The Impact of Pay Transparency on Recruiting and Planning
Marisa Daspit is SVP of People at Ibotta, a 1000 employee Series D startup based in Denver, Colorado. Ibotta is a consumer-facing cash-back business and has given $1B back to consumers since conception.
Table of Contents:
- What is the CO Equal Pay Act?
- What was Ibotta’s stance on pay transparency prior to the law?
- What were your [negative] assumptions about the law and how have they changed with implementation?
- How has increased transparency affected recruiting and what has been your team’s response?
- How do you keep your pay ranges up to date and how did this impact your headcount planning process?
- How did you educate your workforce and effectively manage expectations as you became more transparent?
- How has pay transparency has impacted your labor budget, management, and annual planning?
- Are other states moving in the direction of greater pay transparency?
- Has the law actually helped with pay equity?
Excerpt: The Impact of Pay Transparency on Recruiting and Planning
4. How has increased transparency affected recruiting and what has been your team’s response?
We had to become pay transparent in the middle of the most aggressive talent market I have ever seen. The volatility has meant our original salary bands and career architecture may be subject to change and in as few as 30-60 days.
Within days of posting a job we know if our pay band is off because we won’t see the same volume of applicants. This helps us quickly calibrate our open roles to market rate.
It has also caused us to take a national compensation strategy where roles pay the same regardless of geography. If a role is earmarked at $80k in Denver, an out-of-state applicant in a less expensive geography knows what we are willing to pay and can negotiate accordingly.
