Many employers wonder if they should post salary ranges on their job ads. But for employees, you’ll come to find that salary ranges are non-negotiable. Unfortunately, many employers have not caught up to the fact that candidates want to know what they’ll get paid before applying.
In this guide, we’ll show you why salary ranges in job descriptions benefit both the employee and the employer. In fact, you could say that they actually benefit the employer much more.
Why You Should List the Salary Range on Job Ads
Listing the salary range in your job ads could be one of the best decisions you’ll ever make for attracting new talent. Here’s why you should list the salary range on all of your job postings.
1. It’s the First Thing Job Seekers Look For
We all need money to survive, but it seems like employers are turning a blind eye to that fact. Your employees could absolutely love their job, but if they don’t make enough money for their basic necessities, their satisfaction will diminish as a result. This leads to turnover.
Candidates would much rather skip a job posting than take the time to apply if there’s a chance that the job they want doesn’t pay the bills. After all, searching for a job is a full-time job. Not only that, but 82% of respondents said that a salary range would give them a more favorable impression of a company. To impress candidates, you need to give them what they want.
2. It’s the Law in Many States
There are currently 17 states in the US that have laws around pay transparency. These laws allow employees to discuss their pay without receiving repercussions from employers.
But not all of these states require employees to provide salary ranges to candidates. If you live in California, Colorado, Connecticut, Maryland, Nevada, Rhode Island, or Washington, you must provide a salary range to candidates. When you’re expected to do so is up to the state.
For example, in California, you’re expected to provide a pay range after the first interview. With that said, it’s in your best interest to tell candidates about their salary range before the interview. Candidates can always look up what they should expect, so it’s pointless to delay this info.
With a Simple Google search, I can find a salary guide for certified accountants, general laborers, hairdressers, or anything else. As a tip, if you’re going to provide a salary range, keep the range small (i.e., between $10,000). If the range is too large, your candidates are going to assume you’re not sure what you want to pay or that they’re going to get paid on the low end.
3. They’re Going to Find Out Eventually
Some employers hope that if they don’t mention the salary range in their job ads, it will attract more candidates. This is far from the truth. In fact, seeing a salary range in a job posting affects 91% of candidates’ decision to apply. And if you think candidates will accept a job offer anyway once they figure out that the salary range is too low later on in the process, think again.
A Monster’s 2020 State of the Candidate Survey Found that 73% of respondents said that salary is the most important factor when considering a job offer, and 58% of candidates have turned down a job because the salary is too low. Candidates very much care about the money.
Imagine going through the entire onboarding and interview process, only for your star candidates to reject an offer due to salary. It’s less expensive and time-consuming to just tell your candidates how much they’ll make because they’ll just find out eventually.
4. New Candidates are Normalizing Salary Ranges
Millennials and Gen Z are hard nuts to crack for many employers, but they’ve been pretty vocal about what they want from work. A book titled: ”What Millennials Want From Work” by Jennifer Deal found that Millennials are the most likely group to discuss pay with those around them.
Gen Zers are also following this trend, with a lot of research stating that they’re even more likely to discuss their pay at work. Transparency is incredibly important to young workers. If your workplace doesn’t provide that level of security, they’ll feel uncomfortable working for you. No business can afford to turn away workers or care little about diversity, equality, and inclusion.
And if an employer’s reason for not including pay scale is tradition, they can rest easy knowing that young workers are changing the way we handle the recruitment process. But even if not providing a pay scale was still in vogue, there’s still one more great reason to include it.
5. Salary Ranges Help You Stand Out
While adding a salary range to your job posting is becoming more popular, 50% of US companies still don’t include them. This means that if you do, you’ll stand out from your competition. That’s a very good thing in such a highly competitive talent market.
And let’s get one thing straight: candidates won’t leave their old job just to make a couple thousand more per year. If you are recruiting from a pool of candidates that already have jobs, you have to make your job worth the risk of losing what they already have. The best way to do this is by posting salary ranges, as this gives them an idea of what they gain from being hired.
Employers have a lot to lose if they don’t place salary ranges in their job descriptions. Not only could they face a high turnover rate, but they could also alienate the very people they’re trying to attract. We hope that we’ve convinced you to adopt pay transparency in your workplace.