Job salary and the 10 reasons why the company should NOT hide it! Discover the importance of a clear salary policy.
So, have you ever thought about which talents you are losing to your company just by hiding the salary range?
With this in mind, we’ve decided to show you 10 reasons why you shouldn’t hide your salary. We recommend that you read our content to the end so as not to miss any details. We wish you a great read.
What we will see in this article
What is the Job Salary?
The salary for the position is the amount the company is willing to pay for the services of someone who takes on this professional role.
The salary also makes it clear what the company’s policy is on paying above or below the market average, which is important if you want to know a little about the company’s situation or its salary culture.
How important is it to put the salary on the vacancy?
Putting the salary on the vacancy is a matter of transparency.
Some selection processes can last hours or days and, if they put the salary before everything else, the professional will already have an idea of whether that amount will cover their personal expenses or not.
Nor will you have to travel to the company, spend hours there and then discover that the salary is incompatible, perhaps even with the market.
Of course, it’s not just the salary that will make a professional decide to apply, but it’s essential for them to know if this amount will provide the minimum support for their personal needs.
What is the main reason for putting a salary on the job?
76% of professionals research the salary range before applying for a jobIneed
A survey conducted by Indeed showed that 76% of professionals research the salary range before applying for a job. This means that almost 80% of employees consider this to be important information.
In this way, we can understand that not having this information ends up driving many talented people away from your company. Imagine a well-qualified and experienced professional who can deliver a lot of results for your company, but they give up just because of this important piece of information.
Hiding the salary scares off good candidates
In addition, there are cases where the most interested employees call the company to ask this important question. Unfortunately, most recruiters still don’t mention the salary range, which somewhat tarnishes these employees’ prospects for the company.
It’s not absurd to say that these qualified professionals will never work for your company. After all, they know they are important to the market and creating an initial barrier for these talents can be discouraging.
The same survey indicated that almost half of employees don’t believe that their salary range is equivalent to their workload. Naturally, these better-qualified professionals will look for companies that really value their contributions.
Putting the salary of the vacancy will attract ideal professionals for your company
Imagine that all the requirements for the job are actually a funnel for finding the best professional to fill it. In this way, an employee who works in the marketing sector will never apply for a position in a restaurant.
In other words, information such as experience, technical knowledge, skills and other information are actually guides to the most suitable professionals for the job.
However, what many companies haven’t realized is that the salary of the position is also one of these requirements. For example, a professional who has a degree and no experience will never apply for a management position.
However, an experienced manager can compare your current salary with what is available in the position. This way, he can consider having an improvement in his salary range. Without this information, that manager wouldn’t even consider changing jobs and applying.
When the salary for the position is set, the rules are already clear
What’s more, if the vacancy states that the salary will be “X”, the candidate is unlikely to be interested in asking for more than that. Since you have already been placed in the vacancy, you only attract professionals who are interested in that salary range.
Realize that there were negative points for putting in such essential information. According to our example, you would only attract professionals who are aligned with the vacancy.
Salary: The competition won’t use this information against you
Companies compete to attract the best customers, professionals and managers in order to stand out from the competition. However, the salary range will not be one of those items that can be used to get ahead of you.
As we talked about in our content on job descriptions. If a company can’t pay its employees according to their duties and knowledge, it won’t have that employee. This perspective works in the same way for professionals.
For example, imagine that you advertise a vacancy where the salary range is R$1,300.00. Your competitor will only pay more if she can. First of all, the competition will check whether it can afford it and not simply increase it.
What’s more, if the competition can pay that amount, they will already pay that amount to their employees. Everyone in any market knows that this is important information and therefore pays a fair price according to their own view.
That way, companies that are offering a higher salary range than yours are already offering it, regardless of whether you disclose the information or not. In addition, as we said in the previous topic, you will attract the most suitable employees for the job.
Considering this, an employee who thinks they have the profile, technical knowledge and experience for the value you are offering will apply.
In this way, you ensure that talent enters your company and develops with it. After all, if this is your reality at the moment, you have to deal with its advantages.
There is no need for confidentiality
Many companies believe that they need to keep this information to preserve confidentiality. However, they forget that this is not really confidential information. After all, anyone can research the average salary for a position.
In July of this year, the @FestadaFirma profile ran a poll with more than 20,000 votes, showing that 96% of the people who voted would consider running for office if the information was made public.
This goes to show that people prefer transparency rather than confidentiality. Obviously, each company cannot divulge its strategic data, but information such as the salary of the vacancy is easily found.
It is possible to increase the requirements for candidates
Many companies don’t disclose the salary range to prevent professionals who are only interested in the salary from applying. However, this can also be easily avoided by adding more requirements to the position and still disclosing the salary range.
For example, suppose you advertise the position of administrative assistant with a salary of R$2,500.00. Obviously, this salary is going to catch many people’s attention, but then they also realize the requirements to apply for the position.
Despite the salary, one of the requirements is that the professional has a specific technical or vocational course for administrative assistant. You must also have experience of the Office package and corporate routines.
In this way, you can keep out many of those who are only interested in the salary. After all, they’re not just going to do a technical course and get the experience they want during the period the position is open.
With this in mind, you’ll be able to really attract the best professionals for your job. However, it would not be possible to offer these same requirements without the presence of a clear salary for candidates.
Salary of a vacancy in line with candidates’ expectations
Once you add more requirements to the vacancy as we talked about in the previous topic, this will align the expectations of the candidates. Many companies are afraid of not attracting candidates who have a higher salary expectation.
However, this alignment of expectations is essential for bringing in the best candidates. After all, the professionals who apply for the job are already aware of the value. However, some employees won’t want the job at first, and that’s normal.
That way, they’ll search for other vacancies and if they don’t have the salary of your vacancy, it’s likely that the candidate will come back to your still open vacancy and be a candidate. After all, if they haven’t found anyone else and your position is open, it means that their expectations are above the market.
In addition, regardless of whether you have a salary range or not, vacancies will repel some candidates. Often for the requirements and that’s fine. Your company doesn’t want to hire every employee, but it does want the best and most suitable ones for the job.
Salary of a vacancy does not create internal conflicts in the company
Many companies don’t disclose the salary range so as not to create internal conflicts within the company. For example, an employee who has been with the company for years knows the salary range that their new colleague has. However, this is not a problem, but a warning.
Realize that this actually highlights a possible problem with your company’s emotional intelligence. As an essential soft skill for today’s working environments, having this deficiency can be easily solved with training, lectures and other ways.
What’s more, if you think that this could lead to conflict in your company, it’s possible that other conflicts already exist because of this lack of emotional intelligence.
In this way, we can conclude that the disclosure of the salary range does not create internal conflicts, but rather a lack of emotional intelligence. What’s more, if there is a difference between salaries, there must be a plausible reason for this, whether it’s more duties or more knowledge.
Salary for a vacancy and vita negotiations during the interview
One of the experiences that recruiters need is to negotiate salary during the interview. Often it’s not exactly the salary of the position, but all the bonuses that the position has, such as food vouchers, transportation and so on.
This way, with the salary range already guaranteed, the number of candidates looking to negotiate salary will decrease or drop to zero. After all, negotiations exist only because there is blank information about the salary.
With the establishment of this more transparent relationship, it is unlikely that a candidate will ask for more or less. After all, he came in as a candidate knowing all the information before the interview. This creates an immediate bond of trust between the company and the employee.
We’re not saying that negotiations are bad. However, they must be dosed according to the situation. For example, imagine that an employee joined the company knowing the salary range and after a year asked for a promotion.
In this way, it is possible to establish a win-win situation. However, in the interview it is still very unclear what information is available about the candidate’s work.
The salary of a vacancy sends important information to the company
Often having the salary range disclosed sends important information to the company. The information is how much that position is valued in the job market. For example, imagine two scenarios where one you don’t disclose and the other you disclose the salary range.
The first is where you advertise, you have to choose the candidates according to the requirements, interview them according to their salary requirements and then you have your employee. Note that you didn’t get any exact information.
Anyone can send in their CV and a salary claim based on the market. However, when you disclose the salary range, you can find out what needs to change in that position.
For example, imagine that you advertised a vacancy with a salary range and absolutely no one suitable sent in their CV. So this is actually a signal for certain details in the vacancy to change.
For example, increasing or decreasing the salary of the position, requirements, education and so on.
However, if a lot of people have applied for that position, you need to adjust the information. Putting in more requirements, adding more functions until you find a perfect balance between the demand for that vacancy and the company’s offer.
A vacancy salary puts your company ahead of the competition
To conclude our content, based on all the 10 reasons we’ve shown, showing the salary range makes your company stand out from the competition. After all, as we have shown through surveys, the main contributors think this is important information.
This way, once you publicize something that professionals want and your competitors don’t, it puts your company ahead of them.
After all, it not only shows the information that candidates want, but also demonstrates transparency, which is essential for any relationship of trust and professional ethics.
Another point that puts your company ahead of the competition is advertising. After all, since it shows the salary range, it attracts a lot of people. It’s much easier for someone to share your vacancy in a group on the subject or with a relative than a vacancy without a salary range.
With this in mind, the company works very well on its internal marketing or endomarketing for its employees and future professionals. Making the environment one of satisfaction, trust and a paradigm shift compared to the culture of other companies.
Did you like our article on 10 reasons not to hide your salary? Then comment below with your opinion and if you have any questions about our content.