Since January 2021, when the Equal Pay for Equal Work Act went into effect, a hot debate went viral regarding the level of transparency required for a healthy candidate to potential employer relationship. Because the first interactions are indicative of the future, and that starts with employers providing salary ranges on their job postings. Candidates want a fair platform to negotiate salary from. Employers are looking for cost efficiency wherever they can find it – which is understandable. But is saving a few thousand in a salary range, to the expense of a more effective candidate, worth it? At The Hire, we don’t think so.
That said, employers often see salary as a taboo topic. But it’s important to remember that the right salary for your position can be based on many factors. Putting a range of salaries on your job description not only allows you to attract the best candidates but also sets up expectations and ensures transparency. Three reasons why employers should post a salary range are to…
Attract diverse talent
Set realistic expectations
Ensures transparency
Attracting Diverse Talent
The CEO of one company was quoted in Forbes as saying, “I don’t want to be the next Silicon Valley. I want to be the next Detroit.” While this may seem like an odd statement, there is a method to his madness. The CEO wants his company to produce diversified talent. Talent that can help it grow and stay competitive in changing markets. Posting salary ranges will contribute to this. Because candidates need to know what they are getting into before applying to an organization. So, the only thing a company limits by not including salaries is the pool of talent willing to take a chance on your posting.
Setting Realistic Expectations
Salary posting is a great way to set realistic expectations for both the employer and potential employee, as it is important to be upfront about what you are willing to pay. It is also vital employees know their worth and employers their market rate. We know some companies do not post salaries online because they fear competition from other companies who may pay more than them, but this is not true because there are plenty of low-paying jobs. Frankly, candidates often see the lack of a published salary as a means for the company will lowball the salary offer (and likely cut corners ongoing when it comes to employees’ needs). That is not how to start a potential working relationship.
Ensuring Transparency
The salary transparency movement has grown over time. It now has many supporters, including politicians like Bernie Sanders and Alexandria Ocasio-Cortez who have both proposed laws. Putting salaries on job postings is one way to catch the wave. How can it help? Let’s start with Gender Equality.
A study performed by Glassdoor found that, on average, women are paid less than men for equal work. The same study found that when this information was publicized employers were more likely to rectify the inequity. That is why transparency can be a tool to help solve problems such as these. It encourages companies to make changes proactively rather than waiting until they are required to do so. And again, without transparency, you are limiting your candidate pool from the start. Because experienced applicants will likely see it as an indicator of future behavior.
So, while recruiters often don’t include salary because they have a variety of levels of positions in the same industry – when an organization skips salary on that single posting its simply poor form. The reality is it makes candidates less likely to apply. So, in this market, if you are willing to risk a great employee to save a few dollars, by all means, keep the salary range off the job listing. But if you are looking to be competitive in obtaining top talent, bite the bullet and put it out there!