Many job seekers are hesitant to apply for jobs because they don’t know the salary range. This can lead to them underselling themselves or, even worse, accepting a position that doesn’t pay enough.
On the other hand, companies often hold back on disclosing salaries because they’re worried about attracting too many candidates or having to pay more than they budgeted for.
Disclosing salaries when recruiting can help solve both of these problems. Being transparent about pay can attract better candidates and reduce pay discrepancies between genders.
What is salary disclosure?
Salary disclosure is the process of revealing salaries for job postings and recruitment to promote fairness and close pay equity gaps. Even without a law requiring companies to disclose compensation in job postings, many companies choose to do so voluntarily to remain competitive in the recruitment process.
What are the benefits of disclosing salaries when recruiting?
The purpose of increased transparency when recruiting is to allow for better communication with candidates, giving them a more comprehensive understanding of the company and its culture and enabling a better selection process by providing all details about the job and company.
More attractive to potential candidates
The disclosure of salaries during recruiting can give potential candidates greater trust in the company, allowing them to apply for a position more confidently. Additionally, it provides applicants with the information they need to negotiate their salary effectively, enabling them to receive fair pay for their work.
It also helps attract more diverse candidates by providing equal opportunities at each level within the organisation. Finally, salary transparency enables employees to compare salaries among other co-workers and can be used as motivation when pursuing career goals.
Increased employee engagement
When employees feel like they are being paid fairly, they are more likely to be engaged in their work and less likely to look for other job opportunities. This can lead to increased productivity and a more positive work environment overall.
Prevents salary discrepancies
One of the benefits of disclosing salaries when recruiting is that it can help prevent salary discrepancies. When everyone knows the range for a particular position, it becomes more difficult for employers to lowball an offer or pay someone significantly less than others in the same role. This is especially important for ensuring equity among employees of different genders, races, and other groups who may be historically underpaid.
Enhances company reputation
Disclosing salaries when recruiting can enhance a company’s reputation in several ways:
- It can show that the company is committed to transparency and equality.
- It can demonstrate that the company is willing to pay fair wages.
- It can help attract talented employees looking for a company that values transparency and fairness.
Reduces pay gaps between genders
When salaries are disclosed upfront, men and women can be sure they are offered the same pay for the same job. This can help to close the gender pay gap, which is an important issue for many companies.
Allows applicants to make informed decisions
When companies disclose salaries during the recruiting process, applicants can make informed decisions about whether or not to pursue a role. This transparency can help avoid situations where an applicant accepts a job offer only to find out later that the salary is much lower than expected.
Informed applicants are also more likely to be satisfied with their salaries once they start working, which can lead to improved retention.
It helps attract more qualified candidates
By being transparent about what the position pays, companies can save time and resources on candidates who are not a good fit for the salary range.
It helps retain employees
When companies disclose salaries during the recruiting process, it helps to retain employees. Employees feel valued and appreciated when they know their company is being up-front about compensation. This transparency also builds trust between employees and management.
How do companies decide on the salary to disclose for a particular role?
They usually consider the role’s worth to the company and the skills required for the position. They also look at what other companies in their industry pay for similar roles.
Once a company decides to disclose salaries, it must communicate this change to its recruitment team. The recruitment team can then include salary information in job postings and during the interview process.
Where does your organisation stand on disclosing salaries during recruiting? Is it something you already do, or would you consider doing it in the future?
Want to discuss salaries or explore different approaches to disclosing salaries? Get in touch!