Increased Openness in Salary Compensation: Pace decelerates, yet forward momentum persists
In a significant shift towards openness, salary transparency has grown in 95 out of 110 metropolitan areas over the past year, according to data analysed by Indeed. This trend is evident across various sectors, with the exception of the Healthcare sector, which remains one of the least transparent.
The state of Maryland is leading the charge for pay transparency, enacting new legislation effective October 1st, 2024. This law requires employers to disclose salary ranges in job postings and prohibits retaliation against employees who discuss wages. As a result, pay transparency in Maryland has risen by 14.5 percentage points between September 2023 and September 2024.
New York and the District of Columbia are also making strides in salary transparency. Employers in New York list salary information in almost all (97.7%) job postings, while job postings in the District of Columbia list pay information in about two-thirds (66.5%) of postings. Interestingly, four of the top five fastest-growing salary-transparent metros are in New York state.
Pharmacy job postings experienced the most substantial gain in salary transparency, rising by 24 percentage points. The Childcare sector, on the other hand, has the highest share of pay-transparent job postings, at 81.7%.
However, the growth in salary transparency has slowed in 2024 compared to the previous year. This could be due to a shifting labor market, where competition for workers has eased somewhat. Regardless, the benefits of stating pay information in job postings are clear for both employers and job seekers.
Interestingly, pay transparency is less common across the South compared to the West. Honolulu, Hawaii, stands out as the metro area with the largest increase in salary-transparent job postings, growing by 28.8 percentage points.
It's important to note that the data used in this analysis is extracted from postings published on Indeed.com. As of September 2024, 57.8% of job postings on Indeed contain salary information, up from 52.2% in September 2023.
In conclusion, while the growth in salary transparency has slowed in some areas, it remains a significant trend across the United States. The benefits of openness in salary information are increasingly being recognised, and it's likely that we will continue to see more and more sectors adopting this practice in the future.
