In a LinkedIn December 2022 survey, 91 per cent of the respondents based in the US said that including salary ranges in a job post would impact their decision in applying for a role.
This finding was consistent across industries and seniority levels. Salary clarity allows applicants to tailor their search and form a good idea of their growth potential, while recruiters can focus on the most viable candidates.
Despite this, many companies are not adding pay ranges to job ads, stemming from fear that it may lead to discontent in their current workforce. It may also be due to a lack of confidence in their pay structures or in the maintenance of pay equity within the company.
There is no one answer to how pay transparency will affect the future of hiring, as the impact will vary depending on organisation and industry.
Pay transparency can be an effective tool in addressing challenges in talent attraction and retention, but it is not a comprehensive solution on its own. It is also important to remember that employees may decide to leave a company for non-quantifiable reasons, such as better career development and progression opportunities.
With increased competition for talent, business leaders must work together with HR to adopt and implement progressive policies to keep top talent with the organisation.
Aslam Sardar is Chief Executive Officer, Institute for Human Resource Professionals (IHRP). Dr Fermin Diez is an IHRP Master Professional and until recently the Deputy CEO and Group Director of Sector Capability and Transformation at the National Council of Social Service (NCSS). Carmen Wee is an IHRP Master Professional and Founder and CEO, Carmen Wee & Associates.