Benefits of Including Salary Bands in Job Ads

Drake Editorial

Given the record low unemployment rate and a talent shortage across multiple industries and job roles, our research has confirmed that the inclusion of salary bands is one of the most critical inclusions in a job post.

Benefits of Including Salary Bands in Job Ads

Recent data from one of the leading Australian job boards shared some research showcasing the importance of including salaries in jobs ads:

• On average, 70% candidates look for the salary band in a job ad
• 25% candidates won’t apply if they don’t see the salary band
• Most applicants today filter their job advert searches based on position and salary meaning that you may not appear in their search results if salary isn’t included

There are other benefits of posting ads with a salary band, including some with wide-ranging consequences.  The most compelling is closing the pay gap and achieving greater equality through consistency with pay.

An increasing body of research shows that companies who are forthcoming about their wages attract better and more diverse talent, which makes salary transparency a way of creating a more equitable workplace.

Figures show when there is no advertised pay range, men are more likely to be assertive when it comes to salary negotiations. When both male and female candidates start negotiations with equal access to salary information, it’s likely to result in fairer outcomes based on merit.

Interestingly, there are new laws in the US coming into effect in 2023 which make it mandatory for employers with more than 15 employees to post salary ranges in all job ads. The law has been designed to address unequal pay for women and minority groups.

Our own survey which asked the question “Should business include the salary range in job ads?” found that 90% of people agree salary should be included in a job post.

Despite all the benefits of posting job ads with a salary range, what are some of the possible reasons for hesitancy?

Firstly, employers may see disclosing salary as reducing their lack of flexibility in wage negotiations. Many applicants will automatically expect to receive the figure at the top of the salary range, even if that figure is only reserved for the most qualified candidates.

Some employers may not want to reveal pay scales to competitors, which could undermine their Employee Value Proposition (EVP), making it easier for competitors to poach employees with higher salary offers.

Employers are also conscious of existing staff. If new staff begin on the same or even higher rates, this could lead to unwanted attrition if pay reviews are not part of HR’s regular process.

Ultimately, we are in a competitive job market and today’s candidates value companies who are upfront and transparent. The lack of a salary band in job ads is certainly a deterrent to candidates applying, and the benefits of doing so far outweigh any of the negatives, including greater equality and a more inclusive recruitment approach.