9/19/2023 0 Comments Ifactor glassdoor![]() ![]() Some companies also fear that if they list a salary band, all applicants will expect to receive the figure at the top end of that range, even if that figure is only reserved for the most qualified candidates. For example, securing additional information about a prospective employee’s physical location – be it a low-cost rural area or high-cost urban centre – might be a key factor in determining compensation, and ultimately can enable employers to save money. Many employers also withhold salary information to give them more negotiation leverage with potential candidates as they advance to latter stages in a recruitment process – particularly as more jobs go remote. ![]() “If you keep compensation private, in a way, it protects the employer and also allows the employer greater discretion.” ![]() “The other thing, of course, is when you make compensation public it makes it easier for the competition to poach your employees,” adds Ng, noting they can use this information to compete for – and potentially win over – the best candidates. In certain labour markets, employers may have to pay higher salaries to attract the best talent, which could cause conflict internally if existing employees – particularly ones who started at a lower wage – could easily view that information. In an ideal world, everyone doing the same job would make the same amount of money when they start. “Employers don’t want to publicise how much they pay, in part, because it’s going to create resentment among organisational members,” explains Eddy Ng, the Smith Professor of Equity and Inclusion in Business at Queen’s University, Canada. Several reasons help explain why only 12.6% of global companies published the pay range for a role within their job ads last year, according to a 2021 report from Seattle-based compensation data company Payscale. That’s because an increasing body of research shows that companies who are forthcoming about their wages can attract better, more diverse talent, making salary transparency an actionable way of creating a more equitable workplace. Yet, there’s a growing global movement to make salary transparency not only a new norm, but rather the law. Nevertheless, many employers still leave out compensation details in adverts, often out of fear it may put them at a competitive disadvantage, or cause resentment among existing staff. A Glassdoor study showed similar results, with salary (67%) being the top factor jobseekers look for in ads. This chimes with data from a 2018 LinkedIn survey, in which the overwhelming majority of respondents (61%) said compensation was the most important part of the job description. It also streamlines conversations later in the hiring process. Knowing the expected salary upfront lets a candidate understand whether a job will be financially viable for them. “In traditional corporate environments, the salary is often hidden because it’s a game of cat and mouse trying to figure out what salary the candidate is currently on, what they’re expecting, and what the company is willing to pay,” explains Tom Harmsworth, the UK managing director at property-technology company WeMaintain, which operates in the UK, France and Singapore.īut this lack of disclosure hurts workers. What do those words even mean? And why don’t companies simply list the salary upfront? Then, when you get to the part about the expected salary, you find that instead of an actual figure there are phrases like “depending on experience” or simply “competitive”. ![]() The description is inspiring, the team members look compatible and you meet most of the qualifications for the role. You’re scrolling through LinkedIn when you come across a promising job ad. ![]()
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