Salary Transparency - A Game of Cat and Mouse
Salary Transparency
The Game of Cat and Mouse
Have your say! Should publishing salary ranges on job ads be standard practice? We think so, but we would love to hear what you think.
The balance of power between companies and job seekers continues to oscillate, however, the call for greater transparency in the job process continues to get louder.
Salary is one major data point that still largely remains hidden, even though that is the number one thing over 90% of people look for in a job ad!
We see and hear of the benefits from progressive startups like Runn in Wellington, which see a huge volume of applications for roles they list and salary transparency being a key factor.
This is backed up by anecdotes of love from job seekers in our community that often comment to the effect of:
"I want to find more companies like Runn".
With this in mind, we thought we would take a deeper dive into the pros and cons of listing salary ranges on job ads, to better understand why it is yet to become the norm and why it is still such a hot topic of conversation.
What are the benefits
1. Pay equality
Let’s start with the obvious. The pay gap is still very real. Women and minority groups on average are paid less than their white male counterparts. Not being transparent upfront allows bias to creep into negotiations, reinforcing pay gaps.
2. Higher volume of quality applications
Aside from making the negotiation process fairer for everyone, being transparent upfront enables people to rule themselves out of the process early if the salary bracket does not align, ultimately saving both parties a lot of wasted time.
Companies often worry that by publishing salary ranges, they lose the power of negotiation and perhaps miss out on top-level candidates, whereas the data shows that 82% of people are more likely to consider applying if a salary range is listed.
3. Higher trust and better retention
Another top concern of companies publishing salary data is that it could lead to negative consequences, such as creating tension and conflict among employees and limiting a company's ability to negotiate salaries based on individual skills and qualifications.
However, these concerns are largely unfounded. A study by PayScale found that companies that are transparent about their pay practices have a more engaged workforce and lower turnover rates in the long run.
Moreover, treating prospective candidates well in the application process can be a strong demonstration of your company's values at the start of the relationship.
In summary, we believe that it is high time companies start removing a lot of the barriers they put in front of job seekers, and salary would be a great start!
Do you think this game of cat and mouse is still justified in this day and age? What companies are leading the way and what is not being considered? Share your thoughts here.