Let’s hop in the Hot Tub Time Machine and return to when recruiters were partying like it’s 1999, right before Y2K. If you were a recruiter back then, you might recognize some of these dinosaurs: computerjobs.com, hotjobs.com, and headhunter.net. Back in the day, job postings had salary ranges on these job boards. It was standard practice. Recruiters wanted candidates to apply, and salary ranges made job postings more compelling.
But as the world turned, so did the job market. It became more competitive, and things shifted. Companies and recruiters started holding back salary details, worried that sharing too much would give competitors an edge.
I even had HR managers frantically email me to remove salary ranges from LinkedIn job postings. It was the new norm. No salary info was ever to be posted anywhere. Ever. The result? Job seekers were left guessing, and many recruiters preferred it that way—it gave them more wiggle room to negotiate.
Fast-forward to today, the recruiting world has flipped to posting salary ranges, but this time, it is driven by legal requirements. Several states are now mandating that companies include compensation ranges in job postings.
At the ERE Recruiting conference, some of us discussed the Salary Transparency laws sweeping across the country like wildfire, sparking heated debates.
So, here’s the million-dollar question: Does salary transparency help or hurt recruiting?
In states where these laws are in play, opinions are divided. Some recruiters feel it ties their hands when it comes to salary negotiation and even opens the door to pay compression—where salaries for new hires start to match or surpass those of tenured employees. It is not exactly a morale booster for your existing team, especially since you just rolled out RTO mandates for all employees. Does anyone remember casual Fridays?
On the flip side, there’s a growing camp that sees transparency as a competitive edge. Job seekers love it when employers are upfront about pay—it builds trust, reduces time wasted during the screening process, and sends a clear signal that the company values fairness. Plus, let’s be honest. How much time has been wasted with a candidate only to find out he/she wanted a gazillion dollars? If everyone knew the salary range, it would save a lot of time and headaches.
Interestingly, many large companies are jumping on the transparency train even if they’re not legally required to. They’re proactively adopting these practices to stay ahead of the curve. With more laws set to take effect in 2025, Talent Acquisition and HR leaders are scrambling to put together guidelines for setting salary ranges and crafting communication plans explaining the “why” behind these changes to employees and candidates.
When done well, salary transparency isn’t just about compliance—it’s about showing candidates (and current employees) that you’re serious about equity and fairness.
Here’s a snapshot of what’s happening across the U.S.:
What is the overarching goal of these laws? Promote fairness, reduce wage gaps, and give job seekers more leverage during their job searches.
What’s Your Take?
As recruiters and TA pros, we’re central to this transformation. Salary transparency can reshape how we hire, negotiate, and build trust with candidates. But it’s not without challenges.
What do you think? Is this a step in the right direction, or are we opening Pandora’s box?
