How salary transparency is reshaping the job market | Claro

Salary transparency is quickly becoming a prevalent practice across the US. From pay equity to more informed career decisions, it can also help with talent attraction and fostering trust within workplaces. 

Around 58% of all US job postings included salary information in April 2024, up from 45% in May 2023, data from Claro Analytics, WilsonHCG's talent intelligence and labor market data platform, revealed.  There are currently eight states that require employers to post salary ranges on job postings: California, Colorado, Connecticut, Maryland, New York, Nevada, Rhode Island, and Washington, while another 16 states and Washington DC are considering pay range transparency laws. 

We’ve been closely tracking the salary transparency trend across various major metropolitan areas and are witnessing steady and promising progress between September 2023 to April 2024. 

• Seattle-Tacoma-Bellevue, WA: Job postings with salary data increased from 78% to 87%. Washington State introduced pay transparency laws in January 2023.  
• Denver-Aurora-Lakewood, CO: There was an increase from 83% to 86% in this region. Pay transparency laws have been in place in Colorado since January 2021.  
• San Francisco-Oakland-Hayward, CA: The number of job postings with salary information rose by nine percentage points to reach 83%. California introduced pay transparency laws in January 2023.  
• Los Angeles-Long Beach-Anaheim, CA: There was an increase of seven percentage points. 82% of job postings in this region included salary info. 
• New York-Newark-Jersey City, NY-NJ-PA: Job postings displaying salary information climbed from 57% to 74%. New York has had pay transparency laws in place since September 2023.  
• Miami-Fort Lauderdale-West Palm Beach, FL: This region saw an improvement from 53% to 58%.   
• Kansas City, MO-KS: And there was growth in Kansas City, with the number of job postings with salary details rising from 53% to 56%.  

Transparent pay practices not only aids compliance with emerging regulations but helps to position organizations as employers of choice that are committed to fairness and equity.  

Embracing transparency can also serve as a great tool in employee negotiations, helping to set clear expectations and reducing time spent on back-and-forth discussions during the hiring process.  

The ongoing shift towards salary transparency isn't just a legal or social requirement, it's a strategic advantage in today's competitive labor market. Transparent pay practices can help companies better attract top talent, minimize hiring friction and enhance overall employee satisfaction.