- Salary-transparency laws are increasingly common, but finding out what a job really pays is hard.
- Experts advise doing as much homework as you can on your own, and then being patient.
A growing number of cities and states have pay-transparency laws on the books, but finding out what a job really pays is not always straightforward.
New York, Nevada, Colorado, and Connecticut already have laws that require organizations to advertise a pay range for open positions up-front. California's law will take effect next year. Yet Bloomberg reporting suggests that these laws are ineffective. Some organizations post artificially low pay bands both to keep wages from rising and to avoid existing employees discovering they're underpaid, according to Bloomberg.
"It's sometimes hard to get a number," Linda VanDeventer, the VP of the compensation and career-strategies practice at Segal, a consulting firm focused on HR and employee benefits, told Insider. "There's a wide range of pay out there for a given position and it depends on a combination of the organization's compensation philosophy, the type of job itself, and supply and demand of labor in the market."
So, how can jobseekers uncover what organizations pay? The key, experts said, is to do as much homework as you possibly can about the company's pay and benefits, then be patient with the process as you await an official job offer. After all, the power dynamic shifts considerably once the hiring manager has decided that you're the leading candidate.
Talk to the recruiter
Headhunters and recruiters often screen job candidates by phone before a first official interview, and most share a pay range to make sure that the applicant and employer are on the same page. Company HR reps often provide the same service, so applicants should be prepared.
If the subject doesn't come up during the conversation, ask the rep directly, Erin Andersen, a career-transition coach in New York City, said. The HR rep might demur and say something like, "That's not information that we disclose," but you can at least try to get a ballpark figure.
Andersen suggested saying: "I want to ensure the salary for this position is aligned with my experience and qualifications. Could you please share the salary range offered for this position?"
Do your homework online and through networking
Due diligence is also critical. Resources like Salary.com and Payscale, which provide salary ranges for job titles and locations, complete with a breakdown based on your degrees, years of experience, and so on, are helpful.
Andersen advised conducting informational interviews with employees at the company. Scour your network to identify people with whom you have a connection — a school or former colleague in common, for instance. Then, explain that you're interviewing at the company and want to talk.
Be subtle. "Don't message someone and say, 'What's the vacation policy as this company?'" she said. "Instead, ask about their career and get them to open up. When you get around to questions about the company culture and benefits, their perspective will be very clear."
Take what they say about pay with a grain of salt, however. "There's a huge gap between what companies are offering new talent versus what they're paying employees who've been there a while," Andersen said.
According to LaborIQ, a compensation-data provider, salaries for new hires are 7% higher, on average, than the median pay for people already employed in similar positions. The discrepancy is in the double digits for many in-demand jobs across the tech and finance sectors.
Bide your time until you get an offer
Finally, be patient. And whatever you do, don't ask your would-be boss about money until it's clear that the company wants to hire you.
Research shows that hiring managers are less likely to hire candidates who ask about salary and perks during job interviews. The researchers theorize that managers only want to employ people who are motivated by the job itself. Of course, very few workers can afford not to care about things like pay.
But the lesson still holds, Anthony Nyberg, a professor at the University of South Carolina's Darla Moore School of Business, told Insider. After all, there's plenty of time for negotiating later. "You want to hold off asking about pay until the company is invested in you as a potential employee," he said.
That usually doesn't happen until your third or fourth interview. "The first one? They're looking for reasons to weed you out."