Pay Transparency: The New Frontier and What It Means for Everyone

A while back, I caught wind of a quirky job ad from the city of Los Angeles looking for a graphics designer. It was made (very poorly) in MS paint. I laughed at the ironic joke, but then noticed the salary range: $46,708-$103,230. Since then, I’ve seen even more ridiculous ranges in districts that have mandated pay transparency. This has become somewhat emblematic of where pay transparency efforts are landing: in a space between sincerity and showmanship. 

Add in the complications of things like remote pay parity (should I pay my workers in cities with a lower cost of living a lower salary for the same job?) and pay transparency quickly becomes a bit of a can of worms for employers and employees alike.

What’s the state of play globally?

Globally, we’re starting to see the practice really start to gain traction. In the US, Colorado paved the way in 2019 with a law requiring employers to disclose salary ranges in job postings. NYC followed in 2022, requiring “good faith” salary ranges in any job ad for roles in the city or performed there remotely, but the wiggle room on what is “good faith” quickly surfaced. Citi famously posted viral ranges of $0 - $2 million, and NYC authorities quickly flagged overly broad ranges (e.g. $150K–$225K; $18–$48/hr) as not in “good faith”. While a new proposal seeks to raise the bar, this highlights the danger of rushing pay transparency into law without proper forethought.

In Europe, all EU member states must implement the Pay Transparency Directive by 7 June 2026. While this will not require companies to publish salary ranges in job postings, candidates must receive clear salary information before the first interview where pay and conditions are discussed. 

Back home in Australia, while pay transparency is not yet law, “pay secrecy” clauses were banned as of June 2023, under the Secure Jobs, Better Pay Bill, which essentially grants employees the right to discuss their pay without negative consequences.

Meanwhile, hiringlab reports that over half of US job listings now include salary info regardless of law, boosting applications by roughly 30%, and drawing 75% more engagement from candidates. Our takeaway? It’s not just legislation, it’s a market shift. It’s going to happen, so you might as well be proactive and plan for it.

Does WGEA Move The Needle for Candidates?

In Australia, the Workplace Gender Equality Agency (WGEA) now publishes detailed employer-level pay gap data, gender pay differentials by quartile, executive pay, and more. More than two-thirds of employers conduct formal pay gap analyses; many are integrating targets and linking DEI outcomes to leadership pay.

But do job seekers care? Direct evidence is sparse, as there’s not really a lot of first-hand research on whether WEGA reports directly influence candidates' decisions. But generally speaking, more information is better than less when it comes to decision-making, so it’s likely to be having either a positive or neutral effect.

“I’m finding that candidates are increasingly expecting more clarity and information up front when considering a role. Just as understanding flexibility and remote work policies are important so that candidates can determine if the role fits their needs, candidates don’t want to go through multiple interview rounds only to find out the role is outside their salary expectations.”

notes Caitlin Clements, TA Leader and HR Tech Consultant.

When salary data is accessible, candidate expectations shift. Transparency signals values. And when employers speak clearly and honestly, the competitive advantage shifts to them.

Remote Work’s Dark Side: Offshoring by Any Other Name?

Here’s where it gets tricky: transparency and remote work can inadvertently fuel offshoring. If every candidate sees your salary bands, your cost structure becomes transparent as well, and remote hires might wield that info to push compensation up, or conversely, undercut local talent with lower-cost equivalents. Is it fair that someone living in the US mid west, Bali or the Philippines, where the cost-of-living is considerably cheaper than metropolitan Los Angeles, London or Sydney, is compensated the same?

GitLab considered the same question and found its answer in ‘Radical Transparency’. While GitLab doesn't currently publish salaries in their job adverts. If a candidate is accepted for a screening call they will gain access to GitLab’s compensation calculator. Candidates input just a few career details and learn what they can expect to be paid. 

My personal view? Fair pay should be context-based, recognising location and cost of living, and not flat across the board. Be transparent, yes, but also thoughtful. An honest, tiered pay structure can avoid both exploitation and unintentional outsized cost comparisons. 

"You Get What You Pay For"—Honesty Does Smooth the Path

We all know the saying. If you’re listing salaries as lip service, or worse, as a stalling tactic, you're undermining trust, and wasting everyone’s time. Conversely, when you show real, defensible ranges, narrative-backed with market rationale, everything flows better. Candidates self-select, negotiation is efficient, and alignment is stronger.

Even soft skills job ads followed by WGEA show that transparency helps employers with equity outcomes. And when the process is clear, internal tensions ease, particularly around under-paid vs. top performers.

“Making the decisions to be transparent with our salary bands forced us to take the time to really consider and be clear on our philosophy. Now we can explain our approach openly and consistently across the company, and the benefits have extended far past improving hiring efficiency or budgeting. It has built trust with our employees because we can explain the ‘why’ behind our decisions when it comes to compensation,”

Caitlin Clements, TA Leader and HR Tech Consultant.

RTO and The death of the digital nomad

During the pandemic, the concept of digital nomads, that is, working in a highly-paid country such as the US and claiming a full US salary on paper, while living in a much cheaper country like Thailand in person, were, if not outright condoned, at least given a bit of a “don’t ask, don’t tell” status. After all, if we were all being forced to work-from-home anyway, did it really matter if you were locked in a shoebox apartment in the Melbourne CBD or sipping mimosas in the Bahamas between Zoom calls?

But the clock is running out on the digital nomad. Return-to-office (RTO) is the obvious killer. Companies want their employees back in their offices, and the commute from Phuket to San Francisco isn’t really feasible. RTO is another “when” not “if” trend, and it’s only a matter of time before the majority of workplaces implement it. Even here in Australia, which really embraced the WFH revolution and has been reluctant to RTO, the wheels are slowly turning.

If RTO alone weren’t enough, pay transparency is really going to be the final nail in the coffin. As we’ve said, if you’re forced to be transparent with your pay, then is it ethical, (or even legal?) to pay someone living in Thailand (median annual salary $7,000 USD) the same as someone living in the US (median annual salary $46,000 USD)?

Final Thoughts — Why Real Transparency is Worth It

1. Transparency isn’t going away. Laws, candidate expectations, and competitive shifts are all pushing in this direction. Don’t be behind the curve wondering where all your candidates have gone when your competition is offering full pay transparency and you are lagging.

2. Don’t be the $0–$2M job ad. Present narrow, defensible ranges, and back them with context, research, and evidence.

3. Remote work demands nuance. Balance global equity with local fairness. Consider the employee perks a full-time remote worker enjoys and their cost to the company in terms of additional expenses incurred (travel etc).

4. Honest pay practices attract trust. You might spend an afternoon clarifying pay ranges but save hours in alignment headaches later. There’s nothing worse than finding the perfect candidate only for them to have a complete non-negotiable with your pay range.

We’re at a tipping point: gen­uine pay transparency can transform everything from sourcing to retention. If we do it right.