Employers have classically shied away from listing pay rates in job listings. Often, the decision to omit those details is based on limiting competitor access to salary details, as well as ensuring companies have suitable leverage when negotiating with candidates. In some cases, it’s also to ensure that current employees aren’t aware of new hire earnings.
However, today’s job seekers have expectations regarding salary transparency. Mainly, candidates want to avoid spending time on hiring processes for roles that can’t meet their financial needs. As a result, there are risks to omitting pay rates in job postings. If you’re wondering if leaving salary details out deters applicants, here’s what you need to know.
Does Omitting Pay Rates in Job Postings Deter Applicants?
Not including pay rates in job postings does deter applicants. Similarly, using vague claims about salaries – such as stating little more than that the company offers “competitive pay rates” – has the same effect.
Primarily, candidates shy away from opportunities that don’t provide salary information since they’re concerned the company isn’t offering what they need. Navigating a hiring process takes time and effort and their part. As a result, finding out well into the process that the company isn’t able to meet their salary expectations equates to wasted time in their eyes.
Additionally, a lack of pay rates in the job posting makes candidates question whether a company isn’t transparent in other areas they deem critical. Essentially, it leaves applicants concerned that the organization is overly secretive or potentially deceptive, both of which harm an employer’s brand. Similarly, applicants may assume that the decision to omit pay details is purely to ensure the company maintains leverage, which doesn’t reflect well on the company either.
By choosing to include salary information in job postings, none of the issues above arise. Additionally, it makes it easier for companies to attract candidates who are comfortable accepting the pay rate the organization is prepared to offer. As a result, it can lead to a talent pool that’s genuinely a better fit for the company. While negotiations may still occur, the applicant is likely to accept a suitable offer within the range since they were aware of it in advance, streamlining the overall process.
How to Present Salary Information in Job Postings
Generally speaking, companies are best served if they list a relatively narrow starting pay range for the position. By noting that it’s a starting range – and not the full range for the job, regardless of tenure or future skill or position growth – candidates understand that there’s room to move up but that their initial salary will fall in that span.
Keeping the initial range narrow also ensures that applicants are comfortable closer to the lower end. Otherwise, if the span is too great and a candidate is offered one on the lower side, frustration and disagreements are more likely to occur.
It’s also wise to include short descriptions of any value-adding perks and benefits. By doing so, candidates can consider the worth of the total compensation package and not just the pay rate, which can lead to better overall results.
