Many employers have conflicting opinions in regard to publishing salaries on job ads. Some withhold the information because they worry it will give their candidates the upper hand when it comes to negotiating pay. Others worry they will lose valuable talent to their competitors, or don’t want their current team to see the information. But is concealing this information actively losing you talent? JobSite reports a 25-35% drop in job applications when no salary is published on the initial ad. And with 81.6% of British workers surveyed saying that salary is the most important thing on a job ad, can you afford not to be transparent with this information? Still on the fence? Let’s look at 4 reasons why you need to start displaying your salary.
You will widen your talent pool
Did you know that simply displaying the salary will bring you 2x the number of applicants? When candidates come across ads without salaries many see it as a red flag, and it often dissuades applicants from applying at all. You don’t want to lose out on the top talent because your ad is actively deterring people. And while some of these applicants may fall short of what you are looking for, you will also receive applications from candidates who are willing to put time and effort into the process because you have been transparent about what you are offering. You may get a few people trying to make the leap from a £40k to a £90k salary, but studies show the majority of candidates won’t apply if they consider themselves to work outside of your salary range. You will attract a variety of talent, and even if you currently only have one role up for grabs, it is worth building a talent pool of candidates to keep in mind as you scaleup.
Diversity, Equity, and Inclusion
Whilst you may be aware of the importance of neutral language when it comes to job ads, did you know that being transparent about salary helps to boost diversity and inclusion? By omitting the salary from your ad, you are contributing to the pay-gap disparity, particularly disadvantaging those from minority backgrounds, and women. Why is this? If a male and a female apply for the same role, research shows that a (white) male is more likely to haggle when it comes to salary- or be given a higher salary to begin with. This leads to the perpetuation of the pay-gap. The Howard and Heidi study is a really interesting one to check out how unconscious bias may be present in your hiring process. By being transparent with a salary you are helping to address the inequality within the workforce. You will also be able to diversify your talent pool and have access to a wider variety of talent as you scaleup.
Our 2020 retention report found that the most important factor to cause people to leave their job is poor company culture. You may wonder why this is relevant, but you would be wrong to assume that a salary is just a number on a page. If you are worried about putting figures on your ads in case any current employees see it and complain, why is this? Perhaps you need to bring someone in at a high level to do a very niche role, or perhaps you aren’t offering your current team competitive rates or proper means to progress- which is something you need to address! Transparency around salary is indicative of a good company culture. If you are the hiring manager in a startup you may well be familiar with the struggles of selling benefits and progression over base salary. If you can’t offer competitive rates at this time, then be honest about this. Ensuring you have a good company culture will not only attract future talent, but it will help you retain your current talent as you grow.
Studies show that millennials are much more open when it comes to discussing money- or in many cases lack of it! This workforce prioritises employer branding and culture. As millennials are projected to make up 75% of our workforce by 2025, it is time you start tailoring your job ads to secure long-term talent. Regardless of whether it is the deciding factor, salary is one of the first things a job seeker will look for on a job ad. Even if you don’t publish your salary, candidates will still be able to find information out through companies like Glassdoor. It is best this information is provided early on in the process and that it comes from you. Cut out the middleman and be transparent with salary. Some employers are worried that they are giving too much away to their competitors by revealing their salaries. But this is where the importance of culture and employer branding comes in to play. A potential candidate will favour the company who is transparent about salary information over the company who can’t give a clear answer. Establishing and maintaining a good reputation as an employer will attract more talent and allow you to build your business. If you want any further information on how to build good employer branding check out our blog here. Our world is changing. Whilst pay is still an important factor in what people look for in a role, more than ever before, people want to work for companies whose values align with their own and are working towards positive change. Displaying your salary might feel like a minor change, but this level of transparency is actively working to combat bias within the workforce. We spend a lot of our time talking to startup and scaleup founders, so we understand you have limited resources and need to maximise the value from investing in your people. We have helped several founders and tech leaders to get a grip on the market and make informed decisions around salary. If you want to make sure you’re competitive in what you’re offering and not risking losing your best please get in touch with our Director, Alan Furley at 0117 428 0600.