MANDATING COMPANIES TO PUT SALARIES ON JOB ADVERTS...WILL IT ADDRESS PAY INEQUALITY?

Duration: 3:28 577 transcript words EN summary

Video summary

New York City has introduced a new mandate requiring companies to list both minimum and maximum salaries on job advertisements, aiming to address long-standing pay inequality. This policy stands in stark contrast to practices in the United Kingdom, where employers are legally permitted to ask candidates about their current earnings, often creating pressure for disclosure that does not exist across the Atlantic. The shift reflects a growing belief among many workers that transparency is essential for leveling the playing field, ensuring that individuals receive fair compensation regardless of gender or immigration status, which have historically been factors in wage disparities. The initiative has sparked significant debate regarding its potential effectiveness and unintended consequences. On one hand, proponents argue that revealing salary ranges prevents candidates from being underpaid simply because they lack negotiation skills or come from different backgrounds with less local experience. However, critics worry that this transparency might disadvantage larger companies capable of offering higher wages by allowing them to poach top talent more easily than smaller firms can compete against fixed pay scales. Additionally, there is skepticism about whether listing a range will truly eliminate the need for negotiation, as employers could still offer amounts at the lower end or attempt to negotiate upwards from the stated maximum without violating new rules. Ultimately, while some fear this approach moves hiring toward a rigid "one size fits all" model that stifles flexibility, others remain optimistic about its ability to foster fairness in the recruitment process. The discussion highlights a complex tension between protecting workers who might otherwise accept low offers and maintaining an open market where negotiation is considered part of securing employment. As New York City implements this change, observers will be watching closely to see if it successfully closes wage gaps or merely shifts the dynamics of salary negotiations without solving deeper structural inequalities in how jobs are valued and compensated across different industries and demographics.

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i thought this was really interesting and this this piece of news uh was around christmas new year so in case you missed it new york city uh will make it mandatory for companies to disclose minimum and maximum salaries on job adverts it's illegal to ask candidates what they're currently earning which is interesting because in contrast in the uk for example uh you can ask and it's a bit odd if the candidate doesn't disclose that's the kind of vibe and feeling in the uk u.s is really different been really interesting to to recruit in the us and these states and not asking people um pros and cons to it i think let's go into it the disclosing the salary i think is also interesting and i did a poll on linkedin and i asked mandating companies to disclose challenge on the job adverts brilliant idea 83 percent of people no way 14 and some people said other please comment two percent uh i had 568 votes a decent decent number of people voted it's a nice cross section i think it's i think it's super fascinating and and there's two sides to this and and a bunch of things in the middle clearly but but praise to this um you know people feel that it will you know be fairer it will level the playing field does it really matter what you're earning now well you could be earning 50 000 you could be earning 200 000 but this role pays a hundred thousand uh or let's say eighty thousand to a hundred thousand if we're doing minimum at max would you like to apply that's it and and it's interesting because a lot of people um for a bunch of different reasons sometimes are underpaid you know there's the gender pay gap people talk about and there's often people that have come into the country from a different place uh with different experience they often paid a bit less you know there's all of these kinds of conversations happening and people feel that it's fairer you know people should be paid the same for the same job great point and whether this makes that happen let's see but i think it's it's a certainly an interesting step forward and it'll be really interesting to see on the other side of the coin um you know people say look negotiation's part and parcel um you know people need to learn to negotiate better people fear that some of the larger companies who can perhaps afford to pay more might end up getting better talent um and yeah people aren't sure on this side of the conversation whether or not it will really have the impact that they're hoping for and you know speaking cynically there's still going to be some you know negotiation and what happens if someone comes in and they're like okay look you said you pay 100 but actually i want 120 i want 150 or i think that's still room for negotiation i think it's it's really interesting but then we're moving a little bit towards this you know one size fits all and i think you have to be careful so let's see where it lands uh i think i'm i'm positive i think it's going to be really interesting i think uh it will probably be fairer and it'll be interesting to see how that all develops