On November 1, 2022, New York City’s new pay transparency law for businesses operating in the region went into effect. This legislation follows similar measures in 17 states across the United States, including Colorado, Connecticut, and Maryland, and precedes new laws which will take effect in early 2023 in Washington and California.
This emerging trend toward strengthening pay transparency laws isn’t solely a US phenomenon. For businesses operating (or planning to expand multi-nationally), the EU recently passed similar legislation, too.
So how do these seismic changes to the recruitment market affect job postings, pay equity, and your compensation strategy? What challenges do they raise for HR professionals, and what steps should you take to respond well?
New and complex challenges driven by these changes are appearing every day, and it’s up to HR departments around the world to react quickly and intelligently to keep their companies on top. To help out, we spoke to HR leaders here at HiBob to outline what you can expect from pay transparency laws and how to lay the foundations of an effective response program.
What are the pros and cons of new salary transparency laws?
Localities with salary transparency laws are primarily aiming