Amid an unprecedented labour shortage and a record number of vacancies, companies must pivot in the way they communicate info about the available jobs. With more than four in ten (42%) companies currently finding it ‘more difficult than usual’ to generate job applications, the research illustrates a clear need for businesses to change the way they communicate the job info. Namely: job salary transparency.
62% of hiring managers believe a lack of salary transparency on job ads has no negative impact on applications.
Interestingly enough, it is the very thing the majority of hiring managers do not think has a negative impact on applications. While jobseekers state salary as being the number one reason to apply for a job, almost two-thirds (62%) of hiring managers believe a lack of salary transparency on job ads has no negative impact on applications. Meanwhile, less than half (46%) of employers have a salary transparency policy.
‘You wouldn’t shop in a supermarket that doesn’t list its prices’
The research found that those that do incorporate salary details, generated more 27% more applications on average. It also ensured those applications were more relevant (38%) according to hiring managers, and ended up saving time throughout the recruitment process (35%). Commenting on the pay transparency research, Simon Wingate, managing director of reed.co.uk, pulled no punches.
Why should we expect people to sift through job ads that don’t advertise salary?
“You wouldn’t shop in a supermarket that doesn’t list its prices, so why should we expect people to sift through job ads that don’t advertise salary?”, he asked. “From our research, it’s clear that jobseekers want to apply for roles at businesses that are open about what they pay. Reed.co.uk always displays salary ranges on its own job ads and encourages employers to follow suit.”
“Businesses need to be more open to salary transparency or risk losing out on the best candidates.”
“Not only will you generate more applications, you’ll likely improve relevancy and save time in the process”, Wingate adds. “You’ll also be able to attract from a wider talent pool and avoid any negative impact to your employer brand. Businesses need to be more open to salary transparency or risk losing out on the best candidates.”
Should it be mandatory?
It raises a question whether job pay transparency should be mandatory. New York City recently passed a new law with which employers must have to include ‘the minimum and maximum salary for any advertised job, promotion, or transfer opportunity’. Employers will also have to include the salary range in all announcements or postings.
In March 2021, Ursula von der Leyen, the President of the European Commission, presented a proposal that aims to ensure both women and men in the EU get equal pay for equal work. “For equal pay, you need transparency”, Von der Leyen said in a statement. “Women must know whether their employers treat them fairly. And when this is not the case, they must have the power to fight back and get what they deserve.”
It may take another year and a handful of months, but we could soon have a more definitive answer to Europe’s regulations on pay transparency.
Part of proposal is the notion that employers will have to provide information about the initial pay level or its range in the job vacancy notice or before the job interview. Once adopted, European Member States will have two years to transpose the directive into national law. In conclusion: it may take another year and a handful of months, but we could soon have a more definitive answer to Europe’s regulations on pay transparency.
