You’ve almost certainly seen these. Perhaps you’re guilty of publishing one (or many). That would be a job posting that includes an in-depth description of a role, desired qualifications and the company that’s hiring…but does not include any salary details.
It might include something along the lines of “we offer a competitive compensation package.” Unfortunately, that doesn’t provide anything for potential applicants to work with. Imagine if you got a quote from a company that you were hoping to procure a service from and all it said was “we offer competitive pricing.”
Expectations have shifted amongst job seekers. No longer will vague terms such as “we pay a competitive salary” attract quality applicants. In this video, Tom Nickalls – Founder and CEO of Castle HR, will walk you through 6 reasons why you absolutely should be including salary and compensation details in your job postings.
Keeping a role’s salary a secret and unveiling it during the interview stage, or worse, when presenting a job offer, is a dated practice. It can create friction in the hiring process and result in poor retention rates. To be honest, we cringe when we see companies doing this!
We firmly believe all modern business owners should include salary information – or at least a range – in their job description. Here are 6 reasons why:
1. Honesty Builds Trust
It’s never too early to start building trust! Think about it, the moment a candidate opens your job posting and contemplates applying, your relationship with them has begun. First impressions matter and they have now started the process of deciding if they want to extend an offer to escalate this relationship.
Sharing information about the salary associated with the role shows the candidate that you value transparency, right off the bat. Promising them you’ll “tell them later” is a bit misleading and could ultimately make great potential candidates wary and uncomfortable.
2. Salary Information is the FIRST Thing They Look For
Information about compensation is what applicants immediately skim for in a job posting. Over half of the respondents (55.8%) to this 2021 survey stated that clarity around compensation was the most important element of the online application process to them. That includes the salary range, potential bonuses, benefits and any other relevant company perks.
Simply put, they want to know if a job is worth applying for. Positions such as developers and sales representatives can have varying salaries, depending on the industry, company and experience required. So it’s important to get out in front of this incredibly important detail. No one is expecting you to be accurate to the penny, but at least try to present a ballpark of the package that the successful candidate will receive.
3. It’s Not a Secret
As much as you might think you’re being elusive, people can easily scour the internet to learn what salaries your company offers. They can see what your competition offers, too. Even if your company is new and small, it’s not hard to find geo-specific industry averages, and now you’re letting a third-party database influence their compensation expectations.
4. Revealing Salaries Aides Internal Transparency
If you’re hiring for a role that already exists within your company, it’s absolutely critical that you maintain transparency. This means posting the salary range publicly in your job posting. Your employees who currently work in a position that is identical to the one you’re hiring for deserve to know (approximately) what your new hire will be earning. Why? Because like it or not, younger employees are feeling increasingly comfortable sharing salary information with each other.
Should you end up having trouble attracting qualified applicants at the posted salary range, this may actually be a positive. You now have feedback from the market that your going rate is too low. This is an opportunity to reassess your compensation strategy, allowing you to proactively adjust internal salaries before you have a turnover problem on your hands.
5. People Will Self Disqualify
Remember #2 above? Well, when job seekers inevitably find this prized piece of information, they can now opt out if the amount doesn’t align with their expectations. At face value, this might seem like a bad thing, but this actually works in your favour because…
Self disqualification is a huge time saver! Just ask anyone who has posted a job and then received hundreds of resumes in return. Only to then realize, with very bloodshot eyes, that very few of them are actually suitable for the role.
If you include the salary information in your job posting, candidates will be able to decide if they are over– or under–qualified for a role, thus saving you time and money.
6. Salary Details in Job Postings is Becoming the Norm
It’s true! Many companies are adopting more modern practices and implementing strategies that work to attract today’s best employees. It’s a candidate’s market at the moment and salary transparency is a proven way to stand out. Not only will you see a better ratio of qualified applications to total applications, but you’ll likely see a higher volume of high-quality applications overall!
Honesty and transparency go a long way in today’s workplaces. And it never hurts to simplify your talent acquisition process where you can. Finding great people is hard enough as it is, so why make it harder than it has to be?
As an added bonus, this can boost your retention. You’ll be more likely to hire an employee who is aware of the salary, growth opportunities, and expectations associated with their role. Also, as touched upon in #4, you’ll have a feedback mechanism to tip you off if your salaries are no longer competitive with the current job market. When it comes to turnover, especially when considering high-performers or loyal employees, an ounce of prevention is worth a pound of cure.