Last year, Tivona Ko applied for more than 100 jobs and ended up doing phone interviews with about 25 companies. Very few of these employers included pay scales in their job postings.
“It gets nerve-wracking selling yourself without knowing what you’re getting for the position,” said the 24-year-old Torontonian, who eventually landed a job in talent acquisition.
Ko says she wouldn’t waste time applying for the lowest paying job if two similar positions paid $36,000 and $60,000, considering she needs a minimum of $60,000 to live on. quite comfortably in Toronto.
In addition to helping applicants ensure that a job is financially feasible, salary transparency helps reduce some of the stress candidates face during the application process. This also has benefits for current employers and employees, as uninterested candidates self-screen before the interview process begins and staff members can find out if their own compensation matches that of new hires.
Since most employers Ko saw did not provide salary information in their job postings, Ko did her own market research and spoke with friends to make an educated estimate of the appropriate salary range.
On May 15, New York employers must provide a bona fide salary range when posting job openings. Amanda Hudson, founder of Toronto-based human resources consultancy A Modern Way to Work, says Canadian employers would do well to follow their lead.
“Many candidates insist on the final stage of salary negotiation when the number is unknown,” Hudson said.
“They’re worried about saying a lower number than they could have negotiated, or if they say something too high, they’ll lose the job. Having a clear amount in the job posting reduces this uncertainty and allows candidates to focus on what matters in the process.
Pay transparency also generates goodwill among potential applicants, Hudson said, especially since it’s currently a candidate market.
“If a company comes out of the door with transparency around the role, it starts to build trust with employees very early in the process before they’re even hired.”
According to Hudson, current employees also benefit from pay transparency because it creates a fairer internal compensation system with the organization. When companies post salaries within a narrowly defined range, they provide data and information to everyone else working in the company.
“It promotes that level of fairness because companies won’t post a salary if they know someone is deeply underpaid, for example,” she said. “Usually with our clients it’s the initial resistance.”
At his own consulting business, Hudson refuses to accept recruiting assignments unless clients agree to display a salary range in their ads.
When clients realize there’s pay inequity at their own company, they’ll often internally correct someone’s salary before posting the ad, she said.
Pay transparency also gives employers a head start in the face of labor shortages and the war for talent.
In today’s environment, the recruiting process needs to move quickly, Hudson said. When employers specify a salary range, it saves them time in the recruitment process because it deters candidates with different salary expectations from applying.
If you are a company that hides the salary and only makes an offer after spending a lot of time reviewing applications, selection and interviews, the whole deal can fall apart if the offer is lower. the candidate’s needs or expectations, Hudson said.
However, if you share the salary in advance, there is often no need to negotiate. And, if there’s negotiation, it’s usually in the $10,000 range, which is often doable for companies, she said.
Showing salary up front also helps reduce unconscious bias in the hiring process, she added. This shows that you have decided on the value of the position rather than the value of the candidate, which also helps to establish pay equity in your company.
Hudson’s rule of thumb for the salary list is to provide a maximum range of $5,000, otherwise the exact number itself for positions below $80,000. If the job is between $80,000 and $130,000 per year, Hudson recommends listing up to $10,000.
For higher salaries, Hudson might include a wider salary range since candidates might have more extensive experience. “There’s more room to play,” she said.
But, when it comes to lower wages, the more specific the better.
This report from The Canadian Press was first published on April 5, 2022.
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