No one buys a car without doing research on the model, without asking the dealership about gas mileage, or without understanding what features are included in the purchase. The investment is contingent on this information because people want to make informed decisions, especially when they are big ones.
At a busy restaurant, we go to the host, hungrily make an inquiry on table wait-times, and then they usually respond with an approximation rounded to the nearest 15 minutes. At the very least, they give us a broad range – you seldom see a restaurant flat out tell you that the wait time is unavailable.
And yet, in the labour market, seeing “pay range unavailable” on a job posting is the norm.
To this point, a report from PayScale reveals that only 22 per cent of U.S. and Canadian employers disclose salary or salary ranges on job ads. But the fact is that more than two thirds of the candidate pool prioritize money in their job search and want salary information in the first touchpoint from recruiters.
As an employer, if you have an informal or incomplete compensation framework, then any flaws that are present will only compound over time. If you’re willing to pay at market to hire someone you really like but aren’t matching those numbers with the roles you have internally, it will create pay gaps and divisions in your team. It’s common for internal equity to be a little off-balance, but you should take the necessary time and steps to restructure your pay philosophy in a way that reflects the progress and growth of both the business and the employees.
Honesty and candidate quality are inextricably connected
Candidates aren’t prioritizing pay in their job searches just because they are greedy and self-serving. Yes, we all want shiny toys, but life is expensive, and people want to be paid what they are worth.
Beyond the financial particulars, people also want to feel respected. Respected for the money and effort they put into their education, for their career experience, for the relationships and bonds they worked so hard to build. Posting pay on your jobs says to them that you understand their time is as valuable as yours, that you aren’t trying to give them a run around in attempts to pay as little as you can for their talent.
We understand that being fully transparent with salary ranges through the hiring process could potentially lead to internal struggles with existing employees. The market is driven by candidates and as a result you may be hiring people at a higher salary than someone on your team who’s been there a few years. If you’ve made the decision to start posting your salary ranges, be up front with everyone on the team before the posting goes live.
3 Reasons Why You Should Show Candidates Salary Ranges in Job Postings:
1. Break the status quo.
For candidates, finding job postings with pay ranges is typically a tough ordeal unless the institution is legally obligated to disclose that info (think government).
As a business, making the conscious decision to post pay on your own terms immediately sets you apart from the crowd of companies competing with you for top talent. Obviously, advertising a salary is not a sure-fire win, but it speaks to your convictions and level of confidence in the company’s mission and that matters to applicants. Even if a candidate does pass over a job posting because of the salary range, you are not only saving them time, but also your own and your hiring managers’. You forego negotiating with and potentially losing a less suitable candidate because they had exceedingly lofty expectations for pay.
2. Transparency build trust.
If you are a startup, a scaleup, or an SME, the reality is you might not be readily equipped to pay competitive salaries for your industry, but if you are forthcoming and honest about what you can offer, you are going to be filtering out candidates who are only chasing dollar signs. What you’re left with are people that have a genuine belief in your product, mission and vision that want to invest in your progress and grow alongside you.
That doesn’t necessarily mean that the best or most experienced talent is going to discard your job postings. Many mid-late career professionals going on 10-15 years with massive companies are simply looking for a change of pace, some freedom, and a chance to build something of their own. That’s where startups shine. Keep in mind, someone just starting out in their career can learn a lot more working for a startup and might be willing to sacrifice some financial benefits for something that is more valuable including training, personal development budgets, work from home options and more.
3. Competition is fierce.
@pivotandedge we all know later means never🥲 get that timeline in writing! cr: @Ace Anderson #salarynegotiaton101 #joboffer #workfromhome #howtogetthejob #securethebag ♬ Your Résumé Looks Great – Ace Anderson
We’ve already established that the majority of jobseekers immediately look for a salary or salary ranges on job postings. Not including these details may push candidates into the open arms of big business or worse – your competitors.
If your concern is that you want to make sure the candidate is the right person for the role, that is completely valid. But consider the fact that your top candidate will have competing interest for their services and could very easily be swept away by an alternative offer lower than what you were prepared to pay just because they had visibility on it. There are a lot of unknowns in the hiring process, but if there is anything the recruiting industry has learned throughout The Great Resignation and The Great Reshuffle it is that we are in a candidate-driven employment market and they move quickly.
Posting pay is only one step of the journey
Remember, posting salaries in job descriptions is not a silver bullet that will eradicate all your hiring woes. It is merely a single step towards establishing trust with candidates who read your job postings, careers pages and social media profiles.
The rest of the work is going to come down to your ability to listen to the people you work for, understanding what your employer brand is and using that to promote your employee value proposition to the world. That is something we can help with at Pivot + Edge, so if you ever need a hand finding ways to attract good employees to your ranks, give us a shout.
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