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5 Reasons to Include Salary Details in Job Postings

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Revealing the salary for a job post is a somewhat controversial topic. Some companies opt not to disclose this detail in their hiring advertisements because they are concerned that this could encourage their competition to offer higher compensation and steal prospective candidates and current employees.

However, the lack of salary transparency can cause resentment among coworkers, especially when new employees get paid more for the same amount of work.  

But as the job market becomes saturated with candidates and competitive businesses, more companies are revealing salary details in their job postings to attract more applicants. Doing this can increase the number of applications that a company receives and help ensure the satisfaction of its workers.

If your company is preparing to post about its openings, read on to better understand how salary transparency in job advertisements can benefit your company. 

Increases Attention from Qualified Applicants

Companies that have salary details in their description can attract more applicants. The reason is simple: jobseekers consider pay to be a deciding factor when applying for or choosing a job. When companies have salary transparency, candidates can immediately determine if they’ll receive the appropriate compensation for their skillset. 

For example, if a software developer is looking for IT jobs in Manila, they’re likely to find a number of available listings. However, if your job post is the only advertisement that indicates a salary range and it matches their expectations, they will send their resume to your company instead of those posts that don’t have any information on income packages.

In this way, your company is also more likely to attract the best candidates because your detailed listing sets you apart from other companies. 

Creates a Better Company Image

Salary transparency can show that your company itself is transparent about its processes. It signals a healthy work environment that recognizes the value of its employees.

This also plays a role in shaping the candidates’ first impressions of your work culture and being upfront about salient details shows that you value efficiency. Instead of waiting for an interview to discuss compensation, salary transparency in your job listing immediately informs the candidate of what they can expect when working with your company.  

Your company’s transparency can also boost your company’s image. When people talk about your company, they can associate you with good work culture and fair treatment of employees, which entices more candidates to apply. 

Allows Applicants to Discuss Their Salary Expectations

When your company discloses a salary range, it also shows your willingness to negotiate. Through these salary negotiations, applicants are more likely to feel satisfied with the compensation offered and choose your company over other opportunities they might receive.

Apart from the monetary compensation, your company’s flexibility and willingness to compromise can be drivers for applicants to want to work for your company instead of your competitors. 

Do note that your company doesn’t have to disclose the full salary range in the job advertisement. You can list the starting base salary for the position and discuss the pay range with applicants who’ve reached the final interview. In this way, you can have a better assessment of the candidate and present an appropriate compensation for their skillset. 

Decreases Salary Gaps

Salary transparency can decrease the pay gap between applicants and employees. When more companies start including their salary offer or salary range in job posts, the salary market for that post will stabilize. A stable salary market shows candidates that this is the salary range for the job they’re applying for.

While some companies might think this can cause them to lose potential candidates, not having your salary offer in the job description also deters candidates from applying.

When your company and other businesses offer relatively similar salary packages, applicants will see that they’re going to be fairly compensated. They will then consider other factors aside from pay to narrow down which company to apply for or work with. Your company can also attract candidates by providing other company benefits, such as additional paid time off, health and medical insurance, and more.

Lessens Applicant and Employee Turnover Rates

Because of your company’s salary transparency, you can keep your applicants interested. For one thing, candidates already know that your company can pay them fairly. They may also be less likely to give up during the hiring process because the salary range allows them to negotiate. 

Even if they don’t apply at first, applicants will keep coming back to your company’s job posting and compare it to other companies that don’t mention their pay range. If they find more companies with no pay in the description, they will more or less apply to your company. 

Likewise, salary transparency can lessen the employee turnover rate. When employees know that they’re being fairly compensated, they’re more likely to stay in your company and be motivated to perform well. Transparency also allows for a healthy work environment where colleagues are respectful of one another.  

Salary transparency might seem like a “young company culture” trend, but there are clear benefits for companies to apply this to their job listings. In this competitive job market, make your company stand out by being transparent with salary offers.

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