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Microsoft to include pay ranges in all U.S. job postings

By Nagasunder in Employment News, posted June 10, 2022

Microsoft has confirmed it will provide wage ranges in all of its job postings in the United States - a move that analysts believe could lead major firms to follow suit.

The tech giant says wage ranges will be disclosed in all internal and external job listings in the United States by January 2023.

From that point, companies with at least 15 workers in Washington state, where Microsoft's headquarters are situated, will be required to reveal wage ranges for each position.

The statute currently only applies to Washington stat.

Microsoft's plan, however, would extend "across the United States," according to the company.

Microsoft is seen as a forerunner among major corporations in terms of employment standards, and other large corporations are expected to follow suit.

Christine Hendrickson, a former partner at Seyfarth Shaw who is now the vice president of strategic initiatives at Syndio, which conducts pay analyses for large corporations, said: “I know several large multinationals that are on the brink of externally disclosing and they will do the same”

“Some have disclosed this information internally, but Microsoft is at the vanguard of including this information in all external job postings.”

Any changes may not ripple through big companies immediately.

Many employers don’t relish sharing pay data that’s long been kept secret.

Some other jurisdictions' pay range disclosure laws—there are currently six, including New York City—do not take effect for months, and companies have already lobbied to delay the practice.

But as employee expectations for pay transparency rise and the number of states that have approved laws -Colorado has one, and California and New York also have comparable measures pending, more firms may choose to embrace rather than resist the practice.

Hendrickson said: “It’s going to force others off the sidelines, when companies start acting, others are soon to follow. There will be more pressure to also be transparent in order to win talent.”

Microsoft referred to its decision some years ago to prohibit employers from asking job applicants about their wage history in its blog post.

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Many businesses adopted such methods, which were based on regulations in various states and towns that, if not implemented nationwide, would have resulted in a hodgepodge of rules and administrative hassles.

Being among the first could be a benefit for Microsoft. A range of smaller employers, such as Textio, already say they reveal pay ranges in all job listings, but Hendrickson couldn’t think of other global multinationals of Microsoft’s size that have made similar announcements.

“There’s a premium to going first,” she says. “They win trust in a really competitive job market."

Source: Forbes

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