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Pay transparency: how salary secrecy is being challenged

New US legislation forces companies to show pay ranges on job postings. It’s good news for applicants, but being open can raise other issues

Traditionally, etiquette dictates that it is rude to talk about money. But money underpins our post-pandemic work lives. From cost of living and inflation woes to pay equity campaigns, the Great Reshuffle, the war for talent, and employees choosing to work remotely from affordable regions — it’s become impossible to not talk about money when we talk about work.

Younger workers in particular have challenged longstanding taboos that deterred older generations from discussing pay openly. And while some employers might worry that better pay transparency will shift the balance of power away from bosses, some experts think that it will make workplaces better for everyone in the long run.

The transparency movement is growing. In New York City, all job listings posted since November 1 have to show a salary range. A recent study conducted by Willis Towers Watson found that many organisations are disclosing pay even when it is not required by law. Daniel Zhao, lead economist at Glassdoor, notes a “spillover” effect, where there has been a “modest uptick” in employers sharing salaries in the regions surrounding New York.

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