Salary Transparency or Company Downfall?

Should Job Post Include Salary Rates?

The hiring market debate has included salary transparency and if they are beneficial to the applicant but detrimental to the business. The decision of whether or not to include salary postings in job postings is a controversial one. On one hand, salary postings can give job seekers a better understanding of the positions they are applying for and the value of their skills and experience. On the other hand, salary postings can be a deterrent for employers who may be looking to pay lower rates than what is being advertised. Ultimately, the decision of whether or not to include salary postings in job postings is one that should be considered carefully by employers looking to attract the best talent.

Why Should They (Pros)? Pay Transparency. 

When HR departments neglect to include salaries this leaves room for racial and gender wage gaps. Companies like Apple, Disney, Google and Meta (formally Facebook) are required to post pay ranges since the salary transparency bill went into effect 1 January 2023 in California, USA by Gov. Gavin Newsom. This caused major national and international discussion. 17% of US companies made the change without being required by law and 62% are planning or considering the change according to the 2022 Pay Clarity Survey.

The new law also requires employers to provide the slavery range for current employees when asked. Even W-2 contract workers’ pay data is now being monitored by the California Civil Rights Agency to ensure fairness based on gender, race and ethnicity. The goal of gathering the data is to make employers aware of the “occupational segregation” that may be embedded within their company.

Why Should They Not (Cons)? Hiring Complexity 

With the new adjustments, this adds a layer of responsibility when posting a job for employers. The pay ranges not only differ for position but by location. For example, if a company plans to open roles for an international team there as to be research to determine the pay range for the location, compare it to the budget and run it up the chain of command. Overall could lead to opportunities with salary information coming out slower despite the extreme need for hiring worldwide. 

Global cities like New York, USA even argued that salary transparency makes it harder to hire diverse candidates because they offer high compensation for BIPOC (black, indigenous, and people of color) candidates. They suggest that because of this the pay scale would be larger and candidates would not be happy with what the company is willing to offer candidates.

So Should They? Depends On Who You Are, the Hiring Manager or the Applicant.

According to HR News, 26% of professionals are not applying to jobs without the salary being clear. However, 17% of employers said they would never include salary information if not required by law. Head of Permanent Appointments (UK&I), Gaelle Blake commented:

“There’s arguably never been a more challenging time for employers in attracting and retaining talent as the number of job vacancies in the UK continues to climb. What this means is that employers can’t afford to alienate potential talent.

Considering over a quarter of professionals wouldn’t consider applying for a role without knowing salary expectations, employers need to think carefully if they aren’t making this information available….Ultimately, transparency is key.”

Hali Smith 

About the author: Hali Smith
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