• In the current HR landscape, one topic that’s generating substantial buzz is pay transparency. State and local governments are increasingly pushing organizations to open up about their pay practices when posting jobs and to regularly report on these practices. However, even beyond compliance requirements, many forward-thinking organizations voluntarily embrace pay transparency as a fundamental aspect of their HR strategy.

    This shift towards transparency, while commendable, poses significant challenges, especially for large organizations with intricate pay structures. Thankfully, technology is emerging as a vital ally in this endeavor, offering a range of benefits that go beyond just ensuring compliance.

    The Moral Imperative Of Pay Equity And Transparency

    In a job market characterized by fierce competition for talent, candidates hold a significant amount of power. They are not just seeking employment; they are seeking the right fit for their skills, experience, and financial expectations. When organizations are transparent about pay ranges, they empower candidates with essential information to make informed decisions.

    From a recruitment perspective, it makes sense to be transparent about pay ranges. One of the primary benefits of pay transparency during the recruitment process is the efficiency it brings. Without clear pay information, candidates may invest time and effort in pursuing job opportunities only to discover later in the process that the compensation offered falls short of their expectations. This can result in wasted resources for both the candidate and the hiring organization.

    Candidates who have access to pay ranges upfront can quickly assess whether the salary aligns with their financial goals and expectations. As a result, candidates who are genuinely interested in the position and its compensation are more likely to apply, streamlining the recruitment process.

    Furthermore, technology enables organizations to maintain internal and external pay equity effortlessly. Technology streamlines what was once a time-consuming and manual process. However, it’s not just about the numbers; it’s about the actionable insights derived from them.

    Choosing The Right Vendor

    Selecting the right technology vendor is a critical decision. It’s essential to consider a vendor’s platform robustness and expertise in the pay equity domain. A reputable vendor offers tools for evaluating pay and opportunity gaps and provides guidance on changing legislation and best practices.

    It’s critical for business owners to have a clear understanding of the problem they want the platform to solve and what kind of HR and business knowledge they’re seeking through analytics. Involving various groups within the organization, such as legal, HR, and business leaders, can help define the vision for pay equity.

    Unlocking Pay Equity With A PEO

    Partnering with a professional employer organization (PEO) can be a game-changer in navigating the complex terrain of pay transparency and equity. PEOs are well-versed in HR best practices, compliance requirements, and cutting-edge technology solutions. At GMS, a certified PEO, we provide support in implementing transparent pay practices, from crafting fair compensation structures to leveraging advanced HR technology for real-time data insights. By partnering with GMS, businesses can streamline their HR processes and ensure that they stay ahead in the quest for pay equity, ultimately fostering a culture of transparency and fairness that attracts top talent and propels their success in the competitive business landscape. Interested in learning more? Contact us today to learn more.

  • In a progressive move towards promoting fair wages and transparency in the workplace, Illinois has set a significant precedent by passing pay transparency requirements. On August 11th, 2023, Governor J.B. Pritzker signed a bill that will reshape how employers communicate compensation details to potential hires. This transformative legislation, House Bill 3129, aims to bridge the information gap between employers and job seekers, ensuring that pay scales and benefits are clearly outlined in job postings, thus fostering a more equitable job market.

    The Path To Pay Transparency: A New Era Unveiled

    Starting January 1st, 2025, employers in Illinois with at least 15 employees will be obligated to disclose pay scales and benefits for positions within their job postings. This move echoes a broader societal shift towards greater transparency, emphasizing openness and fairness throughout employment.

    House Bill 3129 introduces a compelling requirement for employers to furnish the anticipated pay scale and benefits in their job postings. This provides job seekers with a comprehensive understanding of the potential compensation package, allowing them to make informed decisions about their career prospects. This fosters trust and honesty between employers and applicants and lays the groundwork for a more equitable job market where candidates have the knowledge they need to negotiate fairly.

    Inclusivity And Impact: Who And What Does It Apply To?

    The law’s reach extends to a broad spectrum of job positions. If a job is to be partially performed in Illinois or if the employee is expected to report to an Illinois-based supervisor, office, or work site, then the law’s provisions apply. This ensures that the information asymmetry between employers and employees is addressed consistently and uniformly.

    However, the legislation’s impact doesn’t just stop at pay scales. The definition of “benefits and other compensation” under House Bill 3129 includes various incentives, such as bonuses and stock options, reflecting the comprehensive nature of the law. Employers are tasked with providing a holistic view of the compensation package, fostering greater clarity for potential hires.

    Navigating Compliance And Implementation

    To meet the requirements of the law, employers can include a hyperlink within job postings, redirecting candidates to a publicly viewable webpage containing the pay scale and benefits information. This innovative approach marries technology with transparency, streamlining the communication of crucial details while maintaining the user-friendliness of the application process.

    For those employers utilizing third-party platforms for job postings, the responsibility of including the necessary information lies with both parties. Employers must provide the pay scale and benefits to the third party, which becomes accountable for its inclusion. This collaborative effort ensures that vital details are communicated accurately.

    Tori Moldovan, PHR, GMS’ Client Services Manager, expressed, “Pay transparency laws make you think differently when looking at your employee base. When you have to consider items such as the pay scale and benefits for the position, it forces you to look at your organization as a whole. These will be posted, so current employees will be able to see what you’re offering as well. If they aren’t at that mark with current employees, it could lead to other issues for employee retention and wage inequality that may be brought to light.

    From a compliance standpoint, employers that fail to adhere to pay transparency laws in Illinois can face up to $10,000 in penalties for repeat violators. It’s important to ensure you are following the guidelines set forth by the state.”

    Empowering Employees And The Role Of The Illinois Department Of Labor

    To strengthen employee empowerment, House Bill 3129 also mandates employers to notify current employees of all promotional opportunities arising within 14 days of external postings. This promotes internal growth and helps in fostering a motivated and loyal workforce.

    The Illinois Department of Labor (DOL) is a guardian of compliance, empowered to initiate investigations into potential violations. Whether triggered by individual complaints or the department’s discretion, this measure underscores the state’s commitment to upholding pay transparency and ensuring its effective implementation.

    The Road Ahead: A More Fair And Transparent Job Market

    Illinois’ stride towards pay transparency is a significant leap forward in reshaping the job market dynamics. By embracing open communication of pay scales and benefits, the state sets a powerful example for other jurisdictions to follow. With the law’s implementation set for January 1st, 2025, the coming years promise to be transformative, creating a job market characterized by equity, trust, and empowerment for all.

    As Illinois paves the way, it’s not just pay scales and benefits being illuminated; it’s a brighter future for employment, one built on the principles of transparency and fairness. The journey toward pay equality has just taken a giant stride, and the destination looks promising.

    How A PEO Can Be Your Partner In Pay Transparency

    Embracing pay transparency is a legal obligation and a strategic move towards a fairer and more attractive workplace. As Illinois businesses gear up to navigate the new era of pay disclosure, a professional employer organization (PEO) like GMS can be your guiding light.

    PEOs specialize in managing HR functions, ensuring compliance, and simplifying complex tasks such as pay scale communication. We help you seamlessly integrate the required pay transparency measures into your job postings, taking the weight off your shoulders and allowing you to focus on what you do best – running your business. By partnering with GMS, you ensure compliance and foster a culture of transparency and employee trust. As the Illinois pay transparency law approaches, GMS can be your trusted partner, providing you stride confidently into a future where fairness and openness define your workplace. Contact us today to learn more.

  • Illinois is on track to become the next state to enforce pay transparency laws by mandating the disclosure of pay scales in job postings, strengthening its commitment to pay equity. While the Illinois Equal Pay Act has been around for a decade, it’s seen many changes within the past few years. The Illinois Equal Pay Act is one of the country’s most demanding pay transparency statutes because it requires employers with 100 or more employees in Illinois to submit employee pay data and a signed compliance statement to obtain an Equal Pay Registration Certificate (EPRC). All employees regardless of sex or race, who perform substantially similar skills, effort, and responsibility must receive the same wage rate.

    Diving Deeper Into The Act

    In 2021, the act was amended to impose new equal pay compliance requirements and create new obligations for private employers with more than 100 employees. Then, in 2022, the Illinois Department of Labor finally provided some guidance for employers on those new requirements. Most recently, on February 16th, 2023, Illinois legislators introduced a new pay equity bill that would amend the act again and require organizations with at least 15 employees to include benefits and pay scale information in job postings. Pay scale and benefits include the wage or salary, or the wage or salary range, and a general description of the benefits and other compensation the employer reasonably expects to offer for the position.

    Understanding The Latest Changes

    The 2023 bill, HB3129, or Equal Pay Transparency Act, is making its way through the Illinois House quickly. If passed and signed into law, it would again amend the Illinois Equal Pay Act and substantially change how employers post jobs in Illinois. The following are changes you’d be required to implement if passed:

    • Disclose the salary range for any job opening
    • Include a description of the benefits and other compensation offered with the position, such as health care, retirement benefits, and paid time off (PTO)
    • Include a statement in job postings indicating that they do not discriminate based on gender, race, or any other protected characteristic 
    • Provide this information to employees who are being considered for promotions or transfers within the company 

    This would help ensure that employees are aware of the salary range for the position they are being considered for and any other compensation or benefits that may be offered. The gender pay gap has been a longstanding issue in Illinois and across the country. According to the National Women’s Law Center, on average, women in Illinois earn just 80 cents for every dollar earned by men. This gap stretches even farther for women of color, with African American women making just 64 cents and Latina women earning 52 cents for every dollar earned by white, non-Hispanic men.

    Don’t Wait; Start Now!

    While we wait for the decision of the latest Equal Pay Transparency Act in Illinois, take action now to get ahead of your competition. Partnering with a professional employer organization (PEO) such as GMS will help you every step of the way. We help Illinois businesses prepare for this bill’s implementation by providing guidance on best practices for pay equity and compliance.

    At GMS, our HR experts can conduct a pay equity audit to identify any pay disparities that may exist within your organization. In addition, we help develop a compensation strategy that’s consistent with the requirements of the new law, which includes the following:

    • Developing salary ranges for job positions 
    • Review benefits packages
    • Ensure job postings include the required information 

    We aim to keep you up to speed on the latest changes to ensure you remain compliant. The last thing we want is for you to incur a significant find due to overlooking a detail in the updated regulations. Contact us today to learn how we can protect your business. 

  • In today’s highly competitive job market, attracting and retaining top talent is crucial to the success of any organization. Companies can achieve this by implementing pay transparency policies that provide employees with clear information about their compensation and benefits. Not only does pay transparency increase trust and job satisfaction among workers, but it can also lead to more productive employees.

    What Is Pay Transparency?

    Pay transparency is the practice of openly communicating information about compensation with employees and candidates. Some companies share all salary data publicly, while some disclose how each team member determines salaries internally. Many employers share salary ranges so team members understand their earning potential in a given role.

    The following are several benefits of pay transparency:

    • Attracts more talent
    • Increases productivity 
    • Provides a better candidate experience 
    • Increases employee trust and retention

    Studies show that disclosing salaries may motivate employees to work harder. 

    How Pay Transparency Makes For More Productive Workers

    Pay transparency can have a significant impact on employee productivity. When employees clearly understand their compensation and how it compares to their peers, they feel more valued and motivated. In addition, pay transparency promotes a culture of fairness and equity in the workplace, improving employee morale and reducing turnover.

    When employees feel they are being compensated fairly for their work, they’re more likely to be satisfied with their jobs and put forth their best efforts. Pay transparency facilitates open communication between managers and employees, leading to better goal-setting, management, and overall team performance. By increasing transparency around pay, organizations can create a more engaged and productive workforce, resulting in a stronger bottom line.

    The Assistance Of A PEO

    Every business owner wants productive workers, right? While there are many steps you could take to make a more productive workforce, you may need to start thinking outside of the box. Pay transparency is your first step in that direction. When you partner with a professional employer organization (PEO), they help you craft job descriptions that include salaries, potential bonuses (if applicable), and so much more. If your employees want more transparency around their pay, give them what they want – it’s that simple.

    A PEO such as GMS handles all of your back-end administrative work that you don’t need to spend countless hours on. Shift your focus to growing your business, and let us handle the tedious tasks. Contact us today to learn how we can help your business become simpler, safer, and stronger.

  • Recently, pay transparency has become one of the hottest topics for businesses. Before we jump into the reasoning behind it, let’s discuss what pay transparency is. Pay transparency is the practice of openly and proactively sharing information on organizational compensation practices, including the following:

    • Pay rates for specific positions 
    • Pay increases
    • Bonuses or commission structures 
    • Benefits 
    • Retirement plans
    • Or any other specifics about pay

    It’s essentially viewed as a way for employers to build trust with employees and ultimately boost engagement and productivity. Companies have different degrees of pay transparency ranging from providing pay grades for job titles to offering a full list of salaries for everyone at the company. While this topic can be controversial to some individuals, many desire transparency within their organizations.

    Benefits Of Pay Transparency

    Typically, many employees and employers believe that sharing how much you make is off-limits. However, with the current labor market, pay transparency could be your best friend. Pay transparency and listing salaries on job postings have become increasingly popular amongst businesses that are struggling to find and retain top talent. Glassdoor found that 63% of employees prefer to work at a company that discloses pay information over a business that does not. The following are the benefits of pay transparency:

    • Closes pay gaps
    • Creates happier and healthier employees
    • Increases employee retention
    • Vets out those with different salary expectations immediately from the recruiting process
    • Fewer salary negotiations will be needed
    • Access a wider pool of quality talent
    • Higher productivity 
    • Streamlines your hiring process

    The Disadvantages

    While there are many benefits of pay transparency, this topic can be quite controversial by raising unnecessary concerns and creating problems among team members. However, there is something to be said about the transparency of employees who perform the same job, and they should be compensated equally. In addition, you must consider the length of employment, levels of training, and overall experience. Ultimately, it’s challenging to apply a standard pay rate and maintain fairness while attempting to showcase equality.

    The following are disadvantages/challenges business owners could face when implementing pay transparency:

    • Comparing pay to other employees
    • Pay difference could be taken out of context
    • You may end up paying unnecessarily higher salaries
    • The potential loss of qualified job candidates whose salary requirements differed from yours
    • Employees may have privacy concerns
    • The work environment could suffer
    • This could make the pay gaps even more obvious since it will be open to the public

    Current Pay Transparency Laws

    Equal pay laws exist in nearly every state; however, laws requiring businesses to provide pay transparency are still a trending topic. The following states/cities have pay transparency laws:

    • California
    • Colorado
    • Maryland
    • Nevada
    • Jersey City, NJ
    • Ithaca, NY
    • New York City
    • Westchester County, NY
    • Cincinnati, OH
    • Toledo, OH
    • Rhode Island
    • Washington

    In addition, each state has different laws that employers must comply with. The following states require employers to provide salary ranges:

    • California
    • Colorado
    • Connecticut
    • Maryland
    • Nevada
    • Rhode Island
    • Washington

    Additional information can be found for each state here

    Is It Worth It?

    When you weigh the advantages and disadvantages of pay transparency, you’ll see that both are significant. There are still many questions that need to be answered about whether this is the right way to handle pay transparency or not. We understand how complex it can be. As more and more states begin implementing pay transparency laws, it’s essential that you stay up-to-date on the latest laws and regulations. When you partner with GMS, we make it easy for you. If you choose to list salaries on your job postings, our HR experts work with you to ensure they’re accurate and gaining attention from top talent. 

    Angelina Santiago, GMS’ Recruitment Specialist, explained, “There are a handful of reasons why companies should implement pay transparency. It exhibits pay equality and closes pay gaps, ensuring that employees are being paid appropriately. In addition, it creates happier employees that are being compensated fairly, which makes them feel appreciated. It also increases employee retention while creating a high-trust organization. Finally, it creates a better recruitment process for the company to attract high-level candidates.” 

    Contact us today to learn more.