At the onset of this year, the states of California, Rhode Island, and Washington aligned with the growing trend of implementing salary transparency laws. The primary objective of these laws is to provide workers with increased leverage in negotiating their earnings and to address wage disparities by promoting greater transparency.
Over the past years, a series of laws have been enacted to safeguard job-seekers during the hiring process, including measures that prohibit employers from inquiring about salary history. Such inquiries have the potential to perpetuate wage inequities by hindering underpaid workers from achieving fair compensation.
In 2021, Colorado pioneered a novel approach by implementing a law that mandates employers to proactively and openly disclose salary ranges in job advertisements for positions that can be performed within the state. This legislative action set a precedent for promoting transparency and fairness in the employment market.
This emerging trend is gaining traction worldwide, for all the right reasons. If you are curious about the rationale behind it, here are a few reasons why you should also incorporate salary ranges in your job postings:
It’s a top priority for job seekers
When evaluating a job advertisement, the foremost aspects that candidates typically prioritise are compensation and benefits. These factors serve as significant motivators and should not be disregarded lightly. In fact, LinkedIn has reported that 70% of professionals expect to receive salary information in the initial message from a recruiter.
Therefore, bypassing intermediaries and including salary details directly in the job posting is highly recommended. This approach not only saves time but also provides essential information to prospective candidates who may be genuinely interested. Recent research even indicates that the presence of a salary range in a job posting influences the decision to apply for 91% of candidates, underscoring its immense motivational impact.
Job seekers utilise the salary details provided in a job description to assess whether the offered compensation aligns with their expectations. By including the salary range in your job description, prospective applicants can evaluate their compatibility with your company even before applying. This approach filters out unsatisfied candidates, reducing the volume of applications that your HR team needs to handle.
Only contented applicants who find the salary offer suitable are likely to submit their applications, streamlining the hiring process for your team. Consequently, including salary ranges saves significant time for your HR team by ensuring that they focus on candidates who are comfortable with the offered wages.
Candidates will seek the information anyway
Whether it's the initial inquiry or their independent investigation on platforms like Glassdoor or Salary.com, candidates have a strong desire to ascertain the expected salary range. Moreover, a significant amount of salary information is readily available. Concealing compensation details from candidates only serves as a smokescreen because ultimately, every prospective employee must be presented with an offer.
Embrace upfront honesty and foster transparency. It's important to remember that while salary holds significance, it may not always be the sole determining factor. In fact, numerous job seekers are willing to accept a lower salary in exchange for flexible working conditions or a more inclusive work environment.
Attract the right talent with the right salary
To attract the best-suited candidates for a position, employers must possess a clear understanding of the appropriate salary range and align it with their compensation offers. By incorporating salary offers that correspond to an applicant's skills and experience in job postings, employers present their organisation in a positive light. Furthermore, when the job description includes an accurate salary range, it helps attract highly qualified candidates for the specific role.
Fosters a culture of diversity, equity, and inclusion
The significance of transparency in all aspects of a company's policies, conduct, and performance is growing in importance across businesses. Whether it pertains to environmental impact, employee treatment, diversity, or other factors, the traditional corporate veil is rapidly being lifted. One effective way to demonstrate your organisation's commitment to equality and fairness is by disclosing salary ranges.
This powerful action showcases your company's aversion to fostering an atmosphere of secrecy and mystique. According to job postings expert Katrina Kibben, pay transparency serves as a "trust builder," whereas keeping salaries concealed can create emotional liabilities. Furthermore, Harvard Business Review (HBR) has highlighted that pay transparency within a company can help mitigate the gender pay gap, foster a more engaged workforce, and cultivate trust.
Rising above the competition
While the inclusion of a salary range in job postings is gradually gaining traction, several compamies companies still refrain from doing so. However, top-tier candidates tend to be highly selective when choosing which positions to pursue. Therefore, why not seize the opportunity to capture their interest? By being transparent and forthcoming about the compensation associated with a job, you can gain a competitive advantage in a saturated market.
It is important to acknowledge that the counterargument exists - a salary range that is too low may deter potential candidates. Nevertheless, isn't it preferable to address this issue from the outset rather than wasting the time of both applicants and recruiters/ managers. Failing to provide this crucial information can adversely affect the candidate experience and lead to complications down the line.
Stay tuned to People Matters for more information on job postings.