Pay transparency is a hot-button topic in the recruiting world right now. Are you on the fence about whether publishing the pay range on your postings is the right choice for your company?
Here are 4 reasons why taking this step can help attract your next great hire:
1. Competitive Edge
Recent surveys show that over 40% of job seekers won’t even apply to jobs that don’t include some sort of salary range. That means if you aren’t posting wage information, almost half of the candidates that see your ad could be skipping over it altogether!
Your competition is also taking notice of this trend. According to Indeed, the percentage of job postings that include pay ranges has more than doubled over the last three years, rising from 18% in 2020 to 44% in 2023. Though the level of job market competition is stabilizing, we are still seeing a low unemployment rate, which means candidates still have room to be picky, especially in high-demand fields. *LinkedIn reports that IT, healthcare, customer service, retail, and service industry jobs are their most in-demand postings this year, so if you are looking for candidates in those fields, sharing the pay data would give you a competitive edge if you’re paying at or above market.
2. Enhanced Recruiting Process
The goal of recruiters, hiring managers, and candidates is always the same: they want a process that’s as simple and painless as possible while taking all the necessary steps to find the right fit. Sharing the pay range on postings helps with this goal, first by weeding out candidates who are outside of compensation before they even apply, saving interview and negotiation time. Smart candidates often come to the first interview with research done on market pay, so they may already have expectations of the range. Time is also saved once candidates make it to an interview- since you already know you’re on the same page with compensation, you can focus on experience, key skills, and culture fit.
Sharing the pay range can also open doors on recruiting websites. Job boards such as Indeed will display their estimate for your role’s compensation based on market data if you choose not to provide one. Other job boards, such as the up-and-coming Get.it, will not allow postings without wage information.
3. Good First Impression
A smart candidate knows that the recruiting process holds multiple clues into the company’s culture. Transparency on job postings likely means that employees experience transparency in their daily work life. According to a recent report by HR Executive, candidates view companies who share pay ranges on job postings as fairer and more honest. Sharing wage data on the posting also increases accountability and helps prevent biases in the compensation process.
4. State Law Compliance
Colorado, California, New York, and Washington require that employers share pay info if the job can be done in those states, including remote roles. Illinois recently passed similar legislation that goes into effect in 2025. So, if you choose not to share this information on your job postings, you will exclude candidates from almost 10% of US states (and this number is likely to grow).
While the thought of adding compensation information to your job postings can be intimidating, it can help set you up for an easier, more transparent recruiting process. However, if you don’t currently practice pay transparency within your organization, we recommend first reviewing your current employees’ compensation to ensure that the posting ranges are fair and in line.
If you need help, our HR experts here at Peoplr are happy to help you with this process and with your recruiting needs once you’re ready to hire!
Have another HR or hiring question? You can ask us anytime via the online chat tool in the lower left corner of your screen. We love helping growing companies thrive and we love to share what we know.
