Why 2022 is the year of pay transparency

The days of pay transparency as a taboo subject are numbered.

Open sharing of employee wages may soon become the norm in businesses large and small as employers seek to create more equitable workplaces where people in comparable roles receive similar wages. That’s according to LinkedIn’s annual list of big ideas that could change the world in 2022, from CEOs, entrepreneurs and thought leaders. The trend has been embraced by companies like Netflix and Whole Foods, as well as lawmakers. New York City Council is now requiring Big Apple employers to post salary ranges on job postings.

Here’s why even wider adoption is expected this year:

  • The momentum behind tackling gender and racial inequalities will intensify in 2022, Diane Domeyer, chief executive of human resources consultancy Robert Half, told LinkedIn. “The company’s desire to close the wage gap for protected groups is what really is at the heart of it,” Domeyer said.
  • Companies that embrace pay transparency are likely to have an easier time finding and retaining workers in the midst of the Great Resignation and throughout the rest of the year. “Organizations have the advantage of being ahead of the law and demonstrating to employees that they are in favor of equity and inclusion,” says Donmeyer.
  • Transparency on wages has reached a point of no return. With an increase in legislation prohibiting companies from discussing salary history with potential employees during hiring, salary transparency is expected to follow, according to Domeyer. “Without it, people will always feel like they aren’t paid enough,” she says.

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