Should You Include Salary on Job Postings?
In recent years, pay transparency has become a frequently discussed topic among employees and employers. A primary question asked by employers relates to whether they should include salary on job postings.
While potential candidates would almost exclusively answer “yes” to that question, the opinion amongst employers varies. There are both pros and cons to including a salary in a job description, with those including an exact salary or salary range often winning the fight for the best talent in the recruitment market.
Want to learn more? Keep reading to answer the question: “Should salary be in the job description?”
Is It Necessary to Include Salary on a Job Posting?
While posting a salary or salary range on a job posting is not always necessary, it is becoming more common. Additionally, certain states are now mandating salaries on job descriptions for some or all companies. States that require salary in job postings include California, New York, Washington, and Colorado. Recruitment website Indeed is also beginning to add salary ranges to postings on their website that don’t already include salary information.
Why Don't Jobs Post Salaries?
Employers don’t post salaries for a range of reasons, these include:
Having a wide salary range and are willing to hire someone with less experience but lots of potential for a lower-than-average salary or someone with a vast amount of experience for a higher-than-average salary.
Not wanting to lose negotiating power by showing candidates upfront their salary offer for the role.
It being industry standard to not post a salary on job listings.
Salaries being dependent on the location of the employee (for remote jobs), so the hiring team can’t offer an exact salary on a job post.
Wanting applicants that are passionate about the position, not just the salary.
Unfortunately, some companies may not advertise a salary on job postings as they don’t want current employees to know what they’re willing to offer for the role.
Should You Include Salary on Job Descriptions?
If you do have the choice to add salary on job postings, should you? It’s important to note that the practice is becoming normalized. However, approximately 50 to 60% of companies still don’t post a salary or salary range. Due to that fact and the fact that many candidates are looking for a salary range, adding one can be an excellent way to attract more qualified candidates and stand out in a crowded job market.
If you’re still weighing up the pros and cons of adding a salary to job postings, read on for some benefits and potential drawbacks of the practice.
Over half of companies don’t include salary on job postings, but that doesn’t mean it’s best practice to not mention salary.
Benefits of Including Salary on a Job Posting
1. You’ll Get More Applications for Talented Candidates
The best candidates in the job market are selective with where they apply. When job searching, they’ll generally make a list of positions they’re interested in and then apply to the most desirable on that list. Not telling candidates how much they can expect to make in the role can put you on their “pass” list. They don’t want to waste time applying for something and later find out they won’t be compensated enough.
Adding a salary will notably bring good results if you plan to offer a higher-than-average salary for the role. This higher compensation is a significant selling point that will attract top talent and make you an employer of choice, so you want to promote that.
2. Candidates Will Try to Find a Salary Range Anyway
Another benefit of putting a salary on job postings is that candidates will know for certain what range they can expect. If you don’t put salary information, candidates are likely to make an estimate themselves.
They can look online to get an average for the industry. They can even discover what you give your staff already via websites like Glassdoor. Of course, this range they generate may be inaccurate and not represent what you’re actually offering, whether it’s higher or lower than your hiring budget.
That’s especially damaging if you plan to give more than the maximum a candidate thinks they’ll get based on research. You may miss out on candidates because they believe you won’t offer the salary they deserve for their experience when you will. Therefore, it’s generally best to tell candidates your salary range upfront to avoid them doing their own estimations.
3. Saves Time in the Hiring Process
Being upfront with your salary offer will generally save time in the hiring process and avoid disappointment if you lose a great candidate because you can’t come to a salary agreement.
It’s also unlikely that an individual would leave their current job to be paid the same or even less. No matter the reason for looking for a new job, most candidates want a decent raise on their current salary, especially if this position requires more responsibility and experience than their old role.
By not discussing salary until you present an offer, you may end up wasting time and resources (and your candidate’s time) interviewing and going through other parts of the recruitment process, like checking references, just for the candidate to decline a job offer. Had you made the salary range clear up front, only candidates that are happy with that would apply, making it likely that you’ll come to a salary agreement and they’ll accept a job offer at the end of the process.
Adding a salary or salary range to job postings can help attract top talent and save time in the hiring process.
Negatives of Including Salary on a Job Posting
1. May Lose Out on Candidates that Want More Compensation
Top candidates may pass on your job opening if the salary posted is too low. Had you not posted a salary or range, these candidates may have applied and been enticed to take an offer with a slightly lower salary based on the company culture and opportunities you offer. However, this is often unlikely as salary is a primary motivator in accepting a job offer.
If your salary is lower than average by choice, increase it or lower your expectations and experience needed for the role if you want to attract the best talent. If you’re a smaller company or start-up and really can’t offer any more, explain this in the job post and highlight all the added benefits candidates will get working for a smaller company.
For example, they’ll benefit from a flat hierarchy, flexibility, and/or the ability to move up in the company quickly and get increased compensation as the new business grows. While this tactic won’t encourage everyone that wants a higher salary to apply, it can attract additional top applicants that wouldn’t have applied if you hadn’t explained the reasoning behind the salary and all the added benefits they stand to gain.
2. Unqualified Candidates May Apply Because of a High Salary
One of the possible drawbacks of adding a salary on job postings is that you may get more applications from unqualified candidates because those individuals want the high compensation.
However, assuming they don’t falsify information on their applications, you should be able to quickly see from their resume that they’re not qualified. Or, you may never even see these applications if you’re using applicant tracking software (ATS) that only forwards the applications from the most qualified candidates.
If you include a competitive salary on job postings, underqualified candidates are more likely to apply.
3. All Candidates May Expect the Top of Your Salary Range
Posting a salary range instead of an exact salary is a good practice and gives both parties room to negotiate. In addition, you may be open to varying levels of experience, with different salaries appropriate for varying experience levels.
For example, you may be happy to hire a candidate with a little less experience because they seem like a great culture fit. However, this slight lack of experience means it’s fair that you pay them a little less than you would have had they met all qualifications in the job description.
Unfortunately, many candidates see the upper end of the range and assume that’s what they’ll get, even if they don’t meet all the requested qualifications. Once they get a first offer or final offer after negotiations, they may have resentment and not accept it, even when you justify that offer. Had you never posted a salary or salary range, they may have been happy with your final offer and accepted the job.
4. Difficult to Add a Range if Using a Sliding Scale for Remote Work
Companies that have remained remote since the pandemic may have looked at changing salaries based on where remote employees are located. If you use this model and pay new employees the average salary for the role in their area, putting a set salary on job postings or even a range can be challenging. Again, candidates can also be disappointed if they don't get the higher end.
For example, you may want to hire a highly experienced candidate in a low-cost-of-living area. In this situation, the candidate will be offered your top salary for that area. However, that amount won’t be the top of your overall salary range, as that’s for high-experience candidates in high-cost-of-living areas. Explaining this can cause issues and resentment and result in the great candidate rejecting your job offer.
Salary Negotiation Tips for Candidates
Salary Negotiation Tips for Candidates
Navigating questions throughout the recruitment process for candidates can be challenging. If you’re wondering how to answer difficult interview questions related to pay, like “What is Your Desired Salary,” here are some tips to keep in mind.
During earlier interviews and the application process (for example, if you’re asked for a desired salary when you apply online), say that you’re open to discussion once you hear more about the role.
Once you reach the second interview and further, if applicable, you can still say that you’d rather discuss salary once you have a full offer. By doing this, you avoid effectively deciding on a salary before seeing a complete outline of your job responsibilities. Your final job offer may then end up having the salary you discussed but more responsibilities than expected, for which you would have requested more compensation.
Additionally, you could turn the question around or even ask first, asking the hiring board what their budget for the role is. However, do note that many hiring teams will be vague about this.
Salary Negotiations
Whenever you decide to begin giving numeric value and negotiating, state the higher end of your salary range based on what you truly feel you deserve and market averages. To be successful, doing research before you begin salary negotiations is crucial. Look at both market averages for the role and information regarding what the company currently offers employees in similar positions, for example, via Glassdoor.
By giving the higher side of your salary range, you’re much more likely to come to a compromise that is around your desired salary. This tactic means you may even get more than your desired compensation!
Need more tips on navigating the job offer process, read our article on how to successfully negotiate a job offer.
In Conclusion
This article should have given you more information about best practices relating to including salary on job postings. In some states, the decision to do so or not is no longer in the employer's hands, with salary ranges being mandated on all job descriptions.
However, for employers that do have the choice, including a salary or salary range is becoming a necessity to attract top talent and stand out in a competitive recruitment market.