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Should salary banding be included on job adverts?

about 1 month ago by Hannah Robson

​There is a constant question asked, should salaries be included on job adverts? There is evidence that 1/3 of people won’t apply for a job if it doesn’t have the salary included on the advert.

There are many benefits to including salaries on job adverts and below are just a few of the examples.

1. Transparency: Including salary bandings in job ads provides transparency to candidates about the compensation range for the position. This clarity helps candidates assess whether the role aligns with their salary expectations and career goals. It also reduces ambiguity and misunderstandings during the recruitment process.

2. Efficiency: Salary bandings help filter out candidates who may not be suitable based on salary expectations. This saves time for both recruiters and candidates by ensuring that only those who are likely to accept the offered salary range apply for the position.

3. Attracting the Right Candidates: Clearly stating the salary bandings in job ads attracts candidates who are genuinely interested and motivated by the compensation offered. It helps in attracting candidates who are within the desired salary range and are more likely to be satisfied with the compensation package.

4. Market Competitiveness: Including salary bandings allows both candidates and employers to assess the competitiveness of the offered salary range within the market. Candidates can compare the salary range with industry standards and evaluate whether it aligns with their expectations and qualifications. Similarly, employers can use salary bandings to ensure that their compensation packages are competitive enough to attract and retain top talent.

5. Legal Compliance: In some areas; particularly public sector, including salary bandings in job ads may be a legal requirement to promote pay transparency and prevent discrimination based on protected characteristics. Ensuring compliance with these regulations helps protect the organisation from potential legal risks and promotes fairness in the recruitment process.

There are equally some cons/disadvantages to including the salary and just a few of these are below:

1. Negotiation Challenges: Providing salary information upfront may limit the employer's ability to negotiate salary with candidates. If the salary range is fixed and non-negotiable, it may deter highly qualified candidates who are seeking higher compensation or have specific salary expectations.

2. Unrealistic Expectations: Candidates may develop unrealistic expectations based on the salary information provided in the job advert, leading to disappointment if the actual offer falls short of their expectations. This can result in wasted time and resources for both the employer and the candidate.

3. Competitive Disadvantage: Revealing salary information in job adverts may give competitors insight into the employer's compensation practices, potentially putting them at a competitive disadvantage. This is particularly relevant in industries where salary information is considered sensitive or proprietary.

4. Bias and Discrimination: There is a risk that including salary information in job adverts may spread bias and discrimination, particularly if salary ranges are not equitable or are based on factors unrelated to job requirements. This can negatively impact diversity and inclusion efforts within the organisation.

Research on the impact of including salary information in job postings on application success rates is limited but growing. However, some studies and surveys have shed light on this topic:

1. Glassdoor's Economic Research: Glassdoor, conducted research on the impact of salary transparency on job applications. Their findings suggest that job postings with salary information receive more applications than those without. This suggests that candidates are more likely to apply to roles where salary information is provided upfront.

2. ZipRecruiter Study: ZipRecruiter, an online employment marketplace, also conducted a study on the effect of salary information on job postings. Their research found that job ads with salary information receive more views and applications compared to those without.

3. Candidate Surveys: Surveys of job seekers have consistently shown that salary information is one of the most important factors when considering job opportunities. Candidates are more likely to apply to roles where salary information is provided upfront, as it helps them assess whether the position aligns with their financial expectations and career goals.