Employers Are Deflating Salaries in Job Listings to Keep Pay Down
Some employers are posting artificially low salary ranges to keep wages from ballooning and to avoid alienating existing workers, but it could easily backfire
Jobseekers stand in a line for an interview at a job fair in California.
Photographer: David Paul Morris/BloombergJobseekers are learning that there’s the top end of the pay scale, and then there’s the real top end.
As more companies disclose pay ranges in job listings, especially in places like New York City and Colorado where it’s now required by law, what’s listed as the maximum salary may be closer to the middle, according to multiple HR executives and pay experts. Some employers are trying to limit the demands of potential hires seeking top dollar, while preventing existing workers from finding out they are underpaid. Range deflation comes up often on industry webinars, but compensation specialists and some human-resources chiefs worry it could backfire.