Are Pay Transparency Laws Making People Switch Jobs?

Pay transparency laws, such as salary ranges in job ads, have changed the way workers are perceiving their jobs — and how much they should be paid. For some, that might be enough to start looking for a new job.

Pay Transparency

Historically, discussing salaries openly in the workplace has often been discouraged. But across the country that’s changing. Ten states have already passed pay transparency laws: California, Colorado, Connecticut, Hawaii, Illinois, Massachusetts, New York, Nevada, Rhode Island, and Washington. On top of that, Cincinnati, Toledo, and Washington D.C. have done the same.

As a result, some 60% of companies now share salary information on job listings, up 15% from last year, according to a new study by compensation data firm Payscale .

But while many have embraced these new pay transparency standards, there are still plenty of businesses that resist sharing salary information publicly, citing the high cost of implementing this structure, or a reluctance to share this information with competitors.

Employee Empowerment

Increased access to salary information may encourage employees to test the job market.

Per Payscale, 14% of business leaders said employees have quit after discovering higher-paying jobs elsewhere, while more than a quarter of companies said employees were asking more questions around compensation.

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