In the past, most employers avoided including salary or a salary range in their job postings. That was the standard with a few exceptions. However, today, the pendulum is swinging the other way with more and more companies advertising salary in their job postings and being more transparent about salary with their employees.
In some cases, it’s due to legislation. In others, though, it’s because being open about salary actually offers companies several advantages. These include:
Why is Salary Transparency Important?
Attracting the right-fit candidates.
When you include salary in a job posting, you’re sending the message that you’re a transparent and honest about details. You’ll likely attract better quality talent. Meanwhile, you’ll avoid wasting time on those who aren’t a good fit in terms of salary. If the range isn’t even close to what they’d expect, they can self-filter out, making the job of hiring easier for you.
Improving on-the-job satisfaction.
Being open about pay ensures that salary structures are fair without a gender gap. Having a more equitable environment in terms of pay is important because it leads to higher levels of job satisfaction. In addition, employees are not left to wonder about your company’s pay structure when compared to market standards.
Avoiding discrimination.
Companies can discriminate when it comes to pay – even unconsciously. This includes with gender, religion, ethnicity, sexual orientation, or anything else. However, when you strive to keep salary transparent, it’s easier to ensure pay is always fair and based on the job and the individual’s experience, no matter who is in the role.
Retaining top employees.
When people know what they are paid and why, it leads to happier, healthier teams. Your people know there’s room for upward mobility in terms of both responsibility and salary. This can help better retain your top performers and motivate them to continue delivering high quality work and gaining new skills, so they can eventually earn more.
Boosting company performance.
Transparency with salary has a big impact on employees. But it also offers a boost to companies as well in the form of productivity. When people know they’re being paid fairly, or offered a job with competitive compensation, it leads to more productivity on teams and a potentially higher profit. It’s a win-win.
Let Future Force help with salary transparency and equity.
Pay equity is a good thing for employers and companies alike. If you need help ensuring your salaries are fair and competitive, Future Force can help. We can perform the research and provide you with insight about market rate salaries, as well as work with you to ensure your job postings are making attractive offers. Contact our staffing agency, serving the Orlando, FL, area to learn more.
