What is it about?
Faced with new legislation mandating pay transparency in job postings, many employers now advertise very wide pay ranges. This paper examines how the width of a pay range (rather than its level) influences perceptions of the organization's trustworthiness and beliefs about likely salary offers.
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Why is it important?
Depending on applicable laws, an employer may or may not have a choice about whether to include numerical pay ranges when advertising an open position. But doing so also necessitates choices about how to communicate and explain compensation, and this research shows that these decisions shape prospective applicants' reactions.
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This page is a summary of: Ambiguity in advertised compensation: Recruiting implications of nominal compliance with pay transparency legislation., Journal of Applied Psychology, November 2023, American Psychological Association (APA),
DOI: 10.1037/apl0001165.
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