What is Pay Transparency and Why It's Important for Hourly Jobs
- Alexis Miller
- 2 days ago
- 4 min read
While starting a new job often comes with levels of uncertainty, a rise in pay transparency is helping to ease some of that guesswork for today's job seekers. Once considered taboo, pay has become a key topic in today's hiring discussions. In fact, more than half of U.S. job ads now list pay range information, and this trend is only growing.
What is Pay Transparency
Pay transparency is the practice of openly sharing compensation details, likely hourly wages, at various stages of the hiring process. Employers that set clear expectations from the start, even in the job description, help foster trust and ensure fairness for both job seekers and employers.
What Should I Know About Pay Transparency
Pay transparency is reshaping the way people find and apply for hourly jobs. Whether you're a job seeker hoping to avoid any guessing games or an employer who is looking to attract the right kind of hourly talent, being upfront about pay is quickly becoming the norm. As legislation expands and pay expectations evolve, it's important to understand how pay transparency impacts you.
1. Pay Transparency Laws and States Affected
There’s no federal pay-transparency law... yet. But a tidal wave of state policies has already hit 14 jurisdictions, with many more expected soon. States like New Jersey, Vermont, Illinois, and Massachusetts rolled out new posting mandates just this year.
In this landscape, hourly employers, who often rely on flexibility or manage hiring for multiple locations, need to be proactive. Using tools like Juvo Jobs allows you to be open about pay at the beginning of your hiring process, as each job posting requires a pay range, giving employers an advantage when it comes to attracting local talent.
2. Why Pay Transparency Attracts Better-Fit Applicants
Hourly workers are time-strapped and value clarity. Listing pay upfront allows candidates to immediately determine if the role meets their needs. Plus, 82% of job seekers are more likely to apply when pay is visible, meaning more applicants and critically, more of the right candidates who fit an employer's budget and purpose.
Research also shows that job ads with salary information get around 30% more applications, often from higher-quality candidates. Our partners at Würk, who work with compliance-focused businesses every day, have also noticed:
"Pay transparency helps both applicants and employers save time. By being open about pay structures, applicants can focus on job opportunities that meet their expectations, while employers can attract the most qualified candidates who are aligned with the compensation being offered."
If you’re a compliance-focused organization needing more clarity on pay transparency, check out THIS article.
3. Trust That Goes Beyond Hiring
Pay transparency lays the foundation for trust. Employers who are open about pay actually experience a 59% lower likelihood of employees leaving their organization. Transparency builds morale and clarity, helping give employees a roadmap for growth.
High turnover is common in hourly work, but transparent pay can change that. When hourly workers know what to expect, they feel valued, often leading to better retention and stronger word of mouth. When you lead with honesty, people notice, and your employees will stick around (and tell their friends!).
How to Build a Pay Transparency Strategy
Only 1 in 5 U.S. companies have a clear pay transparency strategy, with breakdowns typically happening due to poor manager communication. Here are a few tips to help hourly businesses that haven't yet addressed pay transparency:
1. Take a fresh look at your hourly wages
Are your pay rates competitive for your area and industry? Review what you're currently offering and how it's showing up in your job postings.
2. Know your state and local laws
Pay transparency rules can vary depending on where your business operates, even for part-time or hourly roles. Make sure you understand what’s required where you’re hiring.
3. Add pay info to every job post
Don’t wait until the interview to talk 'money.' Put your pay range right in the listing to save everyone time and attract candidates who are already aligned.
4. Get your managers on the same page
Whether it’s a store supervisor or shift lead, anyone doing interviews should know how to talk about pay confidently and clearly. Give them the tools to explain how your pay works.
5. Track what's working and what's not
Keep an eye on who’s applying, who’s sticking around, and how turnover changes when you’re more open about pay. Adjust your ranges and language as you learn what resonates with your workforce.
Final Word
Pay transparency is quickly becoming a "must-have," especially in the hourly workforce. For industries like retail or hospitality, listing hourly rates upfront can be the difference between a slow hiring process and one that runs efficiently.
With legal momentum, happier workers, and faster hires, pay transparency is smart business, which is why Juvo Jobs built it into the DNA of our platform. So, as wage laws expand and hourly ecosystems evolve, being clear about pay will become a business' competitive edge and set the foundation for honest and effective hiring.
Join the Juvo Network or become a Juvo partner today! Download the Juvo Jobs app to see local jobs in your neighborhood.