Pay ranges let candidates know what they can expect to make in a specific job, and it can help employers find candidates that are a right fit for the role. However, if you’ve never disclosed your salary range in a job listing before, it’s natural to feel unsure about how best to approach this topic when posting jobs online. Here are some tips and reasoning on why to disclose your pay range in your job postings:
You’ll avoid wasting time and finances on candidates who can’t afford to take the job.
Each time you hire, you spend hours writing job descriptions, reviewing candidates’ resumes, and conducting interviews. You’re also paying an employee to replace the one who just left your team. Imagine if all that time and energy could be spent on finding suitable candidates from the start. You can avoid wasting time and finances on candidates who can’t afford to take the job when you initially disclose pay range in a job listing. It will save you time, money, and effort when only qualified candidates will apply for positions at your company.
But suppose your company doesn’t offer a competitive salary. In that case, it might be helpful to your HR team to find other benefits that could be listed in your job listing, such as a competitive retirement plan, no work Fridays, student loan assistance, etc to make your job listing with a lower dollar amount hold more value.
Pay transparency benefits everyone.
One positive thing about pay range disclosure as an employer is you are likely to receive more applicants than a job posting without a pay range. It allows job seekers to make an informed decision about where to apply for jobs.
While an employer can still offer a salary range in a job listing, it gives potential applicants an opportunity to narrow in on their job search and allows the company with the listing access to better leads.
Pay transparency makes things more equitable.
Pay range transparency is a way to make sure job compensation is fair across the board in an industry. It also forces employers to have documented reasons why people are being paid what they are offered.
Previously, large corporations have underpaid people without reasoning documented; now, some local governments are mandating job compensation transparency, which makes companies have to account for their reasoning and stay consistent.
Pay transparency helps with employee retention.
As an employer, if you do an external job range review of what competitors are offering for compensation for the same positions at your company, it could help you realize some raises are in order.
By looking at salaries at other companies, you can help retain employees from switching to a place that offers a more competitive job range. By paying your employees more (if applicable), you can avoid the costly and timely process of starting a job search.
Pay range is enforced by law in some areas.
Another reason to disclose the pay range for a position is you may legally have to provide that information based on which state your business resides. A quick google search can help you determine if this is something you should be including in your job listings.
The pay range is an important piece of information to share with your candidates. It helps them understand if they’re in line with the market rate for the position and what kind of salary expectations are reasonable for this role, and also gives them solid data points when negotiating their offers. So next time you have to post a job listing, review this blog to help you determine if you are ready (or legally required) to share the job range.