Pay transparency—it’s not just a buzzword anymore, it’s rapidly becoming a standard across the U.S., and New York employers are right in the middle of this growing movement. With more states implementing pay transparency laws, employers are being challenged to rethink how they approach salaries and compensation.

But here’s the thing: pay transparency isn’t just about compliance. When done right, it can be a game-changer for building trust, attracting top talent, and creating a more equitable workplace. So, what does this mean for you as an employer in New York, and how can embracing pay transparency move your business forward? Let’s break it down.

1. What Is Pay Transparency?

Pay transparency means making salary information—whether for individual positions or the entire company—readily available to employees, job candidates, and sometimes the public. In states like New York, it’s now mandatory for employers to include salary ranges in job postings. The goal? To reduce pay disparities, particularly for women and minority workers, and create a more open and equitable hiring process.

For New York employers, this means you need to include a range that reflects what you’re genuinely prepared to pay for the role—no more waiting until the interview process to disclose salary details.

Example: Let’s say you’re hiring for a marketing manager role. In your job ad, you’re now required to state, for instance, that the position pays between $75,000 and $95,000. This not only keeps you compliant but also gives candidates an upfront understanding of whether the role aligns with their salary expectations.

2. How Pay Transparency Benefits Your Business

Pay transparency may seem like just another regulation, but it’s actually an opportunity to strengthen your business and workplace culture. Let’s look at how.

Building Trust: Transparency breeds trust. When employees know where they stand and understand how their pay is determined, they’re more likely to feel valued and respected. In fact, a survey by Beqom found that 58% of workers say pay transparency would improve trust within their company. Trust leads to higher employee satisfaction, less turnover, and better overall morale.

Attracting Top Talent: Job seekers are becoming increasingly selective, and salary transparency is now a key factor in their decision-making. Posting clear salary ranges upfront can make your job listings stand out, especially to high-quality candidates who value openness and fairness. In a tight labor market, being transparent can give you the competitive edge you need to attract the best talent.

Closing the Pay Gap: Pay transparency can be a powerful tool for addressing wage disparities. Studies have shown that women and minority workers often receive lower salaries than their white, male counterparts for the same work. By openly sharing pay information, you’re ensuring that everyone is starting on an equal playing field.

3. How New York’s Pay Transparency Laws Work

As of September 2023, New York’s pay transparency law requires employers with four or more employees to include a salary range for any advertised job, promotion, or transfer opportunity.

The law applies to both external job postings and internal job movements, so it’s crucial that you remain consistent across all communications. Importantly, this applies whether the position is fully remote, hybrid, or on-site.

Example: If you’re advertising a fully remote position that could be filled by someone living in New York, you’ll need to include salary information that aligns with the state's requirements, even if the candidate lives elsewhere.

4. Challenges Employers May Face (And How to Overcome Them)

Adopting pay transparency isn’t without its challenges, but those hurdles can be overcome with a thoughtful approach.

Adjusting Salary Structures: One of the most common concerns is that sharing salary ranges might upset current employees who are earning less than the advertised range. This could lead to difficult conversations, but it’s an opportunity to evaluate your pay practices and address any inconsistencies.

Start by conducting a salary audit. Are your employees being compensated fairly for their roles and responsibilities? If not, now’s the time to make adjustments. Pay transparency laws aren’t just about compliance—they’re a chance to take a hard look at your company’s compensation philosophy and ensure it’s both fair and competitive.

Negotiation Complications: Some employers worry that revealing pay ranges will limit their ability to negotiate. However, salary ranges offer flexibility, especially when they reflect the full spectrum of experience and skills you’re willing to pay for. Instead of seeing it as a limitation, view it as a tool for transparency, allowing you to have more informed discussions with candidates.

Practical Tip: When setting salary ranges, don’t just pick a number out of thin air. Use market research, industry benchmarks, and internal compensation data to create ranges that are competitive and fair. Be prepared to explain how you arrived at those numbers if employees or candidates ask.

5. Pay Transparency Moves the Workplace Forward

At the heart of pay transparency is the push toward a more equitable and inclusive workplace. It’s about giving employees—and potential employees—more visibility into how compensation is structured, making sure no one is left in the dark when it comes to pay.

This shift is part of a broader trend toward accountability and fairness in the workplace. As more states follow New York’s lead, companies that embrace transparency now will be better positioned to attract top talent, foster a positive company culture, and avoid potential legal headaches down the road.

Example: Companies like Buffer and Whole Foods have already embraced full pay transparency, going so far as to make their salary data public. Buffer, for example, shares every employee’s salary online, providing a model for radical transparency. The result? Higher employee satisfaction and an influx of job applicants who are drawn to their open culture.

Transparency is the Future

It’s clear that the future of work is transparent. So why not get ahead of the curve and turn pay transparency into your company’s next big strength? As you align your practices with these new laws, you’ll find that openness about pay can drive fairness, attract top talent, and build the kind of trust that keeps employees happy and engaged.

After all, the best workplaces are built on honesty, and pay transparency is the next step in creating a workplace where everyone wins.