Our clients often wonder whether they should include salary information in their job descriptions. Yes –  but no. It’s a tricky one. 

While some argue for the benefits of transparency and clear expectations, others advocate for the flexibility and negotiation leverage that comes with omitting specific salary information. 

As often, the answer is not black or white, but there are factors you may want to consider.

Good reasons for including it

1. Legal reasons and job board requirements
   

   While publishing the salary in the job offer is not (yet) legally required in Europe (it is, however, the case in New York City), some popular job boards like Indeed will only let you publish an ad if a salary (bracket) is included.

2. Attracting more relevant candidates and filtering out mismatched ones

   A study conducted by Reed.UK found that by including the salary bracket, you can attract 27% more candidates. At the same time, it helps filter out those who are seeking significantly higher compensation.

3. Transparency and equity

4. Including a salary bracket supports fairness and equity in the hiring process. It ensures that all candidates, regardless of their gender or ethnic background, will be compensated based on the same grid which promotes a more inclusive work environment.

5. Employer branding
   

   Showcasing your organization’s commitment to fairness and open communication can improve your company’s reputation and attract candidates who appreciate such values. 96% of job seekers say that it’s important to work for a company that embraces transparency (Glassdoor U.S. Site Survey, 2017)

   Details on compensation and benefit packages list among the top 5 pieces of information job seekers want employers to provide when looking for a new job (Glassdoor U.S. Site Survey, January 2016)

6. Time-saving by reducing negotiation rounds
   Communicating clearly on what you are willing to offer can avoid lengthy salary negotiations during the final stages of the hiring process, stealing a step on your competitors who wait until the last round to talk about money. Based on a Study conducted by the MRI Network, 25% of candidates who refuse a job offer do so because of the compensation.

While including a salary bracket has its advantages, there are also valid reasons why some employers choose not to disclose it:

When does it make sense to not indicate a salary?

1. When the role is open to people of different experience and skill levels
   When hiring different profiles in different ranges, retaining flexibility allows you to negotiate compensation based on various factors such as the candidate’s experience, skills, qualifications, location, or performance-based incentives. In certain roles or industries, the salary range might be quite broad due to these factors. Leaving it open may avoid misconceptions about the actual compensation potential. Packages and benefits can be tailored to the individual candidate profiles.

2. Preventing unrealistic expectations
   

   When applying to an offer with an indicated salary bracket, candidates often position themselves at the upper range which does not necessarily reflect their real market price. This can either lead to a gap between the candidate’s expectations and the offer they will receive, or, perhaps worse, as a recruiter you may label them as “overpriced” and not even bother interviewing them.

3. Negotiation leverage
   Delaying the compensation conversation allows you to gauge the candidate’s enthusiasm, skills, and company fit and have a clear idea how valuable they would be to your organization before opening the negotiation.

4. Confidentiality
   Especially in competitive markets, you may not want to disclose salary information publicly to prevent competitors from gaining insights into your compensation structures.

5. Unique benefits or perks
   

   Compensation is not solely limited to salary. Some companies offer additional value through attractive benefits, such as healthcare, retirement plans, travel allowances, or professional development opportunities. These values can easily be overlooked by candidates who only read the “price tag” of the job ad.

In conclusion, including or omitting a salary bracket requires careful consideration of your company’s specific circumstances. Testing both options can help assess which ad generates more and better candidates and which strategy works best for your organization.

In any case, a fair and logical payment policy that is solely based on skills and achievement can best be achieved through transparency within the organization. 

On this middle ground, you can still p(l)ay a fair game without disclosing your company’s compensation structures to competitors.