Picture it. You arrive at the car dealership ready to shop for a new vehicle. There’s a great new model on the lot that immediately catches your eye. A salesperson approaches and starts to tell you about its long list of features and it’s immediately clear this is a match made in car heaven.
It has everything on your must-have list, along with buttery soft leather seats and a sound system that will make your commute feel like you’ve just scored killer concert seats. You’re completely sold, until you hear the price and the subsequent sounding of the gong in the distance. As much as you’d love to buy it, it’s $20,000 more than you can afford.
You’re disappointed because you can’t get what you want and now every other vehicle out there will feel like a sub-par substitute. The salesperson’s disappointed because he feels like he’s wasted his time. It’s a four-wheeled lose-lose whichever way you look at it.
Be honest – you knew that story was going to go south from the get-go. Who goes shopping for a Lexus when they’ve got a Toyota budget? Unless we’ve been fortunate enough to be on the winning end of a lottery ticket, the finance factor plays a central role in most major life decisions, and this is especially true for the source of your financial options – your job.
Unfortunately, many companies forget this fact when they are developing their job ads. One of the most common things we hear from clients is that they don’t want to include a salary range for the position.
Those objections typically sound something like this:
- “We won’t know the pay range until we find our ideal candidate and have a better sense of the experience they have.”
- “It could create problems with existing staff if they see this position gets paid more than what they’re making.”
- “We never start talking about money until we’re ready to make an offer.”
What we know for sure, and the research backs us up, is that if you are not including a salary range in your job ad, you’re missing out on some great candidates. To go back to our car shopping analogy, a good 25 to 30 per cent of candidates will simply not spend their time kicking the tires on a job if they don’t know the salary range. When they see a job posting that does not include a salary range, they move on to the next ad that does.
If you truly want to attract the very best candidates for your position, you need to get clear and comfortable with the salary range you’re willing to offer so you can include it in the posting. And if posting that salary range inspires a current employee to come forward and question their salary, it’s probably something that was on their mind already. Having an open and honest conversation about the pay structure that your business is able to support may actually help you keep that employee around longer.
If you’re still not convinced of the benefits of including a salary range in your job postings, there may be a compelling new reason in the near future: the law (if you live in Ontario, Canada).
On May 7, 2018, the Ontario Government’s Pay Transparency Act, 2018, or Bill 3, received Royal Assent. Bill 3 creates new rules about the disclosure of compensation information in Ontario and will come into force on January 1, 2019.
Section 6 of the Bill states:
“Every employer who advertises a publicly advertised job posting shall include in the posting information about the expected compensation for the position or the range of expected compensation for the position.”
Find complete details about Bill 3 here.
If you’d like some help getting over the hurdle of including a salary range in your job ads, our Fitzii Hiring Advisors are here to help. Contact us today and let us help you find the best candidate for your next job opening.