Salary Transparency in Job Listings: What Employers Need to Know and Why It Matters
We’ve previously discussed salary transparency and pay equity and how important they are to building trust in the workplace. In this post, we want to help you understand the value of pay transparency in job listings and shed light on things employers need to consider when considering it.
At the time of writing, there are no pay transparency laws in the UK. While pay discrimination is against the law under the Equality Act of 2010, we think it’s only a matter of time before we follow the lead of our friends in Europe and make wage transparency a legal requirement.
But just because it’s not currently required by law, employers shouldn’t overlook the importance of salary transparency. In fact, a LinkedIn study found that 91% of job seekers are more inclined to apply for a position if the job posting includes the salary range.
What Employers Need to Know When Implementing Pay Transparency
As with any transition period, there are challenges to bear in mind:
Internal Differences: The initial salary audit may uncover uncomfortable pay disparities. The best approach is to address these concerns head-on rather than letting them fester and breed discontent.
Employee Resistance: Those used to maintaining salary secrets may be unsure of transparency. Here, knowledge is the tool to lean on: ensure staff genuinely understand the benefits of salary transparency, from attracting talent to building trust.
Competitive Disadvantage: If an employer offers lower pay than competitors, they may be concerned about losing talent to them. Nailing your company culture and building an environment of transparency and accountability can help offset this and maintain a competitive advantage.
Why do we ensure our job listings show salaries and the value of pay transparency?
Shows a commitment to fair and equal remuneration: Including salary information in your job descriptions clearly tells candidates that you value fair compensation. This establishes trust with employees and helps position your company as a fair and ethical employer from the get-go.
Helps drive retention: The first step toward salary transparency is to include salary ranges in job postings. Being transparent about how much you pay new hires can help retain your current employees.
Allows you to stand out from your competition: Offering a wage range in your job advertisements demonstrates that you are prepared to be transparent and honest with your employees. This is an excellent starting point for developing a trusting relationship with those contemplating applying for the position.
The bottom line is that skilled talent will always be in demand. Wage transparency allows employers to attract and engage with in-demand applicants.
In general, including pay ranges in job postings can only be a positive. Once you've nailed your salary ranges, remember to craft an engaging, realistic, and achievable job description. Do you need inspiration to write your next job listing, or are you looking for a new role yourself? Head on over to the Other Box Jobs Board to have a look. Contact us here if you need support reviewing your hiring and recruitment process or ensuring your job descriptions are inclusive.
