What is Pay Scale Transparency?

California now requires pay scales for all private employers with 15 or more employees.

Historically, pay scales were used in public sector companies and union environments.

Although any company within any industry can and should establish pay scales because it is fiscally sound, many Human Resources practitioners do not know how to put a pay scale together and they can be a lot of work. A pay scale is simply the range of pay that employees are paid for a job, for example some are paid $16.00/hour and others are paid $20/hour and then others are paid somewhere in between.

Pay Scale Transparency requires employers to be prepared to share pay ranges with applicants and job holders. This means employers need to understand the who, what, when, where and why a job pays what it pays. It is the value of the job. Pay transparency means that this can be distinctly seen and understood by all.

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What is a Pay Scale?

Simple pay scale

Implementing a pay scale replaces the traditional salary/wage negotiation and can provide a road map for new employees to see their earning potential within the company while holding the same position. Employees benefit from knowing what to expect in terms of growth and compensation within a given company and can plan a future for their career path more effectively. Having this knowledge provides motivation for individuals to continue within the same organization working to hone their skills, continue their education, and work toward expertise in their role to increase their value as an employee.
Pay Scales also show pay inequities in a clear unbiased perspective once established.

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