Show me the money!
Salaries are always seen as a difficult topic to tackle. The subject of money can frequently be divisive and difficult to manage, whether we are considering living salaries, tax allowances, or prospects for advancement. In the end, everyone has expenses to cover and lives to live, so why the fuss over money?
According to data from Reed.co.uk*, there was a 27% increase in salary disclosures in job applications in 2021. Our most recent survey** also looked at how candidates are affected by pay transparency to see if this makes a difference in their likelihood to apply (seems obvious, right?). And according to our research, 40% of respondents cited pay as their top reason for looking for a job, after work location (21%) and travel time (7%). This raises the question…
Why aren’t salaries listed in job advertisements by employers?
The first obstacle to overcome is getting people to see your job ad because the market has historically been candidate-driven. You are in a fierce competition to have your advertisements viewed because there are so many possibilities for candidates. All the nice content in the ad is wasted if we can’t draw in job hunters right away.
Yet, 44% of employers claimed they either never or just occasionally provide salaries in their job postings. According to 35% of respondents, remuneration is based on experience. Then 25% answered they don’t want to upset the balance by demonstrating how much a new employee will be making, by keeping everything quiet. And while this strategy is somewhat comprehensible, it is probably harmful to other objectives in your company. For instance, if management appears to be sweeping pay under the rug, favourable employer branding and enhanced diversity initiatives may be at danger of negative press and interpretation.
The statistics demonstrate that including your income in job ads is essential, but we understand if you need a bit more persuasion.
We examine our market data to demonstrate the major advantages of pay transparency and the justification for including wage information in job postings.
You should mention pay in your job adverts for the following reasons:
1. Broaden your range
Salary transparency should be a key component of your diversity and inclusion plan even though it won’t by itself enhance diversity in your business. The research demonstrates that certain recruiting managers are amenable to pay transparency, with 21% specifically disclosing their salary to encourage applications from applicants of different backgrounds.
Over a quarter more applications from candidates of colour were submitted in response to job ads that included salary (27%). Nonetheless, there is opportunity for improvement when a staggering 81% of diverse applicants won’t or are less inclined to apply for a post without a salary indicated.
But, this straightforward addition to a job ad is a tested approach to actually attract diverse individuals when a firm is seeking for ways to draw them to their organisation.
Good training, benefits, and focused marketing are unquestionably meritorious, but statistics show that salary and transparency are equally important in diversity and inclusion as they are in any other area.
2. Reduce the gender pay gap
The gender pay gap is still a problem, but it is slowly but steadily getting smaller overall. According to the government, the pay gap rose to 15.4% in 2021 from 14.9% in 2020 but remained below 17.4% in 2019. However there is still more work to be done, as there are still huge gender pay gaps in high-paid professional professions and across all industries.
Part of the process involves eradicating ingrained beliefs and stigma, but where businesses aim to change things, will be by disclosing salaries and demonstrating that asking (appropriately) for more money won’t be shot down or treated like a taboo issue.
3. Guard your employer’s reputation
Applicants are more knowledgeable than ever, and with access to more information, they will (quite correctly) do their research on your company to gain a complete picture of the position they may be applying for. Honesty is important in this situation since it might give a bad impression from the start, especially when compensation is a major factor in job applications. According to our research, 48% of respondents claimed that a company’s lack of pay has a bad effect on their opinion of it, while just 15% of respondents disagreed.
Why is the business restricting it? What else do they withhold? Is there a “them” and “us” mentality here? Do they not wish to pay their employees fairly, or are they unable to do so?
All of these inquiries are easily raised by the lack of a pay, potentially ruining the company, its culture, and its ethos.
4. Save time and remain current
It makes sense to include salary information in your job adverts since it is a major criterion for applicants looking for work. Reducing the talent pool to manageable and pertinent applications is useful and crucial to maintaining the smooth operation of the recruitment process because there are already so many factors to take into account. When accompanied with a suitable job advertisement, of course, revealing the wage will save you time and money in the long run while attracting more relevant and serious individuals to your openings. This is a practical benefit in your recruitment process.
5. Young individuals won’t apply
Why is this crucial? In the UK alone, there are 14.26 million people in the millennial age group, which accounts for a sizable portion of the candidate market. The demand for talent is also high since there are more types of occupations than ever available to suit the needs of a populace that is technologically aware. According to our survey, a significant 48% of people between the ages of 18 and 35 have a bad opinion of a company that doesn’t disclose the wage in its job listings. A lot of talent is turned off before they even get past the job title when you consider that fraction of actual workers.
6. Applicants will determine their own course of action
The risk here is that false information can improperly sway candidates’ judgement, causing them to pass up potentially ideal possibilities. Businesses consequently lose talent before getting a chance to interact with them. Candidates will naturally want to know if a position is financially realistic for them because the cost of living and economic climate play a significant part in daily plans and the future. This can sometimes come at the expense of fit and desire for the role.
Everyone we questioned indicated they talk about income with their family or partner, and without the right information, this might have a detrimental impact on their decision to apply for a job or not.
Don’t let candidates figure it out on their own and unjustly compare you to rival companies. You’ll receive better prospects if you stand out and give them all the information they require up front, including a precise estimate of the income coming from the source.
7. Provide benefits to increase your appeal
Benefits play a role, and it’s a big one at that, as we just indicated. The majority’s primary concern is undoubtedly pay, but candidates demand more from their employers than just a sizeable, or at least desired, wage. The time when a phone, complimentary tea and coffee, and a beanbag qualified as a bonus.
Additionally, employees seek concrete advantages that improve both work and personal life, and they expect the two to complement one another. 40% of applicants claimed that they would still apply for a job below their expected income, which is difficult to do when there is no salary to support this choice. Post the pay and advantages they may anticipate from working for you, and you’ll notice an increase in applications from the right candidates.
Here are just a handful of the many advantages of listing the salary in your job post. By doing this, you improve the appeal of your job posting and strike a good balance between your needs and those of your prospective employees.
