What Does Pay Transparency Mean for Professional Staffing?

Pay transparency is a hot topic in talent acquisition as a growing number of states and local jurisdictions are enacting laws requiring the public disclosure of expected compensation for job openings. While pay transparency aims to level the field for all applicants, women especially stand to gain from the disclosure of expected compensation. Employers seeking professional staffing benefit, too.

Professional staffing talent acquisition
Legal compliance aside, employers are finding pay transparency helps to attract top talent for their professional staffing needs. When candidates know the compensation range, it eliminates those often-difficult conversations when the salary is below the candidate’s expectation.

A recent Society for Human Resource Management (SHRM) article quoted Mariann Madden, North America fair pay co-lead at advisory firm WTW, as saying, “The quality of applicants should be better, because they are more informed and can better determine whether or not they even want to apply,” she said. “Implementing pay transparency is also a more effective way to manage the hiring process, and saving time upfront on pay expectations should improve time-to-fill.”

Beyond talent acquisition, many employers who embrace pay transparency see long-term benefits with workers reporting improved performance and job satisfaction, which can lead to better professional staffing retention.

Yet, many employers are still reluctant to disclose compensation because they fear internal strife when their employees learn about pay disparities with colleagues. Experts advise employers that now is the time to review their pay structures for inequities and make any necessary changes before they are legally required to share compensation on job postings.

Legal changes to affect professional staffing recruiting
In 2019, Colorado was the first state to enact a pay transparency law requiring that the pay range and benefits be disclosed in all job postings. Other states and local jurisdictions have been following suit.

Here in Pennsylvania, state agencies have had to clearly disclose a position’s pay range since 2018. In May, the Pennsylvania House of Representatives passed the Equal Pay Law (H.B. 98) and is now being considered by the Senate. Under the proposed law, employers would have to disclose the expected compensation for any publicly advertised position as well as upon request from any prospective employee.

For a listing of pay transparency laws, see www.forbes.com/sites/alonzomartinez/2024/06/14/2024-state-by-state-pay-transparency-laws-key-insights-for-employers/

How our professional staffing agency in Central Pennsylvania can help

As a professional staffing agency, we know that finding a candidate that is a great fit involves more than being upfront about the salary. We focus on bringing good people and good companies together by really getting to know our clients and our candidates. That way we can evaluate a prospective employee’s skills and knowledge, personality, and professional goals to ensure a great match with our client’s needs and company culture.

That’s why TriStarr has been making lasting matches In Lancaster, York, and the surrounding Central Pennsylvania region for more than 30 years. Our professional staffing experts specialize in accounting, legal, IT, and human resource placements as well as recruiting for professional and management roles. Request talent or call us at 717-560-2111 for more information.