Some say pay transparency narrows gender wage gaps and leads to more objective compensation policies. Others worry it is a draconian measure that limits organizations’ options during the hiring process.

While employers in many states may remain focused on providing salary information later in the hiring process, it is important to be prepared for the overall trend toward greater transparency. Starting in May, employers in New York City with four or more employees will have to post minimum and maximum salaries on job listings.

Rhode Island, Connecticut and Colorado already have similar requirements, and California may soon follow with its own law. That means employers who have tried to sidestep requirements by closing remote jobs to candidates where such rules exist may no longer find that a useful hiring tactic.

Jennifer Garrard, vice president for human resources at Brother International, says that posted salary ranges streamline hiring for organizations with predetermined budgets–because you don’t spend time with candidates you can’t afford. But a challenge arises when companies use different titles and salaries for similar roles.

“For companies looking to pay within market data, there is a risk that they will be outbid on job postings before candidates can even understand the full opportunity,” Ms. Garrard said.

Regardless of how you feel about pay transparency, to remain a competitive employer on the right side of the law, it is critical to understand how the legal tide is turning and implement new policies accordingly. Here’s how to be prepared:

• Examine your current job descriptions and compensation structure: Greater regulation of pay transparency can and should prompt you to refine internal best practices related to compensation.

• Be transparent with candidates about realistic pay: Posting the maximum possible salary for a role may lead to dashed candidate expectations because, Mr. West says, every candidate doesn’t have the skills and experience to warrant the maximum. So tell your candidates early in the interview process where in the range they are likely to fall.
   
• Conduct an internal pay equity audit: If there were
  discrepancies in employee pay throughout your organization, how would you know? It is worthy of an investigation and, as Ms. Garrard suggests, an internal audit will determine if there are gaps to address.

• Tout your rewards programs: Many candidates have a narrow view of compensation as simply base pay or salary. But there is usually a lot more your organization has to offer, and you should quantify these offerings wherever possible. “Tuition reimbursement, training and development, health insurance, optional benefits and recognition programs all demonstrate a commitment to employees,” added Ms. Garrard.
   
• Understand how your existing employees are affected: Some of the new laws include provisions for disclosing pay ranges to current employees. Pay transparency for new hires also means that existing employees may realize they are underpaid and will speak up accordingly. Plan in advance for how to handle feedback and disputes.

When considering the pay transparency issue, understand that while compensation is important, HR groups shouldn’t lose sight of what makes organizations most attractive to candidates and employees: a sense of purpose and inclusion.

Most organizations around the world have increased their 2022 budgets for raises compared with what they planned for last year, according to research from executive-search firm Korn Ferry. Of the roughly 5,000 respondents in 116 countries, 22% said they are using special incentives and bonuses more than they did before the pandemic, and 18% are making greater use of sign-on bonuses.

The research also showed that respondents are searching for ways beyond compensation to establish deeper connections with their employees. For instance, compared with a year ago, 40% of participants are investing more to improve leader effectiveness in building inclusion.

🎥 WATCH: New York is rolling out a new law requiring employers to list salary ranges on job postings. Similar laws in places like Colorado aim to even the playing field for applicants. But not everyone is embracing the changes.

The activity seems to be in line with the broader trend of Americans’ eagerness to get back to travel and leisure activities.

While many events are back for the first time since the pandemic and organizers expect more events this year, in some cases they anticipate fewer attendees compared with pre-pandemic levels.

• Dusting off schmoozing skills: Some eventgoers say they are brushing up on social skills while returning to professional conferences. The chance of facetime with potential clients and the ability for spontaneous chats with peers facing the same work challenges has been energizing. 
   
• Comfort and safety: Still in a pandemic, strict Covid-19 protocols, including mask requirements, proof of vaccination or negative test results, have been key in getting people back to networking events. For some people, getting back “on the gala train” is about getting used to living with the virus.

• With NYC’s Pay Transparency Law, a Sea Change Leaves Employers With Little Choice But to Update Pay Practices (Law.com)
   
• Pay Transparency Law Could See Movement in California (Axios)
   
• Highest Pay Increases in Years Won’t Match Inflation (SHRM)
   
• Companies Try to Limit Salary Bumps and Focus on Perks Instead (WSJ)

Alexandra Levit is a business and workplace author and speaker. She is the weekly columnist anchoring The Workplace Report. Yogita Patel curated and edited this newsletter.

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