Salary Bands and Salary Transparency

What are Salary Bands? What is Salary Transparency?

A salary band is the range an organization is willing to pay for a particular position, with the exact salary determined by potential factors such as candidate experience, internal pay equity, and candidate negotiations. Salary transparency is the practice of being open about salary bands with potential job candidates.

Example

For the sake of salary transparency, all job descriptions for our organization will include the salary band for that position.

Frequently Asked Questions

  • Why should organizations practice Salary Transparency?Salary Transparency is a practice where an organization will list a wage, salary, or Salary Band up-front as part of the recruiting/hiring process, rather than holding it back for the job offer or requiring applicants ask first. Organizations that practice Salary Transparency will often see more interest in their job openings, less risk of push-back from applicants, and a smoother hiring process (since applicants will know up-front of the Salary Band is suitable for them).
  • How do you determine a Salary Band?There are many factors that go into determining a Salary Band or a Salary Range for any given role. An organization should do research to find the typical market rate for similar positions in the area, and use that as a starting point. From here, the Salary Band should be adjusted in-line with the organization’s compensation strategy and budget (offering above-market salaries to attract better talent, offering below-market salaries due to budget restrictions, etc). Lastly, a Salary Band should be cross-referenced with other internal salary information to ensure that all salary ranges are set fairly to avoid any risk of discriminatory imbalance.
  • Does Salary Transparency mean no negotiating?Oftentimes, Salary Transparency policies and no-negotiation policies go hand-in-hand, and if this is true for your organization, this should be made clear up-front in a job listing. However, Salary Transparency does not necessarily mean that job seekers can’t negotiate – there may be some salary flexibility within a given Salary Band, an employer may choose to stretch their Salary Band for the right candidate, or a job seeker can negotiate for benefits unrelated to salary (such as additional PTO, scheduling flexibility, or work-from-home opportunities).
  • Who benefits from Salary Transparency?Job seekers, Human Resources, and the hiring organization as a whole can all benefit from Salary Transparency and sharing Salary Bands in job listings. Job seekers and hiring orgs alike both benefit from having salary listed up-front and not having to waste time going through a hiring process that was never going to result in an agreeable job offer. Hiring organizations can improve their reputation amongst job seekers and strong applicants by listing compensation in job listings. And HR benefits from spending less time in negotiations during the hiring process and greater confidence that they’re paying employees equitably.

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