For HR professionals, securing top talent that fulfils the needs of the business is of prime importance. So surely one would do all they can to attract the best candidates? They would craft inspiring job descriptions: lay out great benefits, offer flexible working, and signpost opportunities for growth. Yet, Noura Dadzie highlights that in the vast majority of cases, job descriptions do not provide the one thing job seekers desperately want to see: salary expectations.
At Talent.com, we believe this is a huge oversight. We conducted research into Salary Transparency in England, and the results were rather stark. The overwhelming majority (98%) of respondents wanted to know the salary of a job, and would be put off before applying if this was not made clear, even at such an early stage of an application process. In the main, the respondents (79%) would also support a law that required employers to disclose salary ranges in each job posting.
With this evidence so clear, it could be incredibly beneficial for HR professionals to include salary information within their job adverts as standard. We’ve put together a list of some of the benefits of salary transparency, in the hopes that it will make you reconsider what you include in your next job description.
What is best for business?
Currently, only 14 percent of job offers include salary information. For some companies, protecting opportunity is their main motive. By omitting a concrete number, they may receive more applications from top talent throwing their hat in the ring, before confirmation of salary. But this can also have a negative effect – losing outstanding candidates once an amount is put forward.
In fact, including salary information may even serve to widen the pool. Our research shows that 75 percent of women and 73 percent of those from minority backgrounds believe that a law enforcing the disclosure of salary in job adverts would have a positive impact on them. Therefore, by implementing salary transparency, you may even see a rise in the overall number – as well as level of commitment – in the candidates who respond to an advert.
Establishing clear salary expectations from the off will likely save time and money for both companies and applicants. The sooner a candidate is in place, you can expect a positive impact on your bottom line, and the main objective has been fulfilled.
Nurture an open and inclusive workplace to support business continuity
In order to weather the coming storm of a cost of living crisis, businesses need to seriously consider staff retention. Hiring is famously expensive. According to research by Oxford Economics and Unum, the average cost of turnover per employee (earning £25,000+) is £30,614. It is therefore essential that companies inculcate a workplace culture where salary negotiations are open.
As part of our survey, we discovered that over a third of job applicants find it difficult to discuss salary at the job interview stage. There is particular hesitation in younger applicants, with over half of Gen Z job seekers saying they wouldn’t feel comfortable discussing salary with colleagues.
Once in a role, the cost of living may become a barrier to these employees’ continued employment, encountering financial difficulties or associated mental health issues.
It would therefore benefit the employer to start these conversations sooner rather than later. They can establish how the topic of salary negotiation is addressed from the outset, thus preserving business continuity in the long run.
Play your role in stamping out inequality
Forward-thinking companies can adopt the practice of salary transparency to demonstrate their commitment to prioritising fair pay and equality. In the current climate, the best talent want to work for companies that respect them, and which stand by their commitment to activities that could otherwise slide into the realm of lip service and box ticking.
By including concrete pay scales in job descriptions, there is a public declaration of the value of that role. With one-third of the survey respondents reporting previous experience of pay discrimination, this is of great importance to a larger number of applicants than one might expect.
There are high hopes. A staggering 71 percent of respondents agreed that salary transparency would help close the gender pay gap, whilst 66 percent believed it would be the case for ethnic minorities. Although not a total fix, it seems an appropriate measure for demonstrating greater equality.
According to our findings, there are numerous benefits to including salary transparency on job descriptions. When the benefits to both the business and applicants are this positive, we hope you’ll consider adopting this strategy in your next hire.