We’ve run the numbers and it’s that simple. Jobs which advertise a salary range are 4 times more likely to successfully hire a candidate.
The logic stacks up. By adding a salary range to your role, candidates can accurately determine if the role is a genuine “fit” for them. Something that is increasingly hard given job title inflation. This helps to overcome the “it’s probably not for me” psyche, as well as reducing inappropriate applications.
We’ve heard a fair few reasons as to why companies can’t advertise salaries. This short post firstly lays out the logic on why we thought advertising salaries was important. We then look at the evidence base supporting the fact you’re 4 times more likely to hire with a salary range. And finally, we look to debunk the myths around the risks of advertising a salary with a role.
THE “IT’S PROBABLY NOT FOR ME” PSYCHE
As a consultant looking through potential opportunities, I was always frustrated by how hard it was to decipher the seniority of each role. Job titles have been distorted/ inflated to such an extent, it’s impossible to tell the seniority difference without some knowledge of the company – different companies mean very different things by the same title. In fact, jobs posted on movemeon as “manager” have had salaries between £40k to £120k!
When there’s any doubt, we often see the “it’s probably not for me” psyche take over. Whether it’s an excuse to put off taking the plunge or not, we’ve found candidates are often deterred from putting their hat in the ring unless they’re certain a role is a fit.
Here at movemeon, we wanted to see if our hypotheses were right. So Adam, our head of insight, set about analyzing the impact of putting a salary range on a job post. He found:
- 49% the applications that resulted in a hire were for jobs that advertised salary (rather than “on experience” or “competitive”)
This was despite the fact that only 16% of jobs were advertised with a salary range – we couldn’t believe it.
You are 4 times more likely to hire a candidate from a job post if you advertise a salary!
When looking in further detail at the underlying factors, Adam discovered that that jobs advertising a salary get 16% more applications than “competitive” and 32% more than “on experience”. This accounted for some of the change, but the rest (the 350%) is a result of better quality applications to jobs which advertise a salary range.
THE MYTHS AROUND WHY EMPLOYERS CAN’T ADVERTISE A SALARY
Over many discussions with clients, we’ve heard how they are quite often unable to advertise a salary. On further discussion, it’s clear they are as frustrated as us, but are unable to go against company policy.
Whilst this leaves them in a very hard position, we hope the data we have collected here, plus debunking a few myths around rationales, will give them a strong case to revisit company policy / be able to flex it for certain roles.
It’s worth noting that here at movemeon, we only ever advertise our roles to our members. You are not advertising salaries to the public and this information is not available to Google – or any other search engine. This should help get over the fear we hear of most often. The other myths are:
- We can’t advertise salaries in case someone internally see
- Firstly, this shouldn’t be a problem, as a result of fixed bandings and a well thought out compensation scheme. Gone are the days of huge disparity in pay at the same banding – transparency around salaries has moved forward a long way in the past few decades.
- However, even if it was a problem to know the exact salary, a 20% range will not be helpful intelligence at all. Candidates applying for the job just want to know the order of magnitude, not an exact number.
- We can’t advertise salaries in case our competitors see
- As explained above, a 20% range is not classed as competitive intelligence. If we were to go up to the majority of competitors, and ask them for a salary range associated with a specific roles, I’m sure they will be able to get to a more accurate picture than a 20% range!
- Discrepancies from market rate have also shrunk over the past few years, as a result of increased transparency. And if they do exist, they are well known about.
- So in short, this information will be nothing new to any of your competitors!
- We don’t have a fixed number in mind as it could be a range of different seniorities
- Whenever we hear this, alarm bells ring. The advert is clearly too broad: if you could be taking someone with considerably different levels of experience, you must be talking about two (or potentially even three) separate roles.
- As such, two roles need to be articulated. Regardless of whether you can only take on one of these people, the roles will be very different when they arrive at the company. This is especially important given the “it’s probably not a fit for me” psyche.