Pay transparency is a hot topic. reed.co.uk research recently found that four in five jobseekers (78%) are less likely apply for jobs without a mention of salary. 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.
The gender wage gap can disappear
To understand the gender wage gap, you only have to look at the numbers. Currently, a woman earns approximately $0.80 cents for every $1 earned by a man, according to research by Payscale. A study by the National Women’s Law Center showed that women stand to lose $406,760 over the course of a 40-year career at the uncontrolled wage gap of $0.80 .
The gender wage gap completely disappears when analysed against against pay transparency.
But according to payscale, that gender wage gap completely disappears when analysed against against pay transparency. Women who agreed that pay was transparent at their organisation earn between $1 and $1.01 on average for every $1 a man earns.
UK Government to pilot pay transparency
The UK government is now leading the way with a pilot scheme. As part of it, participating employers list salary details on job adverts and stop asking about salary history during recruitment. But the buck doesn’t stop there. The government will also launch a returners programme to help women back into STEM careers.
“This new programme will help organisations to recruit and retain talented staff who are often overlooked because of a gap on their CV.”
“Research and employee feedback shows that returning to STEM roles after taking time out to care for loved ones can present significant challenges”, the statement adds. “This new programme will help organisations to recruit and retain talented staff who are often overlooked because of a gap on their CV. By providing training, development and employment support to those who have taken time out for caring.”
‘Wage transparency provides an initial incentive to join an organisation’
Jerome Ternynck, CEO of talent acquisition software provider SmartRecruiters sees the clear benefits of wage transparency. “Wage transparency provides an initial incentive to join an organisation and sets the precedent for the working culture a candidate is applying for”, he told ToTalent in an interview. “Amidst The Great Resignation, company leaders are working to improve company culture to promote employee retention.”
“The initiative can help to close the gender pay gap and empower women to obtain a similar salary to their male counterparts.”
Through including salary range, applicants get a clear view from the offset as to what to expect from a prospective employer. “This reduces the risk of a candidate pursuing a role to then be disappointed due to a salary that didn’t meet their expectations, wasting both candidate and recruiter time”, he said. Additionally, the initiative can help to close the gender pay gap and empower women to obtain a similar salary to their male counterparts.”
“Salary transparency enables a positive candidate experience and increases an organisation’s ability to attract and retain top talent.”
Finally, Ternynck sees it can also reduce unconscious bias. “The idea forces organisations to offer equal pay to employees with the same levels of experience regardless of gender, ethnicity, or race”, he concluded. “Salary transparency enables a positive candidate experience and increases an organisation’s ability to attract and retain top talent on its journey to building long-term hiring success.”
