Pay transparency can be a polarising topic, and choosing whether or not to include salary is one of the much-deliberated decisions businesses will make as they craft a job ad. Determining salary can be complex for small businesses, where salary ranges, job descriptions and position hierarchies aren’t as clear-cut as larger organisations.
There are several factors small businesses should weigh up to make an informed decision about pay transparency. To help guide your organisation with these decisions, here are the top considerations and how to navigate them.
One of the most common concerns we hear is that disclosing salary could limit the pool of job seekers who are willing to apply for a role. At SEEK we see the opposite to be true, with three in four job seekers saying they’re more likely to apply for a role that has the salary range listed, and job ads with advertised salaries receiving an average of 42 per cent more applications.
Listing a salary can also improve the relevance of candidates applying for the role. The end goal of any recruitment process should be finding the right person with the right skills for the job, and salary transparency ensures an alignment of expectations from the outset, saving time for both job seekers and hirers.
Recent data from SEEK shows that the vast majority of Australian workers value the inclusion of salary in job ads. Remuneration will always be top-of-mind for job seekers, particularly in the current economic climate, so it’s not surprising that 87 per cent of job seekers say knowing the salary of a job before applying is important to them. Having a clear idea of salary upfront helps avoid disappointment later in the process, saving time and effort for all parties involved.
Employers might also be surprised to hear that 65 per cent of job seekers are still willing to apply for a role they’re interested in, even if the salary offered is below expectations. While remuneration is important, this suggests that money isn’t all that matters to job seekers. It also demonstrates the importance of considering other ways of attracting talent, especially if budgets are tight and salary isn’t currently negotiable. In these instances, it’s worth considering other benefits you can offer in lieu of a higher salary, for instance additional leave or greater flexibility.
There’s no right or wrong answer when it comes to salary transparency in job ads. As you can see, our data shows that employers who disclose salaries can receive higher rates of application and positive engagement with job seekers and employees. But there are other factors at play, and it’s up to each business to determine the best approach for their organisation and its people.
