Pay ranges on job descriptions have been almost universally lauded as a good thing. Four in 10 workers responding to a 2024 survey by Robert Half said they lose interest when there is no salary transparency in a job listing, for example. Similarly, employer-side data demonstrates recruiters’ belief that pay transparency can help attract talent and help with overall employer branding by improving workplace culture.
However, a new study from Cornell University shows the importance of how employers go about implementing pay transparency. In the Applied Psychology Journal, a study highlights how a wide pay range can deter women from applying for certain jobs.
Why is this the case? Women workers, compared to their male counterparts, seem to be accounting for lesser drive or ability to negotiate a higher salary within that pay band, researchers suggest.
“Across our four studies, we consistently found that women show a stronger preference for jobs with narrower salary ranges compared to men, and that this preference is associated with less assertive negotiation behaviors,” said Alice Lee, assistant professor of organizational behavior, in a statement Wednesday.
Women workers were also more satisfied with a midpoint salary offer and, when they did negotiate, they asked for less money. “In other words, the way these laws are being implemented may be perpetuating the very pay gaps they were designed to close,” Lee said.
Many cities and states require pay transparency in job postings. This includes California, New York and Washington, D.C., among other municipalities.
Researchers from Washington State University found similar issues in a study released in January 2024, noting that using wide pay ranges deterred applicants and hurt recruitment. Participants called a $100,000 pay range used in the study “dishonest,” “disingenuous,” and “ludicrous.”
“Raises, bonuses and future opportunities are often tied to your initial salary, so a lower starting point doesn’t just affect your first paycheck,” Lee said. “It ripples through your career.”
