With every job opening that doesn’t include a salary bracket, the call for transparency gets louder! As a conscientious, people-focused recruitment agency, salary transparency takes pride of place in our priorities, and that’s because we value the candidates that we work with. We’re using our position to show hiring teams the benefits of including this detail within their job descriptions, outlining the impact that it has on recruitment, retention, and employee satisfaction.
Why isn’t salary transparency always included in job listings?
There are a few reasons why some companies can’t post the salary bracket in their listings, but the most valid cause is confidentiality. This is often the case with high-level appointments or in situations where a ‘sensitive’ transition is required. In other instances, competition comes into play, as some employers may be concerned that their industry rivals could be creating an even better compensation/benefits package - but this can also have the opposite effect. Sometimes, salary (or the job role) can change depending on applicant experience, so companies may need to make tweaks and be flexible in this regard.
Why do candidates favour companies that are open about their salaries?
As we’ve explained already, salary disclosure is viewed as a green flag by the majority of candidates when looking for a new role. Including a reasonable bracket within a job description shows applicants that the company is looking to build trust with its prospective team members; and it can also be a signifier of the overall company culture..
We’re going to elaborate on some of the meaningful advantages that salary transparency has in creating fair, appealing, refined hiring processes.
Salary transparency communicates trust and fairness
There’s no bypassing the fact that the modern workforce prioritises positive company culture, and taking a non-disclosure approach to wages in job descriptions doesn’t align with this kind of work environment.
Salary transparency is a means of building trust between employers and employees. When salary ranges are shared in digital listings, it eliminates the guessing game for prospective employees (and this applies to current staff, too!). The sense of openness that this creates assures everyone that compensation is based on market standards for the role in question, rather than hidden biases. The result for employers is a more engaged and motivated workforce, knowing they are being treated fairly and equitably.
Reducing wage gaps
A commitment to salary transparency is also a step towards reducing wage gaps. In the UK, gender and ethnic pay gaps are evident across a range of industries; and according to Ciphr, in 2023 the UK's median gender pay gap was 14.3% in favour of men. By openly disclosing salary ranges, employers can set benchmarks to ensure that all employees are paid fairly, regardless of gender, ethnicity, or background.
Enhancing candidate quality and retention
Salary transparency can also significantly boost an organisation’s ability to retain talent. Candidates are more informed and value honesty in potential employers, so they’ll look for early indicators of these values in their recruitment experience. When they can see the salary for the role they’re applying for, the likelihood of mismatched expectations lessens, giving roles a distinctive appeal to ‘perfect fit’ applicants . On the flip side, existing employees who feel they are being paid fairly are less likely to look elsewhere, improving retention rates and reducing turnover costs.
Encouraging open dialogue
Salary transparency encourages open dialogue about compensation and career progression - and many employees don’t feel comfortable in approaching these topics within the workplace context. When culture permits, employees feel more comfortable discussing their roles and salaries, leading to more constructive conversations about performance and development. This openness can drive a culture of continuous improvement, where employees are motivated to advance their skills and contribute more effectively to the organisation’s success.
Setting industry standards
For industry leaders, embracing salary transparency sets a benchmark that can influence the entire sector. By leading the way, companies can push others to adopt similar practices, creating a ripple effect that benefits the broader job market. This can enhance the industry's overall reputation and attract a more diverse and talented workforce.
Implementing salary transparency
While the benefits are clear, implementing salary transparency requires careful planning and commitment. Here are some steps organisations can take:
Conduct market research
Ensure that salary ranges reflect the current market standards and are competitive within the industry. We work in digital, office, and HR recruitment, so we’ve got first hand experience of how wages can differ.
Standardise pay scales
Develop clear and consistent pay scales for different roles and levels within the organisation.
Communicate clearly
Be transparent about how salaries are determined and what factors influence pay decisions.
Review regularly
Regularly review and adjust salary ranges to keep up with market changes and ensure fairness.
Here at Runa Recruitment, we advocate for practices that build stronger, fairer workplaces. Salary transparency is a powerful tool in achieving this goal, promoting trust and engagement amongst employees.
Looking for a workplace that matches your values? Take a look at the roles we’re currently hiring for on our job board, or get in touch to hire with us.