Tag: General Resources

Within this General section, you’ll find a curated collection of posts that seamlessly combine the latest in employment trends with invaluable advice, giving you a well-rounded perspective on the ever-evolving world of accounting and finance.

Handling Burnout: Importance of Prioritizing Wellness in the Workplace

Most employees have experienced feelings of overexertion and exhaustion at some point in their professions. Employees are at increased risk of burnout when these symptoms are persistent. How common is burnout in today’s society?

Burnout can happen for many reasons, but the most typical causes include:

  • Failing to establish a work-life balance
  • Working with people
  • Working in high-stress environments

That being said, certain groups are more vulnerable to burnout than others. Burnout is a typical occupational danger for some professions and has intensified since the pandemic.

Who is Affected

Workplace burnout isn’t just a minor annoyance that employees must overcome. It is a problematic and affecting issue that can have many dire implications in different aspects of your life. For some professions, experiencing burnout early on in their careers is considered normal. Women, people with young children and those with lower income levels are all at risk of increased burnout. The most prominent rate of burnout was for individuals whose incomes falls within the $30,000 to $60,000 salary range, according to these 2022 statistics.

What are the Consequences?

Workers suffering from burnout can generate a slew of issues if ignored. At first, there is tardiness and low performance. As time passes, workers’ performance deteriorates, and they may potentially acquire health concerns. The Great Resignation is perhaps the most visible manifestation of the widespread impacts of burnout.

So, What Can Be Done?

Unfortunately, there is no quick solution for burnout, particularly the intense form that many people are suffering from right now. So what steps can professionals take to begin the remedy?

For starters, say no more frequently and create structure. That can look like avoiding checking work email or taking work phone calls during specific hours or on our days off. It is critical to establish boundaries. Secondly, it is important to prioritize self-care. Finding out what re-energizes us is essential for preventing and treating burning out. You can also implement more breaks in your schedule. Whether that’s through mini breaks throughout the day or taking a vacation, making time for a pause is a must. Lastly, seek support if you feel like your burnout symptoms become unbearable. Try talking to your manager to see what resources your company offers for counseling and mental health.

For more tips on improving employee well-being in the workplace, read on.

2022 Q2 Accounting and Finance Employment Report

The U.S. economy closed Q1 on a high note — adding a total of 431,000 jobs in March, according to the U.S. Bureau of Labor Statistics. The national unemployment rate also hit a post-pandemic low, coming in at a cool 3.6%.

The high amount of job openings, wage increases and significant decline in jobless claims all point to a sizzling labor market on the up and up, and a clear sign that COVID’s grip has loosened its hold in 2022.

“The economy has recovered more than 90 percent of the 22 million jobs lost at the peak of the pandemic’s lockdowns in the spring of 2020,” notes The New York Times. “… A far swifter rebound than forecasters initially expected.”

2022 q2 employment report-Source: U.S. Bureau of Labor Statistics

So, what does this mean for accounting and finance professionals and the people who hire them? We break it down in our 2022 Q2 employment report:

For Employers

Let’s just say it’s not the easiest landscape for companies right now. Job seekers are continuing to flex their upper hand in this candidate-driven market, with many leaving current roles for new opportunities at an alarming rate. Employers must remain attuned to the needs of top talent — both internal and prospective team members — and focus on offering flexible schedules, work-life balance and competitive salaries and benefits to candidates.

Below are some additional elements successful businesses must consider:

  • Retention as a hiring strategy. Starting from the inside-out is a great way for employers to evaluate the overall state of their company and fine-tune the areas that are lacking from an employee perspective. Creating a process for regular stay interviews, development opportunities and an engaging company culture are all key to keeping your people happy — and, in effect, attracting new team members.
  • Leveraging temporary workers. Candidate scarcity is a huge hurdle companies have struggled to overcome in the last several months. Still, the work must get done. Instead of pouring all your business’ resources into courting permanent or direct hire professionals, allot some of your budget to employing skilled consultants. These candidates are talented, credentialed and have experience tackling projects or interim engagements on day one.

For Job Seekers

Trends for experienced finance and accounting professionals remain on track with expectations from the start of 2022. Candidates have raised their standards for ideal career opportunities — seeking roles that offer flexibility, competitive pay and align with their personal values or beliefs. And while job seekers wield more of the power in this current hiring environment, it’s important to keep your skills sharp to stand out from your colleagues. Remember: they’re going after those jobs, too.

  • Brush up on your interview skills. Whether if it’s remote or in-person, your ability to adeptly convey your experience, talent and personality during the interview process is important to landing the job. Make sure you’re setting yourself up for success by optimizing your remote set-up, brushing up on key behavioral interview questions and more.
  • Achieve industry-specific certifications and degrees. Many upper-level accounting and finance positions prefer candidates to possess specific credentials, including CPA, CFA and CMA. Learn what type of credential makes the most sense for your career path.

Are you looking for a new job or have any hiring needs? Contact our team today.

Productivity Tips to Get More Done During the Holidays

Let’s face it – the holidays can pose a challenge to our work ethic. From juggling ever-growing shopping lists, seasonal networking and social events and hitting end-of-the-year goals, it’s easy to let battling priorities wreak havoc on those professional deadlines.

Don’t let it.

We’ve rounded up a few productivity tips to help you manage the holiday rush and re-focus on what you can control to get more done during the most wonderful time of the year.

1. Be Intentional

While the concept isn’t anything new, knowing how to use your time wisely is especially important when you have multiple priorities vying for its attention. Spend a few moments each day or week — if that suits your management style better — to planning out which items must get done in order of urgency. This allows you to keep your attention on the things that matter most, so even if you don’t get everything done on that to-do list, the most important tasks are being addressed.

Pro-tip: Most professionals know what times of day they work at their best. Be intentional with your productivity by tackling your most demanding items within that window.

2. Don’t Be Afraid to R.S.V.P. “No”

Setting boundaries is key to leading a healthy, functional life — and no other season proves this more than the holidays. Sure, it feels great to get a slate of party invites and have a full social calendar for the months of November and December, but that doesn’t mean you have to R.S.V.P. yes. The pressure of attending every festivity or event can slow you down, and leave you feeling mentally exhausted. Evaluate each event and make sure it aligns with what you’re looking to accomplish (whether that be fun with friends or networking with potential colleagues) and go from there.

Take Time for Yourself

Feeling guilty about taking that brief walk during your workday? You shouldn’t. Taking time for small breaks or even requesting time off to handle errands can help you regroup and get back to your professional responsibilities more effectively. Establishing a reward system for yourself — like coffee breaks, etc. — is also a great motivator for keeping you on track with your goals.

2021 Q4 Accounting and Finance Employment Report

The Big Picture

The U.S. economy may have lost some steam in September, but continues to steadily chug along with a total of 194,000 added jobs. This marks the ninth consecutive month of job growth as the country recovers from the COVID-19 pandemic.

Unemployment also fell to 4.8%, according to the U.S. Bureau of Labor Statistics — led by gains in leisure and hospitality, professional and business services, retail, transportation and warehousing industries. For college-degreed workers, the national unemployment rate declined to 2.5% in September.

2021 Q4 Accounting and Finance Employment Report

 

 

 

 

 

 

 

 

 

 

 

-Source: U.S. Bureau of Labor Statistics

One trend worth noting: the rise of resignations. A recent report by Reuters shows that U.S. quit rates surged to an all-time high in August. This sets the scene for a tightening labor market in Q4 and 2022 — one where there are more job openings than available candidates, and demand for a human-forward and flexible corporate culture.

For Employers

A talent shortage means a couple things for employers in Q4. For one, highlighting an empathetic and robust work environment is key. Yes, a market rate salary is still the No. 1 reason for choosing a new position, according to our 2021 Salary Guide, but the pandemic’s impact on job seekers’ priorities is clear. Creating a workplace that provides flexibility — whether that be remote and/or hybrid — as well as offers opportunities to connect are very important to today’s professionals.

Employers looking to fill open finance and accounting roles should also consider utilizing consultants to complete key projects and address overflow tasks. Contact our team to assist with your temporary or direct hire hiring needs.

For Job Seekers

As the job market tightens, skilled candidates are in high demand. Use this as an opportunity to find the best job match for you. Take informational interviews, partner with a recruiter and explore what accounting and finance positions are available in the market.

It’s also imperative to showcase your soft skills during the interview process. If the last couple of years have taught us anything, it’s that those indefinable attributes — adaptability, problem-solving and interpersonal — are crucial to building successful teams that can thrive in any environment.

Are you ready to make a career change? Check out the latest accounting and finance jobs in your area.

4 Soft Skills to Thrive in Any Work Environment

As companies seek to add more value to their operations, soft skills are becoming increasingly more crucial in the workplace. Having creative and critical thinking-employees is vital for support in introducing new concepts, services and goods. Employers prefer to hire people willing to work to the best of their abilities. See, it’s not necessary to be flawless. Instead, it is necessary to be reliable and professional.

To fulfill job responsibilities, professionals must have job-specific knowledge and expertise. But to successfully navigate any work environment, top achievers often have soft skills — those social and emotional quotients and traits that allow one to perform well in any situation. We share the top 4 soft skills you should develop to thrive in any work environment.

1. Problem-Solving

Employers want to see you solve problems and keep the company moving forward, such as discovering efficient strategies for work-related challenges. Some jobs require stronger problem-solving skills than others, depending on the level and complexity of the problem. Therefore, it is imperative to display that you possess these skills if you are currently searching for employment. Make it known that you have successfully identified an issue in your organization, developed a unique solution and used your selected technique to generate measurable goals and results. No matter what role you’re aiming for, demonstrating problem-solving skills is critical.

2. Adaptability

Every aspect of life is prone to change, and the job is no exception. Procedures are refined, goods are updated and technology is rapidly advancing. The most effective employees are those who can adjust to changing circumstances. Being adaptable at work implies responding quickly to changing concepts, duties, objectives and other workplace activities. It shows you’re willing to learn and try something new. Adaptability skills are also fundamental to reacting to changes constructively and proactively. Many people believe that adaptation is something that comes naturally to them. And while the idea is partially true, you can evolve to be more adaptive with time. A key leadership trait, companies continue to promote the importance of being open-minded and flexible as they grow and build their teams.

3. Interpersonal

The way you communicate and engage with others is referred to as interpersonal skills. Many occupations demand continuous social connection. Even jobs that appear to promote quiet individuals and independent work methods are subject to this rule. Interpersonal skills are not something that can be mastered from a book. Certain people are born with skills, while others must work hard to develop them. This is typically achieved by frequent interactions with others in the workplace. In fact, employers prefer to recruit candidates that have the necessary qualifications and will also fit into the company’s culture and contribute to its success.

4. Time-Management

Utilizing your time to work toward the results you value most will set you up for success and help you manage the sense of accomplishment that comes with achieving your goals. However, realizing that time management is something that everyone can achieve is just the beginning of learning how to cultivate it. A few key ways to make sure you are getting the most out of your entire day is to make sure you:

  • Align your priorities
  • Set achievable goals
  • Minimize distractions
  • Hold yourself accountable

This soft skill is essential because it allows you to plan your work and achieve your priorities, especially in a remote work environment. Effective time management skills can benefit both your career and your personal life.

For more career insights and tips, check out or blog!

2021 Q3 Accounting and Finance Employment Report

The Big Picture

And the good news keeps on coming. U.S. employers added 850,000 jobs in June — a feat the White House Council of Economic Advisers touted as the fastest monthly job growth since August 2020. Of those, 33,000 were temporary jobs, rising from the previous two months with a 1.83% penetration rate. Leading the way in industry gains include leisure and hospitality, professional and business services, retail and trade, transportation and utilities sectors.

The national unemployment rate, however, ticked up slightly from May to 5.9% last month, according to the U.S. Bureau of Labor Statistics. This number is still relatively steep compared to the pre-pandemic’s low of 3.5%, but falls well below the high unemployment rate from April 2020.

Q3 Accounting and Finance Employment ReportCredit: U.S. Bureau of Labor Statistics

“Job openings are still near historic highs, the rate of quitting is still above pre-pandemic levels and employers are laying off workers at record lows,” says Nick Burner, Director of Research at the Indeed Hiring Lab. “The outlook for hiring remains bright.”

We break down what employers and job seekers can expect in Q3:

For Employers

To say it’s a competitive job market is an understatement — specifically for securing in-demand professionals like accounting and finance talent. The unemployment rate for these individuals is much lower than the national average, with most accounting and finance positions falling below 5% and professionals with a Bachelor’s degree or higher at 3.5%.

In fact, job openings on a larger scale remain largely unfilled as there appears to be a disconnect between the type of roles candidates are seeking and the positions currently available. In a recent survey by ZipRecruiter, the pandemic not only shifted where workers moved in the market but how they want to work. Fifty-five percent of job seekers want remote work opportunities, and three in 10 workers don’t intend on returning to their old jobs, according to an April report by the Federal Reserve Bank of Dallas. The extended unemployment benefits and national relief checks have also allowed people to be more selective in their career decisions.

To attract and retain top talent, employers must:

  • Provide flexibility. Hybrid work environments are here to stay. In a CareerBuilder survey, 73% of professionals surveyed want flexible work options to stay — and many companies are listening. Sixty-six percent of employers are considering changing their office formats to support a hybrid workplace in an effort to meet these needs.
  • Pay salaries at market rate. As open positions get tougher to fill, employers are sweetening the deal by offering candidates at market and above compensation packages. This is happening across the board, as average hourly earnings for all employees continue to gradually increase over the past couple months. Download our 2021 Salary Guide to make sure you’re properly compensating your accounting and finance professionals in your area.

Q3 Accounting and Finance Employment Report

Credit: CareerBuilder

For Job Seekers

Skilled candidates are using this time to expand their job search and consider any and all opportunities that might be best for them. Ask yourself these key questions to evaluate your current career path, and make any pivots or adjustments necessary to get you in the accounting role or industry you desire.

To find the right opportunity, job seekers must:

  • Take informational interviews. Seeking out other professionals who are in positions, companies or industries you aspire to join is integral to your job search process. View these meetings as an opportunity to network, gain valuable insight and brush up on your interview skills. Many employers are incorporating virtual interviews into their hiring process, so make sure you are equipped to ace your next video job interview.
  • Partner with a seasoned recruiter. It’s difficult to always be attuned to how quickly the market is moving and the pros and cons of each new opportunity — that’s where partnering with a recruiter comes in. These professionals make it their job to know the latest in industry and hiring trends, helping to guide in-demand candidates on interview prep, negotiating appropriate salaries and ensuring the company’s culture and values align with theirs.

Contact our team for your job search or hiring needs today!

Two Career Check-in Questions You Need To Ask Yourself in a Post-pandemic World

The pandemic has altered the workplace. According to the Prudential Financial’s Pulse of the American Worker survey, one in four workers is considering quitting their job once the pandemic subsides. Of those, 72% say the pandemic caused them to rethink their skill sets. Now is a great time to reevaluate your career goals and aspirations. Here are two questions you need to ask yourself to conduct an effective post-pandemic career check-in and better plan for your future.

Question 1: What are some of the reasons you chose this career path in the first place, and how has that changed with recent events?

First, it’s important to ask yourself what the reasons are for taking your career route. And have any of those reasons changed with the onset of the pandemic? For example, if the path you’re on was chosen based on previous industry trends, are they still relevant today? And, better yet, how can you adapt?

According to the Bureau of Labor Statistics, the Accounting and Audit field is looking at an 11% job growth through 2026. In the current market, job openings outnumber job seekers in accounting and finance. This is great news for professionals seeking to make a career change. Once you are clear on the career path you want, think about how you can use current industry trends to plan for your future.

Question 2: Have any of your skills or interests shifted since the onset of the pandemic — what do you want to explore now?

What are you skilled in and what do you enjoy? Now is the time to take a deep dive and find clarity in what your career interests are. Pinpoint the intersection of industry needs and personal interests — this will help you identify what might be worth pursuing.

To put yourself ahead of the game, ask yourself: What incremental skills can I start to learn now to better prepare me for the next two to five years? For example, consider investing in yourself by getting your CPA or MBA. As the complexities of the world of business continue to grow, the demand for accounting and finance professionals with advanced credentials and experience is accelerating.

Read more about how to stay ahead of the curve by reading our 2021 Q2 Accounting and Finance Employment Report.

2021 Q2 Accounting and Finance Employment Report

The Big Picture

Both the S&P 500 and the Dow closed in early April at all-time highs. It was the market’s first reaction to the latest jobs report, which showed employers adding 916,000 jobs in March — the largest increase since August. The accelerating pace of hiring is leading forecasters to predict a strong economic recovery in Q2 and Q3 of 2021 that could run through 2022.

Other economic data released this month showed service sector making significant gains by surging to all-time highs in March, after months of COVID-19 driven shutdowns, stay-at-home orders and consumer caution. The Institute for Supply Management’s services index rose to 63.7 in March from 55.3 in February — far ahead of economists’ forecasts of a 59 reading. Anything above 50 points to expansion. These and other improving economic forecasts have led many analysts to raise estimates for companies’ Q1 earnings results.

2021 Accounting and Finance Employment Report Q2

 

 

 

 

 

 

 

Credit: ISM Report on Business

While lingering concerns about new variants of COVID and continued outbreaks persist, the faster than expected rollout of new vaccines (more than 3 million per day) and the encouraging news about continued declines in the number of new COVID cases have provided a counterweight.

GDP Forecast (3 month moving average)

2021 Accounting and Finance Employment Report Q2

 

 

 

 

 

 

 

 

Credit: ITR Economics

As have many economists we follow, the forecasters at ITR Economics maintained their outlook for ongoing economic recovery through 2021 and an extended rise in 2022 and 2023. ITR is projecting the following US Real GDP Q4-to-Q4 changes through 2023:

  • 2021: +1.3%
  • 2022: +2.5%
  • 2023: +2.0%

Employment for Accounting and Finance Professionals

The economy added jobs faster than expected in March, leading to forecasts of rapid employment growth in the coming months as vaccinations increase and jobs across industries return.

Additionally, January and February had big revisions as reports were updated for January to 233,000 jobs from the 166,000 as previously reported, and February’s job growth was revised to 468,000 from the 379,000 reported. It’s clear the reopening of the economy is happening faster than most expected. Overall, the U.S. economy remained about 8.4 million jobs short of its February 2020 levels as of March 2021.

Professional and Business Services added 66,000 jobs in March 2021

2021 Accounting and Finance Employment Report Q2

 

 

 

 

 

 

 

 

Growth in service sector was the single biggest contributor to monthly job gains. Leisure and hospitality along with education made big gains in recovering lost jobs in March, reflecting easing social distancing restrictions and increased capacity limits at bars, restaurants and other establishments. Leisure and hospitality payrolls rose by 280,000 in March after an upward revision of 384,000 in February. These industries represent the hardest-hit industry category tracked by the U.S. Bureau of Labor Statistics.

Within the private service sector, education and health services positions rose by 101,000 to nearly double their February gain and professional and business service jobs posted a third consecutive monthly increase, with jobs increasing by 66,000.

National Unemployment Rate: 6%

2021 Accounting and Finance Employment Report Q2

 

 

 

 

 

 

 

 

 

 

Credit: U.S. Bureau of Labor Statistics

The unemployment rate dropped to 6% in March 2021. This is a dramatic decrease from April 2020 and is 2.5 percentage points higher than the 50-year low 3.5% unemployment rate we saw just prior to the pandemic in February 2020. The Federal Open Market Committee suggests that unemployment will return to those 50-year lows of 3.5% by the end of 2023.

The rate of unemployment for professionals with a Bachelor’s degree or higher is an important marker since most Accounting and Finance professionals fall into this category. In March 2021, the unemployment rate continued the downward trend, falling to 3.7%. This is significantly lower than the 4-6% rate of unemployment that many economists believe constitutes full employment, and explains the difficulty employers are having recruiting these professionals.

Century Group’s Forecast

For Employers

  • New Realities: Competition for top accounting and financial talent is fierce. Employers need to expect a tight talent market for the foreseeable future and adjust their hiring criteria. According to the Bureau of Labor Statistics, the outlook for job growth in the Accounting and Audit field is 11% growth through 2026. In the current market, job openings outnumber job seekers in accounting and finance. Consider narrowing your requirements to the most critical.
  • Rising Compensation: Expect competition and compensation for accounting and finance professionals to increase as demand for these professionals increases, the baby boomer generation retires, labor force participation shrinks and fewer accounting and finance degrees are conferred.
  • Get Flexible: CPA firms have been at the forefront of flexible work arrangements and work/life balance. Traditionally known for long hours, weekends and extensive travel, many have transformed their cultures to offer flexible arrangements as a means of attracting and retaining critical accounting and audit professionals.
  • Think Remote: Recent surveys have shown that up to 34% of professionals indicate they won’t return to work in an office if their company requires it. Accounting is a profession that lends itself to successful remote work. A recent McKinsey study, “What’s Next for Remote Work,” analyzed 800 jobs and 2,000 tasks and concluded that Finance, Professional Services and Information sectors have the highest potential for remote work.
  • Streamlined Hiring: When you find someone that meets your criteria, don’t wait. In the current professional labor market, speed is critical in making hiring decisions. Top candidates generally receive multiple offers and perceive long hiring processes as outdated.
  • Flexible Staffing: Many employers utilize temporary and interim professionals to manage skill gaps on their own teams, complete key projects and handle peak periods (month-end, annual audits, M&A integrations, etc.). Others utilize interim consultants to keep their day-to-day operations going while they conduct a search for a full-time employee.

Have a hiring need? Contact our team today for temporary or direct hire roles.

For Job Seekers

  • Know Your Value: Before you launch your job search, you should have a clear picture of your market value. Accounting jobs are one of the fastest growing occupations, with the BLS forecasting a 4% growth in demand from 2019-2019. In that period, an estimated 61,700 jobs should open up. There are many resources available to help you determine your value, including Century Group’s 2021 Salary Guide for Accounting and Finance Professions.
  • Get Your CPA or MBA: The world of business is getting more (not less) complex and the demand for accounting and finance professionals with advance credentials and experience is accelerating. Individuals that earn these designations place themselves at the forefront of the profession and are in high demand.
  • Expand Your Network: Don’t limit yourself to easily found opportunities. Consider joining a professional association to expand your professional network. And take a call from an Executive Recruiter. Recruiters build networks and can provide you access to leading companies and opportunities that you may never learn of on your own.
  • Take a Gig: Join the “gig” economy by taking on a temporary or interim assignment to gain entry to a new industry, increase your market value, develop new skills or gain more experience.

Submit your resume to be considered for one of our latest accounting and finance jobs in your area!

2021 Q1 Accounting and Finance Employment Report

The theme for the start of 2021: cautious optimism.

As we turn the page on an unprecedented year, experts are looking to key indicators — including gross domestic product and the national unemployment rate — to make predictions of how quickly the labor market will continue to rebound from the impacts of the pandemic.

December’s national unemployment rate remained unchanged at 6.7%, according the U.S. Bureau of Labor Statistics, with job gains in professional and business services, retail trade and construction. But for professionals in the financial activities sector, the unemployment rate is much lower — hovering at 3.1%.

– U.S. Burea of Labor Statistics

Looking ahead to the rest of 2021, ITR’s Trends Report points to the gradual rise in the U.S. Industrial Production and U.S. Total Retail Sales as healthy signs of economic recovery. And on a larger scale, PwC Global projects the global economy to expand 5% — touting it as “the fastest recorded in the 21st century.”

We forecast what this means for employers and job seekers in Q1.

For Employers

After experiencing a brief holiday lull toward the end of December, staffing employment has bounced back up 2.8%. In fact, staffing jobs for Jan. 11-17 were nearly 1% higher than they were the same week last year, according to American Staffing Association.

This positive trend falls in line with Monster’s Future of Work 2021 Global Outlook Special Report, which found that “82 percent of the respondents plan to hire in the New Year, and 93% feel confident they will find the right candidates.”

Put plainly: all signs indicate companies plan to do a lot of hiring this year — and are already well on their way.

To remain competitive, employers must prepare to offer accounting and finance professionals a salary at market rate, as well as showcase an attractive benefits packages and strong company culture. Top hiring trends for 2021 also illustrate a focus on remote work capabilities and flexibility as key to engaging skilled workers.

For Job Seekers

If there was any unease for job seekers in 2020, it seems that trepidation has vanished with the change of the calendar year.

Eighty percent of candidates — passive and active in their search — see themselves working at a new company within the next 12 months, according to the 2020 Candidate Sentiment Study by American Staffing Association and ClearlyRated.

Whether it’s because of or is in spite of the pandemic, a rallying optimism around future employment opportunities is evident. And job seekers need to be prepared for a crowded candidate pool as they begin to apply for new roles. Having remote work accessibility and strong soft skills are crucial to helping you stand out from your peers.

Contact our team today for your job search or hiring needs!

Everything You Need To Know About Colorado’s Equal Pay for Equal Work Act

As we prepare to usher in 2021, Colorado employers should add the state’s “Equal Pay for Equal Work Act” to its list of things to consider.

Effective Jan. 1, the new law protects against pay discrimination on the basis of sex (or sex in combination with another protected status). It also forbids an employer from seeking the salary history of employees — preventing them from using that information to determine a wage rate for a position — and requires an employer to disclose certain compensation and promotion information.

Century Group General Counsel, Fawn Wright, breaks down the Equal Pay for Equal Work Act and highlights several areas for both clients and candidates to keep in mind.

Key Takeaways

  • Any employer (public or private) who employ at least one employee in Colorado must comply.
  • Employers are prohibited from discriminating on the basis of sex (or sex in combination with another protected status) by paying employees of different sexes different amounts for substantially similar work, regardless of job title, based on skill, effort and responsibility.
    • Other protected statuses in the workplace include race, creed, color, ancestry, disability, sex, religion, familial status, marital status, sexual orientation, age, citizenship status, genetic information and national origin.
  • Wage differentials may be permitted based on:
    • A seniority system;
    • A merit system;
    • A system that measures earnings by quantity or quality of production;
    • The geographic location where the work is performed;
    • Education, training or experience reasonably related to the work; or
    • Travel, if travel is a regular and necessary condition to the work.
  • Employers must not seek salary history from a prospective employee, retaliate against a prospective employee who does not provide salary history, rely on salary history to determine the prospective employee’s wage, or prohibit employees from comparing or otherwise discussing their respective wage rates.
  • For all job openings that could be performed by a Colorado candidate or employee (including promotions), employers must provide the pay range of the position and a general description of any bonuses, commissions, or other compensation, as well as of any employment benefits.
  • With limited exceptions, employers must announce all promotional opportunities to all current employees (except those entirely outside of Colorado) on the same calendar day and prior to making any decisions on the promotion.
  • Employers must preserve records of each employee’s job description and wage rate history through their tenure at the company — plus an additional two years.

Best Practices

  • Review your hiring practices to avoid asking salary history questions.
  • When discussing salary with a candidate, develop a script clearly explaining that you are not asking for their salary history or what her or she is currently making, but are simply asking for their expectations.
  • If the candidate — without any prompting — voluntarily discloses his or her salary, be sure to document in writing the circumstances of the disclosure.
  • If the candidate discloses his or her salary information and it benefits them, you should also document in writing you received authorization from the candidate to disclose this information to the employer.

Are you a client or candidate seeking assistance with your search? Contact us today.