Should You Include Salary In A Job Description?
While all the steps in the hiring process are important, they are not necessarily equal. If you falter at the first hurdle, ‘compelling job seekers to apply,’ then filling a vacancy with qualified talent will be almost impossible. The recruitment process begins with job descriptions, so getting these right is vital for attracting potential candidates. And, one of the questions posed most often is ‘should you include salary information in job listings?’
In this article, we explore:
- 7 reasons why most candidates are looking for a new job
- Arguments against including salary information in job descriptions
- Why you should include a salary range in a job description
- How to determine a competitive salary range
7 Reasons Why Most Candidates Are Looking For A New Job
If your recruitment strategy is to have a competitive advantage, it is crucial to have a better understanding of why many candidates are seeking job opportunities. Research shows the top seven reasons candidates are looking for a new position are because they:
- Need a higher salary
- Want a fresh challenge
- Desire new meaning
- Want a better work-life balance
- Need greater flexibility
- Seek career progression
- Do not feel valued
The current salary not being sufficient is the number one motivator for putting a candidate in the market for a new employer. While the overwhelming majority are aiming to move away from a low salary, and that alone makes a great case for including salaries in job postings, it is rarely the only factor. Job ads should consider points 2-7 to attract more applicants, and crucially, top talent.
Hiring Manager resource: We recommend reviewing our guide on How To Write A Job Description to help craft a narrative that attracts the best talent. The guide includes valuable tips and access to a helpful job description template and job description samples, such as a Phlebotomist job description or Human Resources Office job description.
Arguments Against Including Salary Information In Job Descriptions
Only one-third of recruiters continue to argue against including salary bands in a job posting. They make the case that companies have more to offer new candidates, preferring to focus on other benefits. They believe the best candidates are more interested in remote working policies, flexibility, and alternative compensation benefits, such as stock options and bonuses. They think that a candidate that only sees pay as a reason to enter the application process, won’t appreciate the true value of the position or be the right person for their company culture.
Furthermore, some companies think salary disclosure for jobs with a lower salary range will put great candidates off of applying. They believe a company could get a reputation for underpaying. On the other side of the scale, advertising jobs with a high salary range might attract unqualified and junior candidates motivated solely by money.
Another argument against advertising compensation ranges is what happens if the starting salary you offer, is not at the higher end of your advertised salary range. Salary discussions could be difficult and you could give the negotiating advantage to the prospective new employee.
A final woe for companies is what happens if co-workers see a higher salary range promoted in job adverts for the same job. Current employees might feel disgruntled, and it could harm their self-worth.
Why You Should Include A Salary Range In A Job Description
So, what are the reasons why you should include a salary range in a job description?
SALARY IS THE FIRST THING CANDIDATES SEE
Like it or not, a salary range is the first thing job seekers want to see when reviewing job postings. Excellent candidates will be motivated by pay and expect to see it in the first communication (the job description) with employers and recruiters. If your company does not include compensation, the candidate will likely do their research, visiting sites such as Glassdoor or Check-a-Salary, so it makes sense to be upfront and create the best candidate experience possible.
PAY TRANSPARENCY BUILDS TRUST
Pay transparency, and overall transparency throughout the hiring process, is crucial and an important aspect of any well-run business. It makes sense to put everyone on the same page, building trust from the outset.
Job descriptions and job postings with a salary range help job seekers understand their financial position and accurately set candidate’s expectations. Candidates need to know if their minimum or desired pay needs can be met, as well as other benefits that might mitigate higher compensation.
Pay transparency also allows existing employees to understand the company’s salary structure, motivating them to work towards internal promotions and mitigating attrition risks.
INCLUDE A SALARY TO IMPROVE DIVERSITY, INCLUSION, AND EQUALITY
Advertising how much you pay people will set a level playing field for individuals from underrepresented groups and backgrounds and helps break down the gender pay gap. With clear salary bands on job postings, these candidates are less likely to undervalue themselves, as the questions of salary history and salary expectations are avoided.
YOUR COMPANY NEEDS TO MOVE WITH THE TIMES
Millennials, who will make up three-quarters of the workforce by 2025, expect to see pay and don’t often move for less money. That said, work-life balance and flexible working practices are high on the agenda for these prospective employees, and companies wanting top talent should empathise with these benefits just as much as their salaries.
STAND OUT FROM YOUR COMPETITORS
While showing salaries when advertising a position is becoming the norm, almost half of the companies fail to show them. Your company can and will gain a competitive advantage if it releases its salaries with a job description. Your company will save money and time by reducing the number of inappropriate applicants in the candidate pool, by indicating seniority and experience levels.
How To Determine A Competitive Salary Range
To determine competitive pay and compensation, companies should:
- Practice regular salary benchmarking
- Research local job listings
- Calculate median salary ranges
- Factor in other benefits – commission, health insurance, and perks
- Consider experience
- Set priorities – minimise the company wage budget or attract highly-skilled employees
Job Description And Salary Range FAQs
Here we answer your salary range and job description questions.
WHY IS SALARY NOT IN A JOB DESCRIPTION?
An employer may omit the salary range when advertising jobs if they are offering low pay, do not want current employees to know the salaries of new employees, or are fearful of attracting over or under-qualified candidates.
WHAT IS TYPICALLY INCLUDED IN A JOB DESCRIPTION?
A job description will typically include a salary range, location, job summary, roles and responsibilities, job duties, qualifications, and skills.
CAN YOU ADVERTISE A JOB WITHOUT SALARY?
You can advertise a job without compensation and pay information. However, this delays a conversation that must be had and may not promote trust, transparency, the role’s seniority level, diversity, equality, and inclusion.
