Why The Same Job Title Doesn’t Always Mean the Same

My colleague Matthew Gardner, Ambition’s UK Managing Director, recently published an article in PSMG that examines the increased transparency around salaries in the professional services world. Titled “The Same Job Title Doesn’t Always Mean the Same Salary – It's Time for Transparency."

Matthew’s article explains how salary transparency has come about and, most importantly, lays out the benefits to employers and job seekers alike. You can read the full article here.

Let me summarize a few of Matthew’s key points and offer in a U.S. perspective – what we’re seeing as salary transparency becomes an increasingly important factor in the U.S. legal market, particularly in New York City, the biggest legal job market in the country.

Benefits to employers

As Matthew notes, law firms have traditionally relied on salary benchmark data for large research providers. The problem is, in a rapidly changing environment – and, especially in the U.S., one still evolving after the dramatic changes caused by COVID-19 – that salary data can get out of date very quickly. And in a world in which we have grown accustomed to immediate, accurate information at our fingertips (in the form of our phones), that’s just not good enough.

So legislatively mandated salary transparency in New York City, along with New York State, California and other key states and individual cities, can make it much easier for firms to determine salary ranges based on what the market – that is, competitors – are paying for those particular roles.

The problem is, not all employers see these benefits. We have seen too many cases where firms have been very creative in keeping their pay ranges ambiguous. To these employers, salary transparency could upend the apple cart, so to speak, as legal marketing, BD and communications professionals will now see what colleagues at their firms and at others are earning and will long for a bigger slice of the compensation pie.

The problem with this thinking is that it can actually hurt both recruitment and retention. The lack of salary transparency can make recruitment very complicated and can draw out the process, and we have certainly seen many examples of frustrated job seekers turning away from good career opportunities because of a bait-and-switch. This in turn can damage a firm’s reputation in the market – not a good thing when the legal market competition for talent is very stiff and firm reputation matters.

Simply put, if you want serious candidates to apply for your posted jobs, then you need to be transparent about salaries. Studies show that people are more inclined to apply for a job when they know the salary upfront. It also saves time for everyone involved by avoiding entering processes that are not suitable.

As for retention, law firms need to be thinking about retention – along with promotion – every day, and not only when job opportunities are posted and transparent.

Today’s marketing, BD and communications professionals are very sophisticated and very knowledgeable about new opportunities, but they will also remain in their current roles as long as they are respected, nurtured and fairly compensated and see a clear path to advancement in responsibilities and salary growth.

Matthew is 100% on point when he emphasizes that employers need to let go of their fears around pay transparency. The fact is, the job market is small, salary data is widely available, and current employees are always focused on staying at or above market when it comes to compensation. Raising an artificial veil of secrecy around compensation is unnecessary and counterproductive.

Benefits to job seekers

Matthew’s central point is that the same job title doesn’t always mean the same salary. For job seekers, that’s a great rule of thumb to keep in mind when beginning to actively look or being passively open to the next opportunity.

Matthew notes that salaries vary between firms.

For example, a BD Manager for a U.S.-headquartered firm may earn $20K-$40K more than their counterpart at an international firm with a U.S. presence.

In a case like this, other factors – including the opportunity to work on cross-border projects or to have advancement opportunities abroad – could be as motivating as pay and should be considered as part of a holistic job search process.

Job seekers need to be realistic when considering new opportunities.

Here’s a place where recruiters can really help. While everyone would like to be paid at the top end of a salary band, that’s not a given and not necessarily the most important factor. Specific job responsibilities, firm culture, mentoring, growth opportunities and numerous other factors should also be part of the decision-making process.

Final thoughts

Salary transparency is here to stay in the U.S., and it is most likely going to continue to grow to new cities and geographic markets. There are, of course, challenges and opportunities for both employers and job seekers in this new legal job market. Now is the time to become serious about salary transparency.

Find out how your salary compares in the current market by taking a look at our latest salary guides for Legal Marketing, BD & Communications.