Indeed Salary Estimator is the New Reason to List Compensation

Conor Roach —  February 27, 2017 — Leave a comment

A new “salary estimator” feature Indeed is currently testing and rolling-out for mobile jobseekers may have significant impact on the effectiveness of your Indeed advertising campaigns. For some time, Indeed has listed applications that include compensation information with a brief blurb on how they are displayed. Recently, Indeed expanded that feature to include an estimated compensation for mobile users. This salary estimate is displayed both for positions that list the compensation in the ad and for postings that do not explicitly list a compensation range.

Salary estimator

This is an example of the new feature in action. Notice the grey text indicating “$30,000 – $33,000 a year estimated by Indeed”.

How does it affect applications with no compensation figures listed?

If Indeed’s salary estimation is exactly accurate, the worst that can happen is that candidates find out your role’s compensation earlier in the process than you wanted. More likely, the estimated range will be higher or lower than your actual ideal range. This will be particularly true as they continue to refine their estimates (it’s only in beta and will presumably get more accurate over time) and if your position has a broad title. Each of these bring clear negative ramifications for your recruiting process. If their estimate is lower than your actual range, it’s possible that highly qualified candidates that would seek a higher compensation will be deterred. If Indeed’s estimate is higher than your range you will receive more candidates than you would otherwise, but when it comes to negotiation, candidates may have unrealistic expectations of what your offer will be. It is worth reiterating that this is currently in beta and is only being tested; it will not effect every job or every market.

Why is Indeed doing this?

Based on data Indeed collects, candidates are more likely to engage with job postings when salary figures are available. Ultimately, Indeed’s goal is to increase the likelihood that candidates click postings and to improve the candidate experience when job searching by giving them additional information.

What can you do?

Our best practice continues to be to list compensation figures in your application when you can. This change to Indeed is just one more reason why it is better to list a competitive compensation and to remain in control of how candidates perceive your jobs.

Conor Roach

Posts

Conor is a Staffing Coordinator here at NewHire. He is a graduate of University of Wisconsin-Madison (go Badgers!) and in his free time he enjoys watching films, binging television series, and attending music concerts around the city.

Get more recruiting tips via email. Straight forward. No spam.

No Comments

Be the first to start the conversation.

Leave a Reply

Text formatting is available via select HTML. <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

*