CARLA ISABEL CARSTENS CAREER COACHING + SPEAKER | fashion industry career coaching | beauty industry career coaching | keynote speaker

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How Salary Transparency is Changing the Game: What You Need to Know

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Let’s talk about pay transparency, which has become a huge topic across cities and states like California, Colorado, Washington, and New York City. These new pay transparency laws mean companies must post salary ranges for jobs, showing the minimum and maximum pay ranges, though the specifics differ depending on where you live. For instance, some places only require companies to share pay ranges with new applicants, while others allow current employees to request this information too.

But the rollout hasn’t been smooth. Imagine finding out someone with your exact role at the same company makes $50,000 more. Or, what if you get a job offer that’s $20,000 lower than the listed range? Let’s just say it can be an emotional rollercoaster. Some companies are avoiding listing pay entirely by limiting where remote jobs can be done, for example, stating jobs can’t be done from cities like NYC, which lets them skip salary range requirements.

Even though there’s still a lot to work out, pay transparency laws are moving us closer to equity and clarity in the workplace, giving more power to both job applicants and current employees. Here’s everything you need to know about interpreting those salary ranges and getting the most out of this info.

Why Pay Transparency Matters

Knowing the salary range upfront can help you:

  • See if the job aligns with your expectations before you even apply.

  • Negotiate confidently, with a clear understanding of the pay standards.

  • Check if you’re being paid fairly compared to others in similar roles.

Research shows that 85% of people are more likely to apply for jobs with listed salary ranges, and around 63% of workers would ask for a raise if they knew their coworkers earned more for the same job. This information empowers employees to advocate for themselves, but it can also be confusing, especially with the varying salary ranges across positions and industries.

How to Interpret Job Listing Salary Ranges

Deciphering salary ranges can be tricky. The rule of thumb is to look for ranges where the maximum is about 1.5 times the minimum. For instance, if the low end is $40,000, the high end should be around $60,000. When ranges are much wider, say $50,000–$150,000, that can be a red flag. In these cases, it’s tough to know where you’d fall, and the company may be using a massive range to cover different skill levels, experiences, or qualifications.

Another factor is industry and location. For example, a VP of Marketing in fashion will likely earn differently than a VP of Marketing at a tech firm, even if the role and location are the same. Doing research on typical salaries in your industry, position, and city will help you make sense of the numbers.

Should You Apply for Jobs With Lower Salaries?

Sometimes you’ll find a great job listing that’s a little below what you’d like to earn. Should you still apply? Yes! As long as the gap isn’t huge, applying is worth it. You can always negotiate if you’re a strong candidate, especially if the position excites you or the company has perks like training programs, rapid promotions, or great benefits.

However, if the range is 30% lower than your ideal pay, you’ll probably want to keep searching. Don’t forget: salary is only part of the package. Consider factors like benefits, career growth, flexibility, and company culture.

Tips for Bringing Up Salary in Interviews

Even though companies are required to post salary ranges, they might still be willing to negotiate. During early conversations, ask if there’s any flexibility within the posted range. You don’t need to give a specific figure right away—just feel out the company’s response.

If they say it’s a firm range, ask yourself if the job’s potential growth or benefits make it worthwhile. And if you learn there’s no wiggle room, be honest with yourself about your interest level.

If You’re Being Underpaid, Here’s How to Approach a Raise

Let’s say you’re already employed and find out you’re on the lower end of the range. Use this as leverage in a meeting with your boss to make your case for a raise. Gather data, including the listed ranges for similar roles, and focus on how your skills contribute to the team’s success. Be upfront yet professional:

“I’ve noticed that my position typically offers a higher range in the market. I’d love to discuss how I can contribute more to the team and grow within this role. Is there a path for increasing my responsibilities that could align my pay with the industry standard?”

Remember, doing your job doesn’t guarantee a raise, but going above and beyond often does. And keep in mind that pay raises don’t always mean direct salary increases—you can also negotiate for more benefits, remote work days, or performance bonuses.

Making Sense of Pay Transparency as a Tool for Self-Advocacy

These new transparency laws are a fantastic resource, but it’s important to look beyond just the posted range. Use multiple sources of information to determine your worth in the market. Talk to peers, family members, and colleagues to gain perspective on what’s typical for your industry and role.

Finally, don’t just accept pay transparency as the final word—use it as a guide. The listed pay range helps start the conversation, but what you bring to the table ultimately influences what you earn. Keep the focus on your skill set, experience, and contributions to make your case, whether it’s for a raise in your current role or a fair offer for a new job.

Final Takeaway: Pay transparency laws have opened up new ways to ensure fair compensation, but it’s just one piece of the puzzle. By combining this knowledge with data, confidence, and a strategic approach to negotiations, you’ll make these tools work for you, whether you’re job hunting or already in your dream role.