The subject of whether or not to divulge salaries in job postings is often a point of contention. Some believe that it can weaken negotiations or give competitors too much information. It is also believed that it can lead to current employee jealousy when salary ranges are published. Others argue that the pro’s outweigh the con’s…
1) It’s one of the first things job seekers look for
Publishing salary information makes it clear what’s in the offer, and if the offer is attractive enough, it will give those top candidates a reason to apply to your job posting. According to SHRM, when researching available jobs, salary and benefits are the primary things that most candidates look for. It’s a motivating factor and one that shouldn’t be ignored. According to LinkedIn, 70% of professionals want to hear about salary in their first message from a recruiter. Indeed states that their data shows that potential candidates prefer listings with this detail.
2) Candidates will try to find out anyway
Whether it’s the first thing they ask or if they do their own sleuthing on sites such as salary.com or Glassdoor, candidates want to know what kind of salary to expect and they don’t want to waste their time to applying to jobs that don’t meet their expectations. Concealing compensation can be seen as a red flag whereas being up-front shows transparency.
3) Diversity, equity, and inclusion
Transparency is becoming of increasingly important for any business. One way to ensure that your organization is on a committed path to equality and fairness is to disclose salary ranges. It’s a very powerful tool that demonstrates how your company isn’t interested in playing games. By not publishing the salary, trust in the company may be diminished.
4) It is becoming more standardized
Tradition is of the greatest obstacles to including a salary scale on job postings. When it comes to job postings, companies often have a set way of operating which have not evolved over the changing times.
5) Millennials prefer it
In Jennifer Deal’s hugely successful book ‘What Millennials Want From Work’, she found that:
“Millennials are most likely to discuss their compensation with their parents (71%) or their friends (47%). In comparison, older staff are substantially less likely to discuss their compensation with co-workers (19%), friends (24%) or parents (31%).”
Directness about money is an inherent need among this generation. Millennials will make up 75% of the workforce by 2025, and it is therefore worth thinking about this in terms of how to attract them. If salary ranges appeal to this generation, then it makes sense to include this information when reaching out to them.
6) Candidates don’t change jobs for a lateral move
The 2020 Compensation Best Practices Report by Payscale, explains that one of the foremost reasons why employees leave companies is for a higher salary. It’s important to understand that salary history does not give you a guide as to how much a candidate is worth. Perhaps their most recent salary is $35,000 and they have had no increases for several years. Does that mean that the candidate is be willing to accept a salary of $36,000 with your company? Probably not. Providing details about what a position is worth will encourage applications from strong, dedicated candidates willing to work at the salary you are offering.
7) Standing out from your competitors
As of 2022, 50% of US companies still don’t post salaries. The top candidates are usually quite discerning about which jobs they apply for, so it’s important to do what you can to appeal to them. Being forthright about a position, including what the salary is, can give you a competitive advantage during this candidate shortage. Conversely, publishing a salary range that is too low could turn away candidates. But isn’t this better for them to know the salary right away and not waste their time, or yours?