Dive Brief:
- A nonprofit association for the U.S. museum industry announced it will require organizations utilizing its job board to post salary ranges in all job descriptions effective Nov. 15.
- The American Alliance of Museums announced the policy in an Aug. 15 update, a spokesperson confirmed to HR Dive. The decision followed an audit of AAM’s job board, which found a majority of postings had voluntarily included salary information. Additionally, candidates told AAM that salary transparency has eased the burden of job searching and salary negotiations, per the announcement.
- “We know that salary transparency practices can’t thoughtfully take place overnight or in isolation,” AAM said. “It requires a critical look at current practices and, for many, the collaboration and approval of parent organizations, boards, and other entities. With this advanced notice, we urge museums to begin making the policy reviews and changes, benchmarking, and compensation studies required to holistically implement these important practices.”
Dive Insight:
Pay transparency has become a central point of focus in the current talent market as workers shift jobs over factors including low pay, according to researchers who recently spoke to HR Dive. Job changes paid off for many, with most of the 2,600 U.S. workers in a March Conference Board survey stating that they received a pay increase upon shifting roles.
Transparency is getting a boost from both the private and public sectors. Employers have seen the former at work for years, with platforms like LinkedIn rolling out features to provide candidates with pay information well before the pandemic.
Meanwhile, state and local governments have enacted two key forms of laws to tackle compensation issues in the recruiting process. Jurisdictions in more than 20 states have enacted laws addressing the use of pay history in recruiting decisions, while those in at least 10 have enacted pay transparency requirements for employers.
The emergence of pay transparency has been a “welcome change” in recruiting, according to Christy Pruitt-Haynes, head of talent and performance practice at NeuroLeadership Institute, a consulting firm. Candidates who have long been at a disadvantage due to gender, race or other factors have had to deal with pay below their actual market values, Pruitt-Haynes told HR Dive in an interview, and new requirements could help bring an end to these disparities.
“Oftentimes now, for potential employees and those applying for jobs, when they see a job that has a salary range listed for it, it makes them more likely to apply,” Pruitt-Haynes said. “There’s a real opportunity there.”
Industry factors also may play a role; AAM’s announcement, for example, may address pay problems that many U.S. museum workers face due to employment practices in the industry, media outlet Observer reported. But employers can benefit from greater transparency, too. A report this month from hiring solutions firm PandoLogic found that including pay information in job postings may lower overall recruitment costs.
That may be in part because companies do not have to waste time recruiting candidates who are too far apart from them on pay, Pruitt-Haynes said; “Ultimately this will make sure employees apply to the jobs that work best for them.”
Employers may need to work through some wrinkles when rolling out pay transparency, however. For example, if a position is paid on a commission basis, it can be difficult for an employer to calculate an accurate salary range, Pruitt-Haynes said. Additionally, employees with more experience in a certain job may feel that pay transparency puts them at a disadvantage when competing with less experienced workers.
But employers have options when addressing these issues, Pruitt-Haynes added. Pay transparency can present an opportunity for an employer to review its job descriptions and spell out what requirements are necessary for a given position. Descriptions that previously leaned on phrases such as “all other duties as assigned” may need to be fleshed out.
“In the past … that wasn’t quite as necessary,” Pruitt-Haynes said. “But now, it is going to be quite important.”
