So-called wage range deflation has garnered greater interest among some employers who are trying to limit demands from potential talent looking for the highest salary, while also keeping their current staff from discovering that they are underpaid. But some HR leaders say such approaches could end up bad for employers.
The new laws have heightened attention for employers and human resources teams on pay transparency and promotion of job listings, as previously reported. “Part of the challenge here is that pay transparency is new, so there is this fear among HR people about this new information, that people will not understand it,” says Melanie Naranjo, vice president of people at Ethena, a New York-based compliance training platform. “So the feeling is, 'Let's help cushion this, so we are not pressured.' Do I think it's the right approach? No.”
Jamie Coakley, senior vice president of people at Electric, which provides remote IT services for small- and medium-sized businesses, noted that “there are companies intentionally posting salary ranges below their actual salary bands for job seekers.”
“It's a risky choice that is not in good faith of what the salary will be, which is the entire purpose of the law,” Coakley said.