Why employers should include salary information in their job posting ads

As the Founder and Chief Visionary Officer of job search site College Recruiter, I wish that I had $1 for every time that I’ve discussed with an employer (or their advertising agency) the importance of including in their job posting ads the hourly wages or salary they plan to pay the successful candidate.

Sadly, the vast majority of employers believe that a lack of transparency is better for them and so the candidates who are considering applying have no way of knowing what salary range the employer has in mind. Some candidates will incorrectly infer that the employer plans to pay far less than they are and so don’t apply to the job. Why? Typically because the candidate knows value of their labor, wants to be paid fairly for that labor, and infers that the employer is unable or unwilling to do so.

It may be counterintuitive to some, but a similar problem occurs when candidates incorrectly infer that the employer plans to pay far more than they are. Why would an employer paying more dissuade some candidates from applying? Because the candidate knows the value of their labor, wants to be paid fairly for that labor, and infers that the employer is looking for someone at a far higher level. For example, let’s say that you graduated from college a year ago and have been making $60,000 a year in sales. If you run across a job posting for a salesperson and the salary range is $200,000 to $300,000 per year, you’ll likely understand that you’re not yet well qualified for that role and so you’ll likely refrain from applying. If the posting doesn’t include the salary range, some of those reading it will infer that the salary range is $200,000 to $300,000 per year and will refrain from applying. If that employer actually planned to pay $50,000 to $75,000, then that $60,000 a year candidate should have applied.

My friend, Louise Triance, runs UK Recruiter, a fantastic source of information for the UK recruitment industry. She recently published an article by Emily Buckley of WaveTrackR entitled, Why Job Ads Should Always Include Salary Indicators. Emily identified six compelling reasons:

1. Increased applications. CharityJob sees twice as many applications to jobs disclosing the salary range as those which don’t. JobSite sees 33 to 50 percent more. If you’re like most employers right now in that you’re struggling to receive enough applications to fill your open roles, add the salary range.
2. Time saved. Any recruiter with even a modest amount of experience can testify how frustrating it can be to spend hour upon hour taking a candidate all the way through the hiring process only to have them decline because the salary wasn’t sufficient. If they knew the salary at the outset, they likely wouldn’t have wasted your time (or theirs) as they likely wouldn’t have applied.
3. Access to fair wage. Disclosing salary ranges upfront leads reduces the likelihood of black and female candidates being paid less than candidates who are white or male. If you want to treat equally qualified candidates equally regardless of their skin color or gender, then be transparent about the salary range in your job posting ads.
4. Appeal to a huge percentage of the workforce. I remember when people used to say that members of polite society didn’t talk about religion, politics, or money. First of all, let’s be honest: they always did. They just used that line when they didn’t want to talk about religion, politics, or money. Younger generations — Millennials and Gen Z — are far more open to talking about issues related to money than their Gen X and Baby Boomer parents. The younger generations also care far more about diversity, equity, and inclusion than their parents. If you want to prove that your organization walks the walk and doesn’t just talk the talk when it comes to DEI, share your salary ranges as that will demonstrate that you’re not going to pay someone less simply because you think you can based on their gender, race, or other such characteristic.
5. Encourage applications from diverse candidates. Just as non-diverse members of the Millennial and Gen Z generations want their diverse co-workers to be paid fairly, so do those diverse co-workers. If your postings lack transparency when it comes to compensation, many will infer that you’re trying to underpay some of your employees and they will have good reason to think that they’re going to be your target for that.
6. Gain candidate trust. It is pretty hard to build trust with anyone if you’re not candid with them. If you refuse to share salary information with someone who, realistically, is thinking of exchanging their labor for your pay, how can you expect them to trust you?

The two most common reasons that I hear employers cite when they don’t disclose their salaries is that they don’t want to lose their negotiating advantage and don’t want current employees to know what they’re paying to new employees. Quite frankly, none withstand scrutiny. If you don’t want to lose your negotiating advantage or don’t want current employees to know what you’re paying to new employees what you’re really saying is that you want to underpay at least some of your employees. Not only is that immoral, but it is shortsighted. Want a retention problem? Underpay your employees.

Another common objection to disclosing salary ranges that I hear from employers is that they don’t want their competitors to know what they’re paying. I get that you don’t want to help your competitors, but the only advantage they would have if they had that information would be if they paid their employees more. Now, that leads us to two scenarios: your competitors are either overpaying their employees or you’re underpaying yours. If your competitors are overpaying their employees, that creates a competitive advantage for you, not them. And if you’re underpaying your employees, that’s your problem to fix, not theirs, as your inability or unwillingness to pay the prevailing rate for that talent is not going to impact what your competitors are paying.