Studies indicate that four in five (78%) job seekers are less likely to apply for a job vacancy that lacks salary information.

Against the backdrop of current economic and labor concerns, could business owners who follow a culture of salary secrecy limit their ability to attract the best talent, especially from diverse backgrounds?

Or are there advantages to keeping pay information confidential?

Let’s explore this dilemma.

Case 1: Transparency Enables Greater Diversity and Trust

Being transparent with pay can positively impact recruitment and retention, helping to reduce inequality. It may also narrow gender pay gaps, as imbalances are more likely to be exposed and addressed when salary information is freely available.

It can also help boost morale, engagement, and trust. Pay transparency can also be a powerful advantage in today’s competitive landscape, appealing to those who tend to be salary-conscious.

Businesses that disclose salary ranges show potential hires that they value fairness and transparency. This sets realistic expectations from the get-go and eliminates the use of salary benchmarking or sources like Glassdoor to find out the salary.

Several states in the US have implemented or are considering pay transparency laws, such as California’s Fair Pay Act and New York’s Salary History Ban. These regulations promote salary transparency and aim to reduce pay inequity.

Case 2: The Strategic Advantages

Opting to withhold salary details from job advertisements could be viewed as a strategic move, offering potential leverage during salary negotiations with candidates.

While providing a salary range offers some benefits, such as flexibility without committing to a specific figure, the absence of one allows hiring across a range of experiences and situations.

This approach would be helpful if you aim to attract candidates spanning entry-level professionals seeking part-time work to more experienced individuals considering retirement. Without a fixed salary range, the focus remains on finding the ideal candidate, irrespective of their level or preferred working pattern, free from salary constraints.

Salary transparency continues to be a hot topic, with many benefits and implications. If you’d like to explore this further, don’t hesitate to reach out for a chat.