Many businesses balked at new salary transparency laws. The California Chamber of Commerce called California’s law a “job killer.” Companies started complying with the “letter of the law” by posting wildly large ranges. Citibank, for instance, posted a job with a salary range of “$0-$2,000,000.”
Why were they scared? For many reasons, but one is that if the job postings had public salaries, current employees could see what the company was willing to pay. And that could cause “wage compression,” which is where the gap between the new hire and experienced employees shrinks. With everyone knowing more, companies couldn’t keep internal salaries a secret. (Non-management employees can always discuss their wages, but the business doesn’t have to encourage it, and culture generally helps people keep their mouths shut.)
And precisely what businesses were afraid of happening happened, according to Kimberly Nguyen.
To keep reading, click here: Employees Use Salary Transparency Laws Just as Companies Feared
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