Pay Transparency 2025: What Small Employers Need To Do Now

A practical guide to posting pay ranges, aligning titles and levels, and training managers so you stay compliant and hire faster.

Key takeaways

• Post clear base pay ranges where required and where you recruit most.

• Level jobs before you set numbers.

• Train managers on a simple, consistent pay message.

• Run a quick internal equity check before publishing ranges.

Pay Transparency for Small Businesses and Start-Ups

Table of contents

1. Why pay transparency matters now

2. What the rules usually require

3. Fast method to set ranges

4. Train Managers To Communicate Pay Transparently

5. Mistakes to avoid

6. FAQs

7. Turn Insights Into Action

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1) Why pay transparency matters now

Pay transparency, especially for small businesses and start-ups, improves trust and speeds up hiring by aligning expectations early. If you recruit in multiple locations, range posting rules may already apply to you. Pay transparency rules are state specific, so be sure to check individual state laws.

“Unbridled management discretion is the enemy of pay equity and transparency.” — Tom McMullen, Korn Ferry total rewards leader

2) What the rules usually require

• Post the base pay range in all external job ads, where required.

• Use the same pay range internally to support equity and prevent pay discrepancies.

• Keep documentation on how the pay ranges were determined.

• Note any specific location approach, if you vary your pay ranges by geography.

Pro tip:

Keep a one-page tracker with jurisdictions and locations where you hire, thresholds by employer size, and the effective dates.

3) Fast method to set ranges

• Choose the labor market that is most relevant for your business.

• Map each job to the appropriate job level, based on the scope of the role and required level of experience.

• For each job level, set the minimum of the range at 80-85% of the midpoint, and max at 115-120%.

• Place employees into the correct job grade, calculate compa-ratios, and plan any wage corrections over the course of 2 to 3 quarters, aligned with your fiscal cycle.

  
  

4) Train Managers To Communicate Pay Transparently

Managers are the front line of your pay transparency strategy. Equip them with plain-language scripts that explain salary ranges, your compensation philosophy, and how internal equity guides decisions.

Manager talking points checklist

• State that your company posts salary ranges to support fair and consistent pay

• Link pay to skills, role scope, performance, and internal equity

• Explain how growth works inside the pay range and what earns pay increases

• Invite questions and document the conversation

Core script example to use:

"We post salary ranges to support fair and consistent pay. Your pay is based on your skills, the scope of your role, your job performance, and internal equity. Here is how growth works within your range, and we can outline a path to increase your pay over time."

5) Mistakes to avoid

• Setting pay one offer at a time.

• Building ranges before leveling jobs.

• Using different data sources for similar roles.

• Skipping manager enablement.

  
  

6) FAQs

1) Do we have to post a salary range for remote roles?

If the job can be performed in a jurisdiction with pay transparency laws, assume range posting applies. The simplest, low-risk approach is to post ranges for all external roles and mirror them internally.

2) How wide should our salary range be and how do we pick the midpoint?

Anchor the midpoint to your target market aim for the job family. Set the minimum at about 80 to 85% of midpoint and the maximum at 115 to 120%. Keep ranges narrower for entry roles and wider for senior roles to allow growth.

3) What should we disclose besides base pay?

State the base pay range and briefly describe variable pay. For sales, include on-target earnings and how it’s split between base and incentive. List high-value benefits in one line so candidates see total rewards, not just base.

4) How often should we update ranges and run an internal equity audit?

Update market data and adjust ranges at least annually. Run a quick equity check before posting ranges, after merit reviews, and when you restructure titles or levels. Flag outliers and plan corrections over 2 to 3 quarters.

5) What if a candidate asks for the top of the range or above the range?

Use a consistent message. Example. “We post ranges to support fair and consistent pay. Placement in the range reflects skills, scope, performance, and internal equity. If the role’s scope is larger than posted, we’ll re-level and repost. Otherwise, here’s the path to progress within this range.”

7) Turn Insights Into Action

Ready for a compliant range strategy and manager toolkit you can deploy quickly?

Check out our list of services and book a free into call to discuss how The Avoir Company can help grow your small business.