had to start recruiting workers from its lower-paying competitors. 

Business leaders also worry that by forcing companies to be transparent about salaries, companies will need to increase benefits or bonuses, with a survey of medical device firms finding that employees were more likely to seek out additional compensation

Business leaders also worry that by forcing companies to be transparent about salaries, companies will need to increase benefits or bonuses.

A recent study published in the surveyed more than 100 medical device firms, and found that when pay was transparent, employees were more likely to seek out — and employers were more likely to offer — to provide that compensation.

For Ethena, a Brooklyn-based workplace compliance training company, for example reported that after they started publishing salary ranges for US job postings in April a separate firm-wide salary review process led to pay raises for a few current employees.

Still, CEO Roxanne Petraeus told Bloomberg opening up was more effective than employees relying on rumors.

She added the company is now considering adding bonus and equity compensation to its existing salary disclosure to give job seekers a fuller picture of what people make at the company, even though that is not required under the law.

On Monday, paypalvcc American Express announced that it will now start posting job salaries on its advertisements throughout the country

To help New York City businesses prepare for the change, Kelley Burwood, an assistant general counsel for software firm Hubspot, held a webinar for companies to discuss the new law.

She said that it is important to explain that some new hires may get paid outside the ranges, as the disclosure rule simply requires firms to make a good faith estimate.

'We need to see how this is going first and work out the kinks,' she told the participants.

Stacy Sahagian, senior director of people at Dashlane (a New York based software firm) said the company is now taking the midpoint of its existing salaries for a given role then reducing it by about 10 percent to get the low-range salary and 5 percent higher to get the high-range salary.

She said the key, though, is to explain to jobseekers what the pay range actually means, noting: 'Transparency without context does not achieve much.'