For many years, withholding pay information from job postings was the norm. As localities across the country begin requiring employers to include pay ranges, however, the conversation is shifting.
Today, even employers who aren’t required to include salary ranges in job postings often do so. Many more are changing their pay secrecy policies after seeing the benefits of pay disclosure.
Trends Toward Including Pay Rates in Job Postings
In 2023, New York City became the latest North American metropolis to require employers to include a pay range in their job postings. Yet even employers who aren’t required by local rules to include pay have begun doing so.
Currently, about 17 percent of US companies that aren’t required to disclose pay ranges nonetheless do so, according to the Consultancy WTW 2022 Pay Clarity Survey. Even more are interested in doing so: 62 percent of responding companies said they were planning to disclose pay rates or were thinking of doing so. In Canada, salary transparency is not the standard practice. However, some provinces are moving towards implementing legislation that requires salaries to be included in job postings.
Benefits of Including Pay Rates in Job Postings
When companies include pay ranges in their job postings:
- They attract more candidates. Companies that publish pay ranges see an uptick in applications from qualified candidates. Candidates are more likely to apply to jobs that discuss pay up front. They’re also more likely to accept an interview offer when they have an understanding of the pay range.
- They boost engagement within their existing workforce. Pay transparency raises trust among existing work teams, boosting engagement and encouraging employee retention.
- Adjusting to add pay ranges gives payroll teams a necessary refresh and audit. About 30 percent of US companies say their payroll teams aren’t ready to disclose pay info. Addressing pay transparency gives companies an opportunity to ensure their payroll procedures work efficiently.
- Pay ranges work as well as specific numbers. Companies that wish to calibrate pay more closely to candidates’ skills and experience don’t have to lock themselves into a specific number. Research indicates that communicating a starting range can be as effective as sharing a specific number.
Need More Information? Reach Out to EPC Today!
Need help crafting a job posting that attracts promising candidates? Talk to the team at Employment Professionals Canada today. We’ll help you ensure that your job postings accurately depict the demands of the role, highlight the benefits of joining your team, and communicate your employment brand. Contact us today to learn more.
