Excerpt: The Impact of Pay Transparency on Recruiting and Planning
4. How has increased transparency affected recruiting and what has been your team’s response?
We had to become pay transparent in the middle of the most aggressive talent market I have ever seen. The volatility has meant our original salary bands and career architecture may be subject to change and in as few as 30-60 days.
Within days of posting a job we know if our pay band is off because we won’t see the same volume of applicants. This helps us quickly calibrate our open roles to market rate.
It has also caused us to take a national compensation strategy where roles pay the same regardless of geography. If a role is earmarked at $80k in Denver, an out-of-state applicant in a less expensive geography knows what we are willing to pay and can negotiate accordingly.