Pay transparency is coming to the biopharma industry. In fact, there’s already some form of law in place in California, Colorado, Connecticut, Maryland, and Washington with new transparency laws enacting in New York on November 1, 2022. Job boards such as Indeed are seeing an increase in companies sharing salary ranges. LinkedIn’s latest Workforce Confidence Index indicated that Generation Z workers in the US believe pay transparency will lead to more equitable pay. On the other hand, a recent LinkedIn survey of 19,000 professionals found most business owners are reluctant to share salary information.
As we continue to hear of the disconnect between employers and employees regarding returning to the office, hybrid work, and remote work, we have another factor that could either bridge or divide the parties.
With the goal of bridging the divide in mind, here’s what employers should consider doing:
Leadership must get behind pay transparency.
Many bio/pharma companies are on the cutting edge with excellent pay, employee benefits, bonuses, and other perks. By offering this information sooner rather than later, candidates will view the company as trustworthy and forward-thinking. In a competitive market, these are the intangibles that can attract and retain employees.
Companies must emphasize the difference in compensation ranges.
One of the fears in posting a salary range online is that candidates will always expect to receive the highest number. Careful wording about skills, background, and education can indicate why a person might expect less (or more) within the posted ranges. It can also establish reasonable anchors for salary negotiations.
Understand the implications on diverse hiring.
Pay transparency is indicative of a more inclusive culture and can attract those traditionally marginalized and a more diverse range of candidates.
Address existing employees.
In a culture where pay transparency has not been the norm, many employees may feel uncomfortable with co-workers knowing how much they are making. Human Resources and Leadership must come into play here by communicating how salaries are determined for various levels and titles.
We are still in a hot job market where employees and candidates have the power to pick and choose their optimal employment situations, and pay transparency is becoming a bigger factor in their decision process. This may change as the economy turns and hiring slows down, but it’s a reality that employers need to face right now.
Dennis Partners can help companies to navigate changes in the job market and evolving hiring trends. As the leader in Regulatory Affairs recruiting, we can create strategic and customized solutions for your hiring needs. Contact us today to see how we can help you meet your staffing goals for 2023.