How Important is Pay Transparency?
Let's dive in and check the data.
Did you know that...
91% of US job seekers say salary ranges influence their decision to apply for a job (LinkedIn Talent Blog).
When a person is looking for a job, the pay is probably one of the most important pieces of information to them. They need to know right off the bat if your pay is enough to fill their financial needs. By providing that information up front, the applicant will know if it's worth their time to apply for the job, saving you and the candidate time.
Employees who believe their pay is fair are 15% more likely to stay at their job (LinkedIn Talent Blog).
Openly sharing your pay ranges in job ads provides pay transparency and builds trust that your organization pays people fairly. Not only does this transparency show your employees that they're being paid fairly, which boosts morale, but it also keeps companies in check... leading to pay equity and closing the gender pay gap.
85% of job seekers won't even apply for a job if the pay isn't listed (Adobe).
If you choose to just keep the pay completely out of your job ad, 85% of job seekers won't even bother to apply! Think of all the talent you could miss just because you left the pay information out. Make sure you are including at least a pay range if you're not comfortable putting an exact dollar amount, this will lead to more applications flowing in.
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Pay transparency is becoming the law
Pay transparency laws are rules that make employers share details about what employees get paid. The exact rules can vary depending on where you are, but the ultimate goal is to make things fairer and cut down on pay differences related to gender, race, or ethnicity. These laws mean that companies have to be more open about salary ranges and benefits. (AI 2024)
There are currently 9 states with pay transparency laws.
The importance of pay transparency is catching on
- 62% of employers now include salary ranges in job ads - an 8.3% increase from 2022
- As of Sept 2023, 27% of U.S. job postings on Indeed include pay information
- Pay transparency laws now cover an estimated 20% of U.S. workers
The numbers don't lie... pay transparency is critical for your hiring. Salary transparency attracts more applicants, improves retention, and is becoming the norm. Don't get left behind... make sure you start including the pay in your job ads to attract more applicants!
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