Show Them the Money: How Including Salary in Job Ads Can Help Build a More Diverse Workforce
Do you include salary information in your job adverts? What are the reasons you’ve chosen to include or exclude the pay range when advertising? While you might be hesitant to include salary information in your job postings, here are 8 compelling reasons why this can be a smart move:
- Attracting more socio-economic diverse candidates: Candidates from different socioeconomic backgrounds may have different salary expectations and requirements. By including the salary in the job advert, candidates can quickly and easily assess whether the position aligns with their financial goals, which can help to attract candidates from a wider range of backgrounds.
- Mitigating unconscious bias: Research has shown that unconscious bias can impact hiring decisions, particularly with regard to salary. By including the salary in the job advert, employers can start to mitigate these biases and ensure that candidates are evaluated based on their qualifications and fit for the position, rather than factors like their gender or ethnicity. (To learn more check out our Unconscious Bias training course)
- Fairness & Equity: Including the salary in the job advert can demonstrate to candidates that your company values transparency and fairness in its hiring practices. It allows candidates to know exactly what they will be paid if they are hired. Transparency and honesty can only improve your employer brand.
- Addressing the Pay Gap: Research has shown that when salary information is not disclosed, women and minority candidates may be more likely to receive lower pay than their white, male counterparts. By providing clear salary bands in job adverts, employers can help to ensure that all candidates are aware of the salary range for the position, and that pay equity is more likely to be achieved.
- Saving Time: By including salary information in your job advert, you can avoid wasting your time on candidates who are not interested in the salary range you are offering. It also saves your candidates time applying for roles that won’t be able to meet their financial needs.
- Saving Money: The amount of time and resources you spend on the hiring process comes with a cost to the business, the time saved by including salary information in job adverts saves money too.
- Build your employer brand: Including salary information in job adverts can help you stand out from other job postings and show that your company is open , honest and values transparency.
- Increase transparency in the hiring process: It is not uncommon for candidates to feel uncomfortable negotiating their salary, especially if they are not sure what the position pays. By providing a clear indication of the salary range for the position, employers can reduce the likelihood of misunderstandings or mismatches in expectations.
As businesses strive to become more inclusive and diverse, this is one of the easiest to implement steps you can take to attract a wider range of talent and to increase diversity and inclusion in your hiring processes. By increasing transparency, attracting a wider range of candidates, and addressing pay equity concerns, employers can create a more equitable and fair hiring process that benefits both the organisation and the candidates.