Historically, salary information has been a closely guarded secret. But like so much in the world in recent years, that picture has changed dramatically. Pay transparency has been steadily gaining momentum and is, in fact, the law in a growing number of states and municipalities. So, like it or not, it’s here to stay.
As an employer, it behooves you to be aware of the facts around salary transparency, how it affects your business, and why coming to terms with it can be a benefit as you advertise your open jobs, source desired talent, and retain your top performers.
Transparency = Trust
As reported by the Society for Human Resource Management (SHRM), 91 percent of employees who believe their companies are transparent about how pay decisions are made also said they trust that their employers pay people equitably, regardless of their gender, race or ethnicity.
Salary transparency puts more cards on the table as candidates decide where to apply for jobs and current team members solidify their long-term loyalty to your organization. It all comes down to trust and building a stronger workplace culture – both highly attractive features in talent recruitment and retention.
Additional studies provide similar results; namely, one in six employers saw a rise in applications after implementing pay transparency initiatives that disclosed salaries in job postings.
In research conducted by Indeed, 80 percent of people said being paid fairly was a top consideration when considering accepting a new job and 67 percent said they considered salary information the most important component of a job description.
- Indeed is committed to accelerating the pace of pay transparency by prominently featuring salary ranges provided by employers or, if a company does not offer this information, by providing estimates based on similar titles and locations.
Make Better Business Decisions
In addition to strengthening your company culture and building a foundation of trust, salary transparency benefits your company as it encourages smarter compensation planning. Pay transparency encourages businesses to develop more competitive compensation strategies that also serve to eliminate inequalities and define different pay ranges. This can give your HR department greater clarity when making hiring and promotion decisions.
- Managers share details about potential pay increases with candidates during the hiring process. Knowledge of a clear path to advancement is a powerful toll in retaining your best current team members.
- Your employer brand will also benefit. Beyond Indeed and similar platforms, word will spread about your company’s commitment to trust, transparency, fairness, and respectful treatment of current and potential employees. This enhances your image and ultimately helps solidify your strong position as your vie for talent in today’s highly competitive marketplace.
For additional insight on salary transparency and guidance in all areas of your job advertising and other recruitment marketing strategies, reach out to Haley Marketing today.
