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Whether or Not to Include Salaries in Job Postings

Whether or Not to Include Salaries in Job Postings

Goodwin Recruiting has been helping companies identify, attract, and onboard top talent for nearly 25 years. When performing this specialized work for clients, we manage all aspects of a talent search, with a few exceptions. Here is one of those exceptions. While we often assist clients in developing or honing job ads, we do not decide whether a salary or salary range is revealed in a job posting along with the job description. This decision is, of course, at the sole discretion of the client.  

Many organizations have policies that prohibit disclosing salaries, including in posts for new job openings. Others have changed their tune on this, and the reasons are many. Some employers know their salary is at the high end of the pay scale in the market and that publicizing it will attract the most applicants, including the most tenured and experienced people. Other companies share wages as a matter of transparency. Still others do so if their wages are not as competitive, to avoid being flooded with applications from people who will surely demand higher pay and simply skip over the job posting.  

As a hiring executive or hiring manager, should you or shouldn’t you include wages in your job postings? Here are some important considerations.  

In some places, it’s the law  

Over the past few years, new laws have taken effect that require the disclosure of salaries, salary ranges, or hourly wages, as applicable, in job postings. Currently, these laws apply in New York City, Colorado, and as of this year, California and Washington state joined the movement. The list of applicable jurisdictions is expected to grow. These laws are a progression of broader legislation around pay equity and pay transparency laws in general, which have been in existence for many years.  

It’s important to note that when a company recruits for remote work jobs made available to job seekers in other states, job listings must comply with laws where the positions are advertised. Rather than research every relevant state, city, or county (new laws continually emerge), it’s a safer bet and an HR best practice to simply include salary information in all remote job postings that extend out-of-state.  

The pros and cons of listing salary in job postings  

If your organization is not bound by local or state laws and you’re deciding whether to include a salary or salary ranges in your job postings, here are some outcomes you may anticipate:    

Pros 

  • Your job postings will get more attention and response from job seekers. 
  • You’ll attract the top-quality candidates you’re seeking. 
  • You will demonstrate that your company is transparent, open, upfront, and honest. 

Cons   

  • Salary expectations are important, but they’re not the only motivator in today’s job market. A salary by itself doesn’t reveal your total compensation package, which can be a difference-maker to today’s job seekers. So, it’s equally important to cite bonuses, incentives, perks, and the benefits you offer to all current employees, such as health insurance, paid time off (PTO), and a great company culture. 
  • Consider wage gaps. If you have existing employees in the same or similar roles who are not being compensated with equal pay as the job you are advertising, there is potential for unrest, declines in productivity, and resignations. However, there are measures you can take to prevent negative outcomes, such as communicating with existing employees about opportunities and goals to achieve a higher salary.  

A poll of active and passive candidates: Show us the money!  

Goodwin Recruiting recently asked our LinkedIn audience how likely they would be to apply for a job that does not include a salary range in the job posting.  

More than 1,100 professionals responded. An overwhelming number (43%) of respondents confirmed that they would only rarely apply for a job if the salary range was not listed – and only if the position is a great fit. 

How likely are you to apply for a job that does NOT have the salary range listed? 

 

Ultimately, deciding whether to include salary details as part of your job postings is up to you; however, this is certainly an option that is becoming more prevalent, and something candidates are increasingly accustomed to and expecting to see. 

Prepare for the future today  

Pay transparency in general is spreading nationwide. According to Payscale, research shows that by the end of 2023, roughly 1 in 4 U.S. workers will be covered by a state or local law that requires businesses to be transparent about pay ranges. As noted, it’s the law in some jurisdictions with a job advertisement, and in other areas, employees must be given salary ranges when requested, and candidates must be given salary data when switching jobs, during the hiring process, and when being hired.  

Whether or not you operate in a place that requires salary or salary range disclosure to job applicants, it’s essential to stay current for future job listings and in talent recruitment so that your organization can implement necessary, or more desirable or competitive practices.  

Let us help you stay ahead of the curve  

If you are involved in talent acquisition for your organization, you already know that today’s hiring landscape and job market are an entirely new ballgame. The labor market has been tight for an unusually long period of time, and there are so many new variables, like salary transparency, a major trend that will only intensify in the months and years ahead.  

When you need the best talent for critical leadership and management roles, and a recruitment partner with a solid pulse on nationwide pay transparency laws, call on Goodwin Recruiting. We’re ready to assist you every step of the way, including advice on effective job postings that attract top talent.  

Additional Resources:  

How To Navigate New State Pay Transparency Laws In 2023  

Up to Date With Pay Transparency Laws? Here’s What to Know  

Pay Transparency Laws: What HR Pros Need to Know