As seen on local news stations such as FOX 9 News, Jenna Estlick, President of Human Resources Solutions at Versique Executive, Professional, and Interim Recruiting, shared insights on how Minnesota’s salary transparency law, which took effect in January 2025, has impacted employees and employers in its first 90 days.
The Impact of Salary Transparency: Three Months In
We are now three months into Minnesota’s new salary transparency law, and its effects are becoming clearer across industries. The law, which requires employers with 30 or more employees to include salary ranges in all job postings, aims to promote pay equity and transparency in the workplace. While this shift brings positive strides toward fairness, it also presents challenges for both employers and job seekers as they navigate this new hiring landscape.
We have been closely monitoring these changes and have identified three key trends emerging from the law’s implementation: increasing candidate expectations, overwhelming application volume, and heightened internal equity discussions.
Rising Candidate Expectations
One of the biggest changes we’ve seen is the way job seekers interpret salary ranges. Candidates often expect they qualify for the highest end of the posted range, even when their skills or experience may not fully align with that level of compensation. This is creating tension in salary negotiations, with employers needing to balance external expectations while maintaining internal consistency.
As a result, companies are increasingly seeking data-driven insights to validate their compensation strategies. Clients are seeking compensation analysis and market data to ensure their salary bands are competitive, equitable, and justifiable in a market where transparency is now the standard.
Surge in Job Applications
Public salary ranges have led to a significant increase in job applications, particularly for remote positions. While more interest is a positive sign for employers, HR teams are feeling the strain of reviewing and managing an unexpected flood of applicants. This influx makes it more challenging to quickly identify top talent.
To address this, many organizations are refining their screening processes, incorporating AI-driven applicant tracking systems, and crafting job postings with more precise qualifications to streamline recruitment efforts.
Internal Pay Equity & Employee Retention
The salary transparency law is not just affecting new hires—it’s also reshaping internal conversations about pay equity. Existing employees are now more aware of salary disparities and are raising questions about why new hires or colleagues at the same level may be earning different salaries.
While salary differences can often be explained by experience, tenure, or performance, employers are seeing an increase in discussions around pay equity and fairness. Leaders must be prepared to have these conversations and ensure they have clear, data-backed rationales for their compensation decisions.
How Employers Can Adapt
To successfully navigate this transition, businesses should take proactive steps to align their hiring and compensation strategies with the new transparency requirements:
- Leverage Data-Driven Salary Ranges – Simply listing a range is not enough. Employers need to ensure salary bands are based on market research, industry benchmarks, and internal pay structures.
- Communicate Clearly – Job postings and internal policies should outline the factors that influence compensation decisions, such as experience, skills, and performance.
- Evaluate and Update Retention Strategies – Pay transparency extends beyond hiring. It’s essential for companies to assess their internal compensation structures, ensure fair pay practices, and create a culture of open and proactive communication.
While the adjustment to salary transparency comes with its challenges, it also presents an opportunity for organizations to build greater trust with employees, refine their compensation strategies, and create a more equitable workplace. Change is never easy, but companies that embrace transparency and agility will be better positioned for long-term success.
