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Transparency payment law opens up confusing salary ranges in job postings


The biggest shortcoming by far of the new state’s wage transparency law is the unreasonably wide pay range, which often includes more than a six-figure range.

For example, the base salary range for a database engineer at Apple in Cupertino, Calif., are listed between $130,000 and $242,000. At Tesla, one business analysis location in Palo Alto, Calif., offers $68,000 to $234,000 — a $166,000 range.

Even more amazingly, the salary for a software engineer at Netflix in Los Gatos, Calif., is typically between $90,000 and $900,000, according to the report. The company’s web site$810,000 difference.

It’s as if employers are winking at the law, or even toying with it. But at least, they don’t make it much easier for job seekers or current employees to peek under the guise of compensation in a much more meaningful way.

Julia Pollak, chief economist at ZipRecruiter, a job search site, told Yahoo Finance: “The law says you should post to the extent that you would reasonably expect to be paid. “No wild, crazy from zero to a million dollars.”

(Netflix job posting screenshot)

(Netflix job posting screenshot)

What companies ‘would reasonably expect to pay’

In the states of California and Washington, The law requires employers to post salaries on all advertised job postings effective January 1. A similar rule will follow later this year in New York State. Comparable wage disclosure laws are in place in Colorado and New York City, while Maryland and Rhode Island require salary information when requested by applicants.

By the end of the year, about 1 in 4 workers will be subject to state or local laws that require businesses to be transparent about their wages, according to Payscale data.

While it may seem like such a wide scope undermines the point of view of the law, according to experts, there is a method that leads to madness, according to experts.

“Part of the reason is that they need to determine what they reasonably expect to pay,” says Pollak. “And there’s just a big difference in wages within companies, not just between companies. It is quite typical for many companies to hire people for much lower wages because they are risk averse…so companies will often hire people with starting salaries much lower than they expected to be. pay them at the end of that year.”

According to Emily M. Dickens, chief of staff and head of public affairs at SHRM, Association of Human Resource Management.

“It’s a compensation package — not just base salary — and you have to put a value on those other benefits. That’s one of the flaws in this,” Dickens told Yahoo Finance. “You are competing with other organizations and we have a talent shortage, so you will want to offer the highest possible salary so you can compete.”

two women in the office

While salary disclosures are theoretically eye-opening, pay ranges often leave employers with a lot of headroom when it comes to individual salaries. (Getty Creations)

Many of the previously mentioned articles also allude to this.

“This market range is based on total compensation (versus base salary only),” according to the Netflix post. Tesla’s post put it this way: “The total compensation package for this position may also include other factors depending on the position offered.”

There are cases where a wide salary range really provides valuable information, says Pollak.

“In tech companies, compensation can average $300,000 for software engineers across the company, with junior employees making $100,000,” she says, “and a small team employees recruited for specialized skill sets or retained to build high-value products earn significantly more, between $600,000 and $1 million.”

Location is also important, especially with the increase in remote work opportunities. The cost of living varies from city to city and region to region, which employers must take into account.

Kory Kantenga, a senior economist at LinkedIn, told Yahoo Finance: “Remote work can be a gray area that needs to be studied to unravel. “As many employers index wages according to local labor market conditions, it is possible – if not – wages for remote jobs will be significantly greater than for onsite roles. .”

“Companies will take time to develop a pay philosophy and disciplined pay systems and procedures to meet the new laws,” says Pollak, another factor underpinning the pay gap. .

“Until now, what has happened in many interviews is that recruiters will say things like, ‘what do you hope to do in this role?’ And a candidate’s chutzpah and confidence are more important to compensation than role or budget.”

‘To some extent, this information…will help’

Sad man in glasses using hacked laptop in city frustrated with online identity theft tax and customer service

(Photo: Getty Creative)

For job seekers and those looking to advance at their current employer, having a clear understanding of the salary the position is likely to pay can be empowering.

To some extent, this information, even if broad, will help job seekers, says Pollak. “It will help them focus on the jobs that actually give them the pay they want, instead of going down the rabbit hole, writing out the entire application, only to find out that the job pays a lot less than that. level they need.”

Such a large range can help some candidates feel encouraged to ask for more money in general early on in the interview process. But don’t overdo it, Jayne Mattson, a career coachwarning.

“Salary may be broad, but that doesn’t mean you deserve a higher salary,” Mattson told Yahoo Finance. “People need to know and understand their value in the job market. Are your skills up to date? Have you solved the problems the company is facing? And can you clearly communicate your values ​​during the interview?”

“If that’s still lacking and you get an offer at the lower end of the pay range, don’t despair,” says Maggie Mistal, an expert. Executive career coach.

“Rather see it as the first step in negotiation. In my experience, most employers offer less than they can afford because they expect you to negotiate,” says Mistal. “Don’t take it as a done deal.”

In other words, go ahead and fight Netflix for at least half a million dollars.

Kerry is a Senior Correspondent and Columnist at Yahoo Finance. Follow her on Twitter @kerryhannon.

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