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Pay Range Transparency in Job Ads

Pay transparency is becoming a bigger workplace issue. In fact, some states and cities are putting into a law the requirement to include a salary range on job advertisements. With the increase in remote workers, your company could be impacted by these laws. Not including a salary range on job ads could also reduce the number of qualified applicants applying. A ResumeLab’s survey reports that 89% holding master’s degrees expect the listing of a salary range. The survey also shows that 4 out of 5 workers are unlikely to apply to a job if the range is not listed, 14% are unsure if they would, and only 6% are not impacted by the presence/absence of a salary range. 80% of those surveyed feel that companies should always clarify how pay is decided. Including a pay range in job postings reflects a company’s security and job satisfaction felt there.

Companies have seen a positive trend in quality applicants by including a salary range and felt pressure to do so by social pressures of Generation Z employees’ openness. According to Payscale research, those who include it have more than doubled in the last year from 22% to 45% that include pay ranges in job ads. There are positive and negative aspects to posting salary ranges. There is an administrative burden to disclose salaries as ⅓ are not ready for pay transparency. Also there is fear that the range feels inflexible and might price-out potential candidates. However, without the pay range disclosed, job candidates have less trust in those companies. Pay range transparency gives companies a competitive edge.

With the strong job market persisting, recruiting and retaining expertise remains a HR concern. Pay transparency is an indicator if a company values employees’ whole selves.

If you are unsure how to post strong job advertisements or need assistance hiring, HR Synergy is here to help you.

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