Data Helps Associations Navigate Pay Transparency Laws and Drive Member Value
Pay Transparency laws are making waves in states across the U.S. with 8 states already having measures in place. In California, as of January 1, any employer with 15 or more employees must “include the pay scale for a position in any job posting. In addition, the pay scale must also be given to any third party that the employer engages to announce, post, or publish a job posting. The third-party is required to include the pay scale in its announcement, posting, or publication of the job posting.” Additional states, including South Carolina, currently have draft legislation in place.
With 98% of workers favoring greater pay transparency, it’s only a matter of time before laws are enacted in every state.
So, what does this mean for associations and their members? As the hub of data, associations play an important role in helping their member organizations ensure that their pay scale is in line with their respective industry. Most businesses wish to ensure they are offering competitive pay, but don’t necessarily want to be offering the lowest or highest wages. The best and safest place they can truly garner this data is via the association. Sure, there is aggregate compensation data readily available on the web, but it’s not as specific as most companies need, specifically now with the pay transparency laws taking the states by storm. At DB, we get requests all the time from businesses wanting us to provide compensation data for a specific position in their region. We always refer them to the industry association and explain they can provide the granular data they are researching.
So if a member came to you today, would you be able to easily provide them with real-time granular compensation data? Many associations conduct compensation surveys annually or bi-annually, but they do so in a static manner. They conduct a survey, spend time manipulating the reports and then distribute those reports back to their members. But those reports become outdated pretty quickly. In addition, most of those reports are static and members aren’t able to filter to the granular level they need to get the data points that are useful. With new pay transparency laws going into effect, it will be more important than ever for associations to provide real-time compensation data that members can filter on their own time and to their own specifications. As associations, both professional and trade, look to add more value for their members in 2023, compensation data will become an increasingly powerful member benefit.
“Compensation in municipalities can be quite complicated because of the variety of job functions each entity encompasses. Add the numerous differences found in the operations of small town versus large city, and everything in between, and you have a wide range in the data being reported and the needs of each individual member. We were so pleased at how quickly Dynamic Benchmarking grasped these complexities and provided solutions that were ideal for our members.”
Learn how Dynamic Benchmarking can help provide data like the above to your members. Schedule your meeting with our team below.
