10 Top Reasons Employers Should Provide the Salary Range in Job Ads

I’ve previously written about what working professionals should do to get a good job: tailoring their resume to the role, revamping their LinkedIn profile, and getting in with good recruiters as good starting points. That done, I’m turning the spotlight over to the other side of the table. Getting a good job means working for a good company, and corporate America’s performance in that regard lags pathetically behind that of almost every other developed nation.

The easiest way to tell whether a company truly values employee well-being? Putting a salary range in the job ads they post.

This is a ridiculously simple way to show respect up front for future prospective candidates. This also shows respect towards current employees, so that they will consistently have a reference to understand their own compensation packages are not negatively affected by discrimination in the workplace.

However, since that has yet to be common practice (unless a law specifically demands it so) the default for most employers is to simply leave that off of their job ads. This is done under the assumption that refusing salary range transparency from the start gives the employer more negotiating power; employees tend to underestimate appropriate compensation, so withholding the salary range seems good for saving money on labor. Another assumption is that it also helps weed out top performing candidates from those only interested in the pay.

As it turns out, neither assumption is true.

The greatest unicorn employees alive – the ones every workplace is desperate to have, as veritable wizards who seem to make every department run smoothly – are also the ones who will be most put off by an employer’s refusal to be upfront with pay. As for the positive impact on labor costs, I’ll quote this fascinating study analyzing the impact of pay transparency after Colorado enforced it by law.

In labor markets, pay transparency within a firm has been shown to lead to lower wages, as firms can credibly reject renegotiations when wages become transparent.

Riveting example, that, of employers spending a dollar to save a dime.

Because companies neither respect for job applicants nor for good faith labor cost analysis, I looked at all the other reasons why employers should seriously put the salary range of a job into the ads posted. Then, I curated the top ten reasons why posting the salary range for open positions benefits the employer much more than leaving it off. For job applicants, use this list to understand why you deserve to know the salary range of a job before you apply.

1. Providing a salary range automatically curates better candidates.

Every employer wants employees that make their work a point of pride. They want high achievers who positively impact both their colleagues and their profit margins with cheerful aplomb. The best way to nab them is to show them they want to work there. Humans like stability; when looking at job ads from two rival companies, the one that projects more confidence is the one telling them what they’ll invest in them right out of the gate. A lack of a salary range projects insecurity, like a company is unsure what to place. Not having a salary range means sending candidates you’d hire in a heartbeat into the arms of rivals who will benefit from your shortsighted ways.

2. A salary range makes an excellent first impression while removing a job search stressor

Every business school worth their salt teaches the importance of first impressions. In today’s digital world, the first impression of an employer’s workplace an applicant likely gets is via the job ads posted; not only must the job ad list the tasks and responsibilities of the role, but to also make it sound like a good opportunity instead of negative drudgery. What better, simpler way to make a first impression than by adding one line your HR and finance departments already know? Adding this single details goes a long way in building esteem for would-be employees.

3. A salary range positions you above the competition

I touched on this before, but it bears repeating. In the last decade, an eye-watering 86% of job seekers are already employed. Those dedicating quality time and resources to the job hunt are forced to prioritize the most exciting work opportunities. Say they find two near-identical job ads from two competing corporations. Which one will their choose to prioritize over the other: the one too lazy to specify what “competitive salary” means, or the one who freely provides that salary range? Overwhelmingly, the job seeker will prioritize applying for the latter.

4. A salary range projects company values of honesty, integrity, and accountability

Do you want to work for a business destined for a news circus over fraud or embezzlement charges? Me neither! I’m not saying a salary range in posted job ads guarantee all the finances are above board, but it sure does signal an employer’s comfort with payroll funding and overall business expenses.

5. A salary range streamlines the interview process, filling roles more efficiently

Salary negotiations are a frequent pain point during the interview process. When a top candidate finds out the salary is too low for their expectations or needs, they will either request further discussion or walk away entirely. The very first step to take, according to most experts, is to ask for more time. When a candidate knows the salary range from the very beginning, these negotiations can wrap up several days ahead of projections. The sooner a star candidate can become a stay employee, the sooner the company reaps the benefits.

6. A salary range increases employee retention rates

Gallup has announced that voluntary employee turnover costs US businesses a collective $1 trillion, per year. Measuring by an employee’s salary, a company is comparatively lucky if they “only” lose 50% of a former employee’s salary to the costs of recruiting, hiring, and onboarding someone new. When a top reason employees leave is inadequate compensation, it’s pay transparency that convinces current employees to stay on. Employees that can compare their own salaries to job ad data points of their employer can see equitable treatment; this can increase job satisfaction and happiness, dramatically lowering their looking elsewhere.

7. A salary range improves and standardizes HR productivity

The role of a good HR department is to protect the company from legal grievances and employer-employee disputes. The biggest oversight many HR teams face is unconscious bias in the workplace affecting salary rates. Pay discrimination, when proven by the US Equal Employment Opportunity Commission, is a great way for companies to lose millions in court fees, fines, and other serious consequences. Putting the salary range in a job ad means ensuring similar roles in the company will have similar compensation benefits. This makes it much harder to argue that a company is discriminating against an employee of a protected class.

8. A salary range filters out (some) problem candidates

Posting the salary range in a job ad will not magically remove all candidates who would be the wrong fit. What it WILL do is automatically filter out candidates who are looking to get top dollar for their employment, regardless of their true impact to a company’s bottom line. I believe it’s these candidates companies try to avoid the most with the current standard of “no salary range,” when it’s actually the opposite that will effectively drive them away.

9. A salary range makes AI tools run more efficiently

I’m not just adding this line item to be cute. With AI making a splash in every industry, no employer should seek to limit AI applications. AI’s very first impacts in the workplace came via assistance during the interview process, after all. However, major news outlets like the BBC note AI has an unfortunate tendency to filter out the most qualified candidates in the selection process. “It’s important to get the tech right,” the article notes, a task made easier when a job ad is attracting more qualified candidates over problematic ones. The salary range does just that, with the added bonus of qualified candidates trending towards having more insights into other AI tools.

10. A salary range improves profit twofold via long-term cost of labor and higher productivity

I already discussed the cost of labor savings in the introduction of this article. The higher productivity comes about thanks to a vastly improves employer-employee relationship, with a foundation built on mutual trust and respect. Employees that feel valued since Day 1 are the employees that work the hardest to return the favor. That trust in a company’s mission is what sends top companies into the stratosphere for excellent returns on their investments. That all can start with adding “Salary range: $X-$X” in one measly job ad.

Did I miss other top reasons why employers should definitely include the salary range in job ads? Let me know in the comments or a direct email!

Cover image credit: Yasmina H via Unsplash