New report reveals the consequences of not being transparent about pay during hiring
Two in three employers in Australia have lost a potential employee because of salary misalignment, resulting from the lack of pay transparency in the job advertisement, according to a new report.
Findings from a new Robert Half report revealed the impact of pay transparency in workplaces, including the consequences for those who do not implement it.
According to the report, 69% of employers have lost a candidate because salary expectations were misaligned after they failed to include pay details in the job advertisement.
Among them, 22% said they frequently lost candidates to misalignment, while 47% said this happened occasionally.
Nicole Gorton, director at Robert Half, said the findings demonstrate the hiring delay and disruption caused by withholding salary information.
"In a market where skilled professionals are time-poor and highly selective, clarity is a competitive advantage," Gorton said.
"With the state of the current employment market, even losing one high-potential candidate can have ripple effects on productivity, team morale, and business continuity."
The demand for pay transparency comes as job candidates approach career moves with sharper financial awareness due to cost-of-living pressures, according to Gorton.
"Employers who don't address compensation upfront risk progressing strong talent through multiple stages of the hiring process only to lose them at the final hurdle. That's a costly use of both time and resources."
Benefits of pay transparency
In Australia, 51% of employers said they include salary details in their job ads for all or most of their roles, according to the report.
Transparency promotion and trust building has emerged as the top reason (24%) behind this move. Other employers also cited the following reasons:
- To attract more qualified applications (23%)
- To stay competitive (19%)
- To reduce candidate drop-off due to unclear expectations (18%)
- To reduce time spent on salary negotiations (17%)
The report's findings confirmed that being transparent does have benefits, with 91% of pay-transparent employers saying it improved the quality of applications they receive.
Nearly half (47%) of them said the improvement is "significant," while only two per cent said it reduced the quality of applications.
Gorton attributed the better quality of applications to transparency acting like a "natural filter" during the hiring process.
"Transparency acts as a natural filter by aligning salary expectations early, reducing friction later in the hiring process," Gorton said.
"While some employers may choose not to disclose salaries upfront due to internal equity concerns, flexibility needs, or evolving role requirements, sharing a salary range where possible can help set expectations, support informed discussions, and minimise the risk of misalignment."
