Many employers are concerned that revealing pay ranges in job postings could lead to negative outcomes, but new research shows organizations have found that they lead to favorable outcomes.
In a recent survey, 42% of more than 1,300 HR professionals sampled by the Society of Human Resource Management said that their organizations operate in locations that legally require pay ranges be included in job postings.
When not required by law, however, over two in three (67%) HR professionals say their organization voluntarily list start pay in their job postings at least sometimes, often, or always.
What’s more, 32% of these organizations began including start pay information in their job postings within the past year – signaling some employers may be planning ahead in anticipation of new pay transparency trends, SHRM discovered.
The survey also shows 70% of those organizations listing pay ranges on job postings say that doing so has led to more people applying to their postings.
Nearly two-thirds (66%) of organizations that list pay ranges on job postings says it has increased the quality of applicants they’re seeing, and 65% who include pay ranges say in postings say it makes them more competitive in attracting top talent.
When it comes to asking applicants and employees, 82% of U.S. workers says they are more likely to consider applying to a job if the pay range is listed in the job posting.
In addition, 74% of U.S. workers say they are less interested in applying to job postings that do not list a pay range, while 73% respond that they are more likely to trust organizations that provide pay ranges in postings than ones that do not.
When considering pay transparency in job postings, organizations will also need to prepare for how doing so may affect current employees – 36% of organizations said this change resulted in more current employees requesting a pay raise.