New York City recently joined the localities and states that require employers to include pay ranges in their job postings. Many employers throughout the country are adopting this practice, even if it is not required.
Consultancy WTW’s 2022 Pay Clarity Survey showed that 62% of US companies that are not mandated by local or state statutes are considering or plan to disclose pay rate information in the future. Whereas 58% percent of respondents will disclose a role’s salary range for new hires, 48% will share the full salary range.
The survey found that 16% of companies that include pay rates in job postings see a greater number of applicants than companies that do not include pay rates in job postings. Also, 57% of these organizations use a geographic pay policy to set pay rates or ranges. As a result, you should consider sharing pay rates in your job postings.
Discover reasons why you should include pay rates in job postings and how much information to disclose to employees.
Candidates Want to Save Time Searching for Jobs
Many candidates focus on salary information in job postings more than other details about the position. Therefore, candidates want salary transparency in job postings so they can apply to the roles paying the amount they want to earn.
Interviewing only for positions that pay the desired salary saves candidates time in the job search process. As a result, including pay rates in job postings increases access to talent in your candidate pool.
Current and Prospective Employees Want Fair Treatment
Employees and candidates want to know whether they are being treated fairly and offered equal opportunities to grow within an organization. Therefore, it is in your best interest to evaluate your company’s pay structure, make any necessary changes to the structure and/or employees’ pay, and share details about the pay structure.
Employees Desire Increased Transparency in Company Culture
Companies that include pay rates in job postings should inform their employees about the pay structure. Otherwise, current employees may take issue with the pay ranges being offered to new hires.
Company leaders must be on board with educating employees about pay structure information. Also, managers must receive ongoing education on the pay structure to regularly share the details with their employees. This information should include the components that impact pay ranges, how a role fits with the company structure, and how individual performance affects where an employee falls within the range.
Determine Appropriate Pay Rate Disclosure for Employees
HR professionals and company leaders must decide whether job postings should include the pay range offered to new hires or the role’s complete pay range. Keep in mind that sharing a wide pay range may give candidates the impression that the range is unrealistic or that they will fall on the low end. Alternatively, providing the pay range offered to new hires may lead candidates to believe the role lacks room for growth. Therefore, clarify in the job posting if you include only the starting range.
Need Help Setting Pay Rates?
Connect with Corps Team for help setting appropriate pay rates for your openings. Reach out today.