Employers often leave out a key piece of information in ads but it's what many potential applicants want to know
A lot of time is spent crafting job ads to attract strong candidates. But according to job seekers, too many leave out a crucial detail: What is the salary?
A recent survey by global hiring platform Indeed, found unclear salaries was the number one complaint from job seekers about applying for roles, with 72% saying they wanted salary information communicated upfront.
“Hiding the salary from a job ad actually hurts employers. 86% of candidates say that when companies don’t disclose salary upfront, they’re more likely to miss out on great people,” the report states.
The survey of 1027 job seekers found 97% used salary transparency to help them to apply for a role and 96% said it reduced time wasted on unsuitable roles.
To deal with the issue, new pay transparency rules have been introduced in Ontario, Canada, requiring publicly advertised job postings to include information about expected compensation for the position and salary ranges cannot exceed $50,000 (CAD).
According to specialised HR recruiter and associate director at Robert Half, Emma Sestic, employers often need to keep remumeration confidential to stay competitive.
"Many businesses avoid listing salaries in job ads to keep room for negotiation or stay competitive with other employers," she told HRD.
"Some also worry that posting a salary could attract applicants focused more on pay than on fit or skills. However, this is changing as more candidates expect transparency before applying for a role."
Responding to the Ontario law change, employment lawyer Maria Constantine, partner at Cassels Brock & Blackwell told HRD Canada, one issue for employers will be managing the internal response from employees who realize they’re earning less than new hires for the same job.
“There may be employees who are earning compensation at the lowest end of the range for their role, and they may not learn of that until they see a job posting for their same position that their employer has posted,” she says. “That's, I think, going to be the more challenging aspect for employers.”
Pay transparency expert Professor Carol Kulik (pictured above) from the University of South Australia, said while Canada was ahead of the game, she was disappointed we even need regulation in the first place.
“You need to give enough information to be able for them to assess whether the job is a good fit for them – and pay is one of the most important things. It’s a big investment to develop a good job application," she said.
“It’s so disappointing when, after going through the application process, the candidate decides they aren’t going to take the job because the salary is so different from what was expected."
The cost of hiring is already cumbersome for many organisations, Kulik said and that price increases when obstacles are in the way.
“Think of it in the same way as employee alumni,” Kulik stated, “When an employee leaves an organisation, they become ambassadors for your culture.”
“For an applicant who doesn't join your organization – that’s still a branding and reputational issue, and so it's a mindset I think that organisations have to develop.".
“It’s short-sighted to think of the job applicant and hiring process being all there is to a relationship. The applicant you reject today might apply for a different job tomorrow – or may even suggest other people to work for your organisation,” Kulik said.
“One thing that’s often looked over – emphasising process and fairness in hiring, you’re saving effort with onboarding because applicants are already immersed in your culture..
Kulik concluded that many of the issues facing prospective candidates in the hiring processes is due to the bureaucracy within it.
“Organisations might have six stages in the application process, instead of once or twice. I think people need to recognise that this, in many cases, is just too much. The higher the effort put in to apply for the job, the greater the expectations when it comes to feedback and compensation.”
She suggested that, similar to the Indeed research, application processes are streamlined to better meet the needs of candidates.
