The Importance of Salary Transparency In Recruitment

The great debate on whether employers should include the salary on a job listing is one that has been going on for ages in the practice of recruitment by agencies and employers alike. In today’s climate, one might assume this is the case, however, it is still not on many job listings. In this article, we will look at salary transparency's benefits for employers when recruiting new talent in 5 quick points.

Key Takeaways

• Salary Transparency in the early stage of job advertising can broaden your reach and target candidates that are not actively looking for employment but are open to new opportunities.
• Salary Transparency can help save you time and money on recruitment by interviewing candidates who applied knowing what the job entails, from job requirements to salary expectations
• Salary transparency is a compelling call to action to apply.
  

The new normal brought on by the past 2-3 years has had a revolutionary impact on the traditional way of work by expanding the concepts of remote working and hybrid working to a variety of sectors that would have never considered these before. This newer way of working has also made recruiting talent a bit more challenging for employers as these concepts added to the list of criteria job seekers look for in job postings. That, and the ever so daunting question of how much an advertised job is paying?

Here are 5 beneficial reasons why salary transparency in recruitment can help you filter out your best candidates, and recruit talent quickly & more cost-effectively:

• It’s the first thing job seekers look for

Job seekers look for better opportunities for work for several reasons, including new experiences, moving to new locations, and taking on new challenges. All of these are directly impacted by how much a job is offering to pay. Indicating how much a job is offering to pay is an almost immediate call to action for a potential candidate to apply for a job, or indicate some interest in your ad.

• Candidates do not leave jobs to be paid the same

A new job is a new opportunity for growth and expansion for anyone, even for persons not on the job market. And in most instances, employees will not leave existing employment for the same salary at a new job. The comfort of working in an environment you're used to outweighs the risk of moving to a new job for the same salary. Therefore, another benefit of salary transparency in recruitment is the fact that it provides job seekers a clear indication of what the job entails and if the remuneration of the job is worth the change. It can also help employers retain talent long-term because salary expectations were met from step 1, on the job post.

• Mitigate time & money wastage on long recruitment campaigns

Recruiting new talent can be a long and expensive exercise. Filtering through many applications is hugely time-consuming, and once you finally get to the interviewing stage the question of salary will come up. By showing how much your advertised job offers, you mitigate the risk of interviewing great candidates that might subsequently lose interest after the interview due to the salary being lower than what they are looking for. Save yourself the time and money spent on long recruitment campaigns by listing your job listing's salary range from the get-go.

• Millennials want it that way, and so does everyone else

By 2025, millennials will make up 75% of the workforce, and as more workspaces get taken up by this demographic, it is important to speak and advertise to their needs. Openness about finance, culture, and diversity in the workplace is a massive topical trend for many people today and an organization that is transparent about pay scales speaks to several factors such as fair pay, equity, inclusion, and diversity. More than this, it is what all job seekers want to know about a job. 

Source: What Millennials Want from Work

• It’s become normal. Be normal too

Recruitment is a very traditional practice that has inherited many traditional ways of doing things. Some of these traditions & practices no longer work in our current environment, and one of these is the lack of salary transparency. Today, more than ever before -companies are focused on diversity, culture, and working environments that are good for the well-being of their talent. And while a potential candidate cannot see this from the outside, salary transparency on job listings speaks volumes about these factors as mentioned in benefit number 5. To that, we encourage companies and recruiters to embrace the change, be part of the new normal, and see salary transparency as a positive tool for hire, and not a weapon for negotiation.

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