Glen Callum Associates (GCA) is pointing to the benefits of being open when it comes to salary, despite, it believes, many employers having a slight uncertainty around salary transparency.
While it is not a legal requirement, over the past few years, salary transparency seems to have become a growing trend, with many companies opting to include the salary range when advertising vacancies.
This, in part, could be down to younger workers demanding transparency. Research by Adobe found that 85% of upcoming and recent graduates are less likely to apply for a job if the salary is not disclosed.
Furthermore, last year, the government announced that it will be launching a voluntary pay transparency scheme, encouraging companies to display salaries in all of their job ads to help close the gender pay gap.
GCA Director, Kerrie Richards, explained: “Salary transparency is not necessarily a new trend, or one that is solely being directed by Gen Z. If you look at the statistics from various job boards, pretty much all will say that advertising without a salary will vastly reduce your application rate, regardless of age.
“While we appreciate the reasoning behind not wanting to advertise a salary, there are plenty of benefits of being more transparent.”
GCA advised that by leaving out a salary in a job advert, companies could be missing out on top talent.
For example, a study, published by Reed.co.uk, found that 54% of women feel uncomfortable talking about salary at the interview stage, meaning if this information is available before they apply, the expectations are already clear, making the conversation easier.
GCA believes it also helps to attract a more diverse workforce, as there is a “fairer chance” for those who may not be at ease discussing their own salary expectations. It can save companies who are recruiting valuable time and effort, as it removes the chance of beginning a process with a candidate whose salary expectations do not align with the advertised job role.
What’s more, embracing salary transparency can build trust among employees, strengthening relationships and reaffirming company culture. It helps managers to have conversations around career development, while providing clear expectations. Kerrie added: “Not all companies will adopt this trend overnight, and understandably so. However, the conversation is definitely shifting and, therefore, we advise companies that before making the decision to include, or not to include, a salary in the advert, perhaps consider their pay data. Quite often, they may find that they offer a competitive advantage in the industry.
“It’s about finding a balance between what works for a business, and what works for their employees.”
