Unveiling the mystery behind the absence of salary details in job advertisements. We delve into the strategic reasons and implications for both employers and potential employees. A fascinating exploration of corporate tactics and job market dynamics awaits.
Pay is a major factor in whether a candidate takes a job – or even applies in the first place.
However, many employers still leave out compensation details in adverts, often out of fear it may put them at a competitive disadvantage
- This hurts workers
- Knowing the expected salary upfront lets a candidate understand whether a job will be financially viable for them
Bottom Line
Overall, salary transparency has been a win-win for both employees and employers.
- Potential employees are thankful that salary information is made public, and employers don’t waste time checking resumes of people who are clearly thinking of a higher or lower salary than they will offer.
PayScale’s Holt thinks the move toward more pay transparency will take a while to catch on
But she does see signs that the tide may be shifting
There’s a growing global movement to make salary transparency the law
An increasing body of research shows that companies who are forthcoming about their wages can attract better, more diverse talent, making salary transparency an actionable way of creating a more equitable workplace.
- This is why companies should be more forthcoming about salaries.
Without pay details, candidates can’t accurately assess when they can afford to take a certain job
Only 12.6% of global companies published the pay range for a role within their job ads last year, according to a 2021 report from Seattle-based compensation data company Payscale
- In an ideal world, everyone doing the same job would make the same amount of money when they start. But that’s not always the case
- Employers don’t want to publicize how much they pay because it’s going to create resentment among their employees
- If you keep compensation private, it protects the employer and allows the employer greater discretion
- Many employers also withhold salary information to give them more negotiation leverage
- A competitive advantage?
- Organisations that are more transparent about their salaries can win over the best candidates and attract diverse applicants
- Equality also extends to helping improve the gender pay gap
