More than a dozen states now require companies to provide pay ranges in job postings.
New research suggests that these ranges influence applicant behavior in ways employers likely did not intend and may be undercutting the pay equity goals these pay transparency laws were meant to advance.
Why it matters: As pay transparency mandates spread across the globe, companies should view posting pay ranges as more than a box-ticking exercise. Overly wide ranges and a lack of context can further gender-based disparities and distort your applicant pool.
The research: The project included four studies spanning an archival analysis of millions of postings, controlled experiments, and a field experiment with real job seekers. The scientifically rigorous results were published in the Journal of Applied Psychology.
Key findings:
- Women showed a stronger preference than men for jobs with narrower posted pay ranges, a gap the researchers attribute to higher risk aversion
- Candidates who selected narrower ranges negotiated less assertively—they were more satisfied with midpoint offers and less likely to counter, and submitted lower counteroffers
- Adding explicit context about the typical starting salary and the criteria used to determine pay meaningfully reduced the gender gap in range preferences
The downstream problem: If wide ranges disproportionately deter certain candidates from applying—and if the applicants they do attract negotiate more aggressively—companies may be systematically reproducing pay gaps under the banner of transparency.
The structure of the posting is effectively pre-sorting the applicant pool and shaping negotiation dynamics before a recruiter ever picks up the phone.
Considerations for CHROs:
- Pair ranges with context. Publishing a $90K-$180K range technically complies with most laws but tells candidates very little. Consider including the expected starting salary and the factors that determine placement within the band.
- Audit range widths. Extreme spreads may reflect internal disagreement about leveling or may simply preserve negotiating leverage while checking the compliance box. Tighten ranges wherever possible.
Measure the funnel. Track whether posted pay ranges correlate with applicant demographics and negotiation outcomes and correct where necessary.
