Why Companies Should List a Salary Range for Candidates

Alicia Hall —  December 2, 2014 — Leave a comment

list-a-salaryIn advertising an open position, it’s important to be as transparent as possible about the job at hand. A field’s top candidates have their pick of positions, and most applicants don’t consider guessing potential income to be a game worth playing. At NewHire we found that the number of applicants increases significantly when employers list a salary range, a dollar amount. This indicates that salary is a top factor when it comes to deciding whether to apply.

Some business owners and human resources professionals have concerns about posting salaries. But for the benefit of your recruiting efforts, consider changing your thinking when it comes to these concerns.

Here are three of hiring managers’ common concerns/questions when it comes to whether to list a salary range—and reasons to consider adjusting your strategy.

I don’t want my other employees knowing how much this position is paying.

It can be uncomfortable for employees to discover that a position is available within their company that is paying significantly more than they’re making, especially if they haven’t received an increase in their own wages. But employees may perceive salary information differently, especially if it’s for a different position than their own. They understand that each function in the company comes with a correlated pay. Also, with the accessibility compensation websites like Salary.com, most people are no longer in the dark about what positions are paying.

To attract top candidates and keep your employees happy, be prepared to handle internal inquires about why a certain position commands more pay than another. Revealing salaries could also motivate employees to work toward higher-level positions, which could eliminate recruitment for those roles in the future.

What if I want to pay depending on their experience?

It’s common to receive a variety of resumes with varied experience levels when you have an open position. You may locate a standout candidate with little experience, or you may have a 10-year, seasoned expert. If you are open to both extremes, it is best to settle upon a salary range that would make sense for the respective candidates.

What if I absolutely cannot list a salary range under any circumstance?

There are instances where it would be out of the question for you to list a salary range in your advertisement. In these circumstances, it’s best to state that you are paying a competitive wage. Then, if you are using a NewHire application, create a customized question asking what salary the applicant would be expecting in your open position.

For budgeting purposes, it’s important for you to know what salary the applicant is looking for, and if you move forward with the candidate, they will know you have noted their requirements.

These are a few suggestions to get you moving toward advertising a compensation for your open positions. Do you have any other situations that you feel are preventing you from listing a salary range? Do you have any additional reasons why consistently advertising salary is a great idea?

Alicia Hall

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Alicia is one of our Staffing Coordinators at NewHire and recruiting experts. She’s a true Chicagoan, and knows just about every good eats, music venue and gallery in the city.

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