Implementing new transparency law will provide greater clarity about pay at Stanford

As of Jan. 1, 2023, California joins a growing list of states and jurisdictions that requires improved pay transparency. With the legislation signed by California Gov. Gavin Newsom at the end of September:

• Employers with more than 15 employees must include a pay range on every job posting. Current employees are also entitled to request and receive the pay range for their current position. 
• Employers with more than 100 employees must report additional pay data to the California Civil Rights Department.

At Stanford, this law applies to any job posting or any individual who is on Stanford’s payroll, including faculty, staff, postdocs, contingent employees, and student employees. 

Being upfront about pay with candidates

While Stanford internally publishes some pay information, such as the Staff Salary Structure for non-academic staff, only the pay grade, and not a specific pay range, has previously been included in public-facing job postings. That isn’t enough to comply with the new law; now we will provide both the grade and the pay range the hiring manager expects to pay for the specific job in the posting, explains Michelle Jaross, Stanford’s associate vice president for compensation, benefits, and global HR. 

“Within our pay structure, staff jobs are assigned a grade level (A-P) based on the scope, complexity, impact, knowledge, and experience needed to perform the job.   These broad grade-level ranges include the pay ranges developed for each job at that grade level," she explains. "Specific pay ranges for each job are compiled by staff compensation and updated regularly, based on market survey data. Going forward, providing both job grade and the expected pay range for the specific job will help prospective employees decide whether they want to apply for an opening.” 

Along with the great benefits Stanford offers, she says, pay will always be an important part of the decision to come here, and to stay.

How this law benefits you, too

Ensuring current employees feel confident about their pay is another goal of the legislation, Michelle adds. Starting in May 2023, the university and other employers will provide more detailed annual pay information to the state, sorted by job and demographic information.

At Stanford, individual salary placement within a range can vary based on the market benchmark pay for the specific job, the individual’s relevant experience, credentials, and  performance, the relative scope of the specific job, the relationship to salaries of other employees with similar skills, credentials and experience in the same job, the geographic location of the employee, and budget, among other things. But even with those variables, Michelle says, pay administration should be consistent for each job classification regardless of the school or unit.

What happens next

Before winter closure, guidance was sent to HR Managers as well as to those who post jobs to the Stanford Careers site—or elsewhere on behalf of Stanford—to clarify what information must be included. 

If you are a hiring manager, your school or unit HR can help advise on the appropriate pay range for your job requisition. Jobs posted prior to Jan. 1, 2023, are not required to include a pay range; however, any new postings or existing postings updated or revised after Jan. 1 will need to include it. You should also review open positions and remove any posted prior to Jan. 1 that aren’t in active recruitment. 

If you have questions about your current pay, reach out to your manager and your school or unit HR.