Pay transparency doesn't mean salary negotiations are off the table

Pay transparency laws can make it easier for prospective employees to have clearer expectations around the value of a role. Empowering both employees and HR leaders around compensation can help both sides of the table shine.  

Currently, seven states as well as individual cities across the U.S. have salary transparency laws in place that require an organization to include the minimum and maximum pay ranges in job postings. While these laws can help bridge pay gaps and create a more equitable experience for all employees, getting the compensation conversation right from the start can make an organization stronger and prevent quick turnover. 

"You'll have an unmotivated employee if they find out they're not being paid their worth," says Rebecca Ahmed, founder and chief energy officer of consultancy Energetic Impact. "If everyone's working in partnership, you're going to get a lot further, and it'll be a lot easier." 

Read more: Pay transparency has left middle managers unprepared to defend salary discrepancies 

Ahmed recommends that employees do their research on the market value of their role and how their experiences align. On the employer side, being open to negotiating outside of a listed salary range can immediately show talent that the organization is open to collaboration, and that they care about employee well-being. 

Ahmed shares her top negotiating tips for both HR leaders and prospective applicants, and why collaboration is key when it comes to discussing compensation.  

Pay transparency is a good thing for employees, but that doesn't necessarily get them off the hook from continuing to negotiate and ensure that their pay is fair. Why is this still a skill that employees need to be practicing?
Because they need to understand the job description that they're applying to and how it aligns with where they are in market data. Based on the skills or the experience or the education that's needed for the role, a candidate should always be able to speak to that and say, "Oh, I have my masters, this is why I should be on the higher end of the scale," or, "I've done this for larger scale employers, this is also why my salary should be pushed higher." It's not so much negotiating as having a conversation and understanding the art and science behind that job description and market data so you are well-versed to be able to communicate your worth.

What prevents employees from doing this research and coming to an interview prepared for these conversations? 

I'm in HR, so I get to see it all day long. If you don't do that in your role at all, you're not going to feel comfortable with it. This just takes practice. And in terms of communicating your worth, a lot of people in accepting their role, they're coming from a place of fear — they need that job. So instead of speaking up for their worth, they're like, "Oh, let me get my foot in the door and then I'll deal with this later as I show them how well I can work." I always discourage people from doing that, because when you go in with the right salary, you're continuously progressing from that. But if you're starting behind, it's much harder to pick up that gap that you allowed in the beginning.

Read more: Just 57% of women are comfortable asking for a raise 

Do you think employers sometimes take advantage of that fear or an employee's lack of knowledge around this topic? 
100%. I mean, I've had amazing employers who haven't, and leadership that, when I discuss compensation with them, they want me to review it and give feedback. I've had others who will just accept someone even if it's on a lower scale. We're seeing that less and less, because of the impact it has on the culture: all of a sudden, you have an unmotivated employee, because they find out they're not being paid their worth. It really lowers someone's energy. I'm increasingly seeing from my recruiters that they're having conversations with hiring managers, and really guiding them to an offer that aligns with the skill set they're bringing. You'd rather pay properly on the front end. 

How can employers facilitate those conversations so that they're presenting a fair package for both sides? 
I love this product from PayScale which shows you a breakdown of your compensation: your salary, what your bonuses are, what commission opportunities you have, benefits, etc. It's really important for an employer to have the tools to be able to have that communication and say, "This is everything that we're compensating you for, let's have a conversation. Are you motivated by this? Does this align with the market data you're finding?" It's really important that HR is very involved in that, and they get well versed with communication with the hiring manager. 

How can the prospective employee, the HR leader and hiring manager all work together as a team on these efforts? 
You have to show that that's part of your culture. So not only do you have the salary posted, but there should be a comment at the bottom of a job description saying something like, "We love having partnership conversations about your compensation to ensure that we are motivated and you are motivated to step into this role." People will get curious. How exciting would that be for both sides to know that we've come to an agreement, and we've really flushed out everything. 

Read more: Pay transparency laws support equity — but will they force employers to overextend their budgets?

HR is not just human resources anymore, right? It's a people services strategy, and you need to be thinking bigger than just this one offer. How do you treat your people? How do you motivate them? And how will you ensure that you can empower them to execute on their goals and really complete the vision and the mission of your organization? Again, if everyone's working in partnership, you're going to get a lot further, and it'll be a lot easier. 

How can employers and employees get better at that? 
I rely on having training so they can have conversations about money. Constantly have that conversation: talk about money, talk about the bonus structure, talk about benefits and how that's impacting the organization. When you continuously practice anything, you get so much better at it. 

For employees, go find your market data, and practice. Go have a conversation with your mom or your family members or your friends and talk about money. I'll tell women, who don't like that feeling, to go bargain at the market or something to just get used to sticking up for yourself in that way.