In an increasingly competitive job market, a great candidate experience can make all the difference when it comes to recruiting. And that means being as transparent as possible during the hiring process. Yet many recruiters fail to disclose a key piece of information—and it could be costing you some of your best candidates. That missing piece is salary information. In fact, according to LinkedIn’s Global Trends 2019 report, 51% of companies don’t share their salary ranges with candidates and don’t plan to do so in the near future. The downside? They’re potentially losing talented applicants and negatively impacting their company culture to boot.
Here’s why you should let candidates know the salary range for a role—and when to do it.
Salary transparency matters to candidates
There’s nothing worse than negotiating with a dream candidate only to find out that you’re miles apart when it comes to the salary range. In fact, it can stop a negotiation in its tracks. That’s because candidates value transparency when it comes to compensation and they want to know what they’re signing up for before the interview process even begins. In fact, a Glassdoor survey found that 98% of job seekers think it would be helpful to see salary ranges included with a job listing. That’s one of the key reasons that sites like PayScale and Glassdoor have become so popular in recent years, and it speaks to a growing desire for transparency in all aspects of company culture. To start off on the right foot with your candidates, let them know about the salary range for their chosen role as early as possible during the process. If you don’t feel comfortable including it in the job listing, then be sure to tell them during your initial phone call. This will help them determine if the role is a good fit and save time when it comes to negotiating.
It can help to close the gender pay gap
Another key reason to disclose salary ranges is that doing so can make a difference when it comes to closing the pay gap. In fact, research from Columbia Business School shows that companies who disclose their salaries reduce the pay gap by up to 7%. Pretty staggering, right? That’s especially important when you consider that women in the U.S. earn on average 81% of what men earn, and that percentage is even lower for women of color. By disclosing salary ranges, you can help candidates get a clear sense of the exact compensation for a particular role and level the playing field in the process. This is also a great way to establish trust with your candidates and to let them know that you value their talents and their time.
Transparency can set you apart from the competition
When it comes to establishing great rapport with candidates and team members, transparency is often a major factor. And while that doesn’t just refer to salary transparency, outlining a clear pay scale is a great start. What’s more, it can have some surprising benefits. In fact, studies have found that disclosing salaries can make employees more productive by as much as 10%. And it doesn’t stop there. Being open about how your company operates, and what employees can expect when they join the team, can improve employee satisfaction and reduce your turnover rate.
In an increasingly competitive job market, prioritizing your candidates’ needs can make all the difference when it comes to finding great talent. By being candid with candidates about salaries, you can establish trust and find the talent you want.