Why is salary transparency better for everyone?
It is crazy to me that this question is still having to be talked about. Honestly, I feel hiding the salary is an old school way of hiring employees. When I look for a job the first thing, I look at is the salary. To me the reason is simple. I don’t want to waste my time filling out the job application if the salary is below what I am looking for. It takes valuable time applying for a job that cannot pay what I need for my family. I have stopped applying for jobs that do not post the salary on the job description. In my opinion it goes beyond just a waste of time, it tells me a lot about their company culture and work environment.
The same is true for employers. Who wants to go through the hassle of reviewing resumes, setting up interviews, offering someone the job for them to turn down the job offer due to the salary? That is wasted time for your company and the applicant. Since they turned down the job offer you have to restart the interview process all over. It cost the company valuable time and money. It can all be avoided with posting the salary.
Salary transparency also shows that a company respects and values their employees. The company is not hiding the salary from their current employees, and you as an applicant can negotiate your salary. Companies that do not post salaries often do not want their current employees to know how much they are willing to pay for a new hire. Oftentimes that shows the company is not paying current employees the going market rate, or hasn’t provided raises to keep up with competitive salaries. It also denies the applicant a chance to negotiate their salary. For me it boils down to respect for you as a future employee. If the company is not being transparent with you now, why would they be in the future?
Some people reading this might think that money isn’t everything. I would agree with those people. There is no amount of money that is worth a crappy work environment. If employees are treated well and fairly, they are more likely to stay in a job where the pay is not competitive. I have stayed at jobs where I was underpaid, because the work environment was amazing, and I genuinely loved what I was doing. How are applicants supposed to know that you are offering a healthy work environment if your company is not providing one tiny but important detail?
Actions are louder than words, if you want to show applicants that you have a good and healthy work environment, then post the salary on the job description. It will save your company time and money. If you are looking for a job, think about what type of work environment you want and how will you find it? I personally stopped applying for jobs that do not show the salary. I’m not sure that is the answer, but it is a starting point.