Research conducted on 2,250 employees and hiring managers by recruitment site Reed, has found that 78 per cent of candidates in the UK are less likely to apply for a job vacancy that does not display a salary - resulting in a request for greater transparency during the recruitment process.
According to Reed, 22 per cent of applicants for jobs only apply for those with a listed salary. Despite this, recruiters admit that they either do not - or only occasionally - include the salary on 44 per cent of all job advertisements.
In addition, despite 42 per cent of hiring managers finding that when the salary details were provided, the applications increased; 38 per cent believing a greater relevancy of applications were received and 35 per cent were of the opinion it saved time in the recruitment process, 62 per cent of hiring managers thought a lack of salary transparency had no negative impact on applications.
A recent government announcement states that a pilot scheme to increase pay transparency is being launched with the object of equalling opportunities for women. Employers would be required to list salary information on their job adverts - and not to ask candidates about their salary history.
Simon Wingate - Managing Director of Reed - said:
“You wouldn’t shop in a supermarket that doesn’t list its prices, so why should we expect people to sift through job ads that don’t advertise salary? From our research, it’s clear that jobseekers want to apply for roles at businesses that are open about what they pay.”
He added:
“Not only will you generate more applications, you’ll also be able to attract from a wider talent pool and avoid any negative impact to your employer brand.”
Charles Cotton - Senior Reward and Performance Adviser at the CIPD - stated that employers should be more transparent about pay, stating:
“Doing so will not only help set reward expectations among job applicants and reduce the risk of unfair pay gaps, but also encourage a greater diversity of people to apply.”
He added that employers should also go further and give information on pension schemes and any other benefits in their job ads.
Gemma Bullivant - an independent HR and reward consultant - commented:
“Pay transparency is a crucial component of the reward strategy and architecture of an organisation and something that is often overlooked or considered too hard to tackle. With the right architecture in place, you can attract more talent to your pipeline as this survey suggests, streamline recruitment processes, establish clear pathways to grow and retain key talent and make robust and equitable pay decisions to ensure any pay inequities are resolved.”
