At some point in the process of hiring someone, money is going to be discussed. What many are unsure of is this: when exactly is the best moment to raise the subject of salary?
There’s no correct answer as it will often depend on personal preferences. Some employers prefer to get it out in the open straight away while others prefer to wait until the interview process.
And whilst there is no right or wrong when choosing to disclose the salary you’re offering, there are certain factors that can affect your recruitment interests.
Deciding whether or not to advertise your pay range is an important one and will have a large impact. It is always better to consider the pros and cons before making a decision.
Have a look at the following pointers:
#1: For better or for worse, advertising a salary range will have a direct effect on the number of applicants you receive
By including your pay range in an advert, you’ll probably increase the number of potential hires. According to some sources, there are 30% more applicants when salary is shown. Word of mouth can also work in your favour when others see your advert with the salary and recommend the opening to friends or colleagues.
Further, having more applicants means you’ll have more candidates to choose from; this means you are more likely to find a better hire.
Also, imagine that you’ve narrowed down the applicants to your favourite few and now decide to discuss remuneration. You wouldn’t want to meet the perfect hire – and find out they’re not be interested at the last moment because they have only just learnt about what pay is on offer.
On the other hand, people may see your advert and apply for the job in the hope of earning a more appealing salary. Unfortunately, they may not be qualified for the job but have the ‘you never know’ or ‘what’s the harm in trying?’ attitude to life.
While it was always motivating to receive a lot of applicants, by having too many you’re likely to spend (or even waste) a lot of time sifting through CVs. This is time that could be better spent on more pressing areas of your business.
#2: Revealing a pay range might lay down unrealistic expectations
When you choose to display the salary, it’s because you have a rough idea of what you are hoping for.
While this tip might seem obvious, consider the scenario in which you mention a salary range ‘related to relevant qualifications and experience’ but your applicants don’t reach the standards you expect.
Potential hires can wrongly consider themselves more-than-qualified for the position and assume they’re going to receive the higher-end of your scale. In such a case, when the actual moment comes to discuss remuneration, the applicant may not appreciate being offered the lower end of the scale offer and could walk away.
If they hadn’t seen the salary range, you might have avoided this situation.
#3: Present staff may feel disgruntled when seeing salaries being advertised
Your team might well become irritated if the ‘newbie’ in the office is being offered more than they are on.
You are probably able to demonstrate any reasons for the difference in pay but your current staff might be too blinded by the unintended ‘insult’ to listen.
#4: Displaying a salary could tip-off your rivals
By allowing potential hires to see the salary, you’re also allowing competing companies on the Island to do the same. Standard market research includes finding out the pay range for rival companies so you are pretty much doing the homework for them.
Your competitor could put in a very similar advert and offer a very small amount more in their package – this might be enough for some candidates not to apply for your job.
#5: Salary disclosure is the new fashion
We’d never hear of our grandparents talking about their earnings, and probably not even our parents.
But the next generation coming through are 40% more likely to discuss salaries, according to Jenifer Deal in What Millennials Want From Work.
Talking about what we earn will become the norm, so by not advertising the salary are we just fighting the unavoidable?
In short, don’t rush your decision.Wage transparency is a hot topic. Think about the advantages and disadvantages of both options and you’ll find what works for your organisation.
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