Why You Should List a Pay Range in Job Descriptions

Up until a few years ago, it was unusual to see salary information included in private-sector job postings.

But that’s changing rapidly — and so are worker expectations.

Here are six reasons to list a pay range in your job descriptions.

1. Your state or locality may require it.

In 2021, Colorado became the first state to require salary ranges in job postings. Only three years later, nine additional states, the District of Columbia, and several cities and counties had enacted pay transparency laws. Multiple states are now considering legislation.

Even if you are not yet legally required to list a salary range, it’s the way the regulatory winds are blowing. It’s better to be ahead of the curve than scrambling to catch up.

2. If you don’t, the job listing sites you use may do it for you.

Some job listing sites, most notably Indeed, will fill in an estimated salary range if your job listing doesn’t include one.

Indeed has taken a strong stance on pay transparency, and its user data supports pay range as a crucial metric for job searchers. According to Indeed, more than 40% of candidates use the salary filter as the first filter they select when searching for jobs. Without a salary range listed, many jobs on the site would simply go unseen.

If you do not list your salary range on these sites, you risk an incorrect calculation that can deter candidates or raise false expectations.

3. You may attract more applicants while lowering recruiting costs.

Numbers get attention. According to Indeed, job ads listing a salary attract 40% more applicants than those that don’t. This may be attributed to greater visibility (by job seekers using the aforementioned salary filter) and the growing demand for transparency.

You may also pay less for job ads. A 2022 study conducted by job advertising platform Appcast found that job posting ads with pay in the title had an average 35% lower cost-per-click.

4. Many job seekers — especially younger ones — will not apply for jobs that don’t list a pay range.

A host of recent studies bear this out.

• A 2023 Joblist survey of nearly 30,000 job seekers found that 55% would not apply for a job without salary information. That number increased to 64% for Gen Z applicants. A definitive 91% stated they were more likely to apply for a job with pay information.
• In a 2023 ResumeLab study, 80% of 1,000 workers surveyed stated they would likely not apply for a job that didn’t include salary information. Furthermore, 77% felt it should be illegal not to include a salary in job postings.
• A 2023 Gartner survey of nearly 3,500 job candidates revealed that, within a 12-month period, 44% chose not to apply for a job because the job description did not include salary information. Sixty-four percent stated they are more likely to apply to a job that lists compensation in the description.
• Adobe’s 2023 Future Workforce Study found that 85% of upcoming and recent U.S. post-secondary graduates are less likely to apply for a job that doesn’t include a salary range in the posting.
• Gen Z expects pay transparency, according to a study by Indeed and The Center for Generational Kinetics. Of the 2,000 people aged 16 to 26 surveyed, 85% considered it very important to list pay.

5. Upfront information saves your time and theirs.

By the time you interview a candidate, both parties have invested considerable time, effort and energy into the process. It goes to waste if the salary is non-negotiable and completely mismatches the candidate’s needs and expectations. Not only will the candidate not accept your offer, but they may be disinclined to apply for future positions at your company.

Stating your salary range upfront helps make the best use of everyone’s time. If the pay makes hiring difficult, waiting to disclose that information until the offer will not solve the issue; it will only prolong it.

6. Transparency builds trust.

Listing “competitive wages” instead of the actual pay range doesn’t cut it with many job seekers today. If the pay truly is competitive, many reason, it would be listed. They may feel that the company is hiding low pay — or concealing higher starting pay from their current employees.

In the ResumeLab study referenced above, 77% of respondents stated that companies that do not include salary information in their job postings could not be trusted. When asked the reason why an employer wouldn’t list salary information, responses included:

• Concerns about competitors knowing how much they pay (82%)
• Not wanting to limit negotiation options during recruitment (82%)
• Salary is dependent on many factors, not just the position itself (81%)
• Not wanting current employees to know they are underpaid (79%)
• Dishonesty (77%).

Pay transparency not only alleviates candidates’ concerns but can build trust with current employees and uncover pay disparities that need to be addressed.

Need personalized help with your candidate search?

Summit Employment Professionals offers direct hire, evaluation-to-hire and temp staffing in Wichita, Kansas, and Tulsa, Oklahoma, plus executive search and HR solutions. Contact us today.