How would you feel if you were scrolling through your favourite online shopping site and only half of the prices were available? Would you be interested in the products with no price or refine your search? It’s frustrating and concerning when people hide details and it’s just the same can be said for job descriptions.
Since the pandemic, hiring has once again become competitive. Companies can’t afford to lose opportunities when searching for the best candidate. Not including a salary hides more than you might think.
For example: Not posting a salary could raise some common red flags. The company might not be able to afford you and is hoping that once they get you at the table, there’ll be other ways to entice you. Of course, also once at the table, they may hope to negotiate the salary, leaving you out of pocket. Another reason why they might hide the salary is that they don’t want other employees to discover pay inequality, which wouldn’t create the best office culture to say the least.
While tradition tells us not to reveal the salary, here are7 reasons why you should:
1. Pay and pay transparency are a priority
One of the first filters a candidate will select is the pay range. Job ads on Indeed with a salary receive 40% more candidates than positions without a salary; Monster reports a 30% difference. A lack of pay transparency may encourage candidates to think that the salary is low and already, leaving you with a much smaller talent pool applying for your job.
2. It’s what millennials and Gen Z workers want
Going back to transparency, the only way to reduce and even eliminate the wage gap is to openly discuss how much people are earning. Even with campaigns like Show the Salary and other worldwide movements, only a small minority of companies encourage pay transparency. Such practices aren’t going to create a sense of trust.
3. Advertising salaries reduces bias
Although there are laws against wage discrimination, there may still be some bias during the hiring process. For example: Two people might be offered a different salary based on their age rather than skills as an employer may feel the older candidates deserve more; women are still earning less than men; and race discrimination can be even worse.
4. Candidates are going to try and find out anyway
The internet offers a wide range of resources to find information that employers would otherwise try and hide. Sites like Glassdoor and Salary.com only require a quick search and a candidate might well be able to find out what you would prefer them not to know. While on their research mission to discover salaries, ex and current employees might have other information to share; it’s worth remembering that salary isn’t necessarily the only thing that will attract a candidate.
5. Both parties save time
The hiring process from interview to offer should take no more than 30 days. Naturally, you want to have a high number of applicants but this also risks lengthening the process. The longer the process, the more time there is for competitors to snap up your perfect candidate. To keep your hiring process short, you only want to interview people who are qualified and genuinely interested. Those that hear the salary later and then walk out are a waste of your time (they are also wasting their own time, which reflects poorly on your employer image).
6. Your budget is more controlled
If you haven’t advertised the salary in your job description because you aren’t sure yet, your annual budget is impossible to complete and stick to. The same can be said for your future budget. You should commit to a salary, announce it, and then follow through with your budget. This will stop any negotiations, which can be extremely stressful.
7. Your company stands out from the rest
The Great Resignation has changed the work environment as well as employee expectations and priorities. Culture fit and flexibility are among higher wages as priorities. As the competition continues to increase, you are going to have to find innovative ways to stand out. Pay transparency could be a useful way to boost your employer image in the market.
In concluding, if you aren’t confident about setting an exact salary, at least show a range to give candidates a greater sense of reassurance. Remember too that remuneration is important but not the be-all and end-all so include any extras that are available, and always show candidates that your company supports personal growth and development. Transparency in all these areas can attract the best candidates for your roles, save time, and boost your company’s public image as an employer.
If you are an actuary, lawyer or chartered accountant and interested in working in the Bermuda/Caribbean region, visit our jobs portal to see the latest vacancies. Our site also includes a downloadable All You Need to Know guide which will tell you all you need to know about living and working offshore.
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