Hiring? 5 reasons why you should include a salary in your job post

When it comes to the question of salary, many employers prefer not to disclose salaries in their job postings. Some typical reasons include:

-Flexibility to lead salary negotiations
-Prevent competition from knowing the salary range offered
-Attract more applicants with varying levels of experience

Although this has been a traditional approach, the tight job market and employee shortages call for employers to find more competitive ways to attract quality applicants.
Including salary information in your job posting is one such attraction tool. In fact, a study by LinkedIn which aimed to find what elements of a job advertisement resonated most with job seekers found that “the salary range was the most highlighted portion of the job description.”

Here are 5 reasons why employers should include the right salaries/ salary range in their job postings:

Quicker turnaround:

Salary information is one of the critical decision factors when applicants are considering applying for a role. By sharing this information up front in the job description, employers can save a great deal of time and energy for both, their internal HR team as well as the potential job applicant. Too many recruiters spend time and resources conducting extensive interviews only to find out that the salary range is not compatible with the candidate’s expectations. Revealing the salary range in the job posting means only applicants comfortable with the salary/salary range may apply, saving you time and hiring costs.

Right Salary drives the right candidate:

As an employer, it is imperative to know what salary range should be offered for a particular role based on expected skillset and experience. After all, you would not want to offer less than market value and lose a good candidate or pay more for an average candidate. Paying the right salary ensures you are hiring a talented applicant who is content with the remuneration and is more likely to sign onboard.

Drive retention:

A CNBC report released in 2021 revealed that 1 out of 4 employees quit their jobs because of salary. It is common knowledge that retaining a highly skilled employee by paying an up to scale salary is less expensive than hiring a new one.

Knowing and including the right salary range in your job postings ensures not just hiring the right candidate but also retaining the newly hired team member for the long term. Salaries are the top drivers to make employees feel content with their job. Employers who are knowledgeable about the trending salary ranges are likely to experience less attrition and employee turnover.

Transparency:

Employee mindsets are evolving as they are looking for employers who are transparent with their hiring practices, especially with salaries. Many applicants do not even apply for jobs that do not have a listed salary or salary range. Job market trends suggest that millennials in particular are very open about their compensation. Most employees believe that if a company is not listing a salary, it is because they may be trying to underpay, which may not be true.

Further Ben Howes, Area Sales Manager at CareerBuilder reports that salary is the number one search filter after position title. More than ever before candidates are choosing which roles to apply for based on salary and are more likely to apply for a job that has the salary included in the job posting. Not mentioning salary may result in a potential candidate not seeing your job in their search.

Improved bottom line:

Knowing the right salaries can help you to budget for future personnel expenditures. It can also help you allocate and plan remunerations for new hires depending on what are the most important skills your business currently needs. In addition, as mentioned earlier, knowing and paying the right salary helps to avoid attrition/turnover and the associated costs of recruiting, hiring, and training.

According to the Financial Post, a recent Harris Poll reported employee turnover costs companies in Canada an average of $22,279 in recruiting costs and lost productivity, with 18% saying it costs their company $50,000 or more per year. The larger the company the higher the cost as 35% of large companies with 100+ employees say it costs them $50,000 or more per year. Looking for tactics to improve your retention? Download Agilus’ Retention Guide here.

Including the salary or range in your job description is necessary for credibility, expediency, and optimal candidate attraction. Employers trust Agilus to know the right salary scale for diverse roles based on experience and geographical location. To get this information, right when you are ready to hire, request our free Salary Guide.

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