When a company is looking to hire and they are putting together the job spec to put out into the market, internally they have to agree on what that role is worth and the range they are willing to pay for that role, yet in many instances in today’s market when advertising companies only mention of salary is when they say ‘competitive salary’, what does that even mean and why do they insist on keeping it vague
Why don’t they do it?
Employers argue that if they put the salary on the job ad, they would be inundated with applications, but is this the real reason?
Some employers cite that they have never shared salary expectations, but recruitment practices evolve like every part of your organisation and not disclosing remuneration is quickly becoming an archaic way of doing things.
Employers might hope they can save money on talent. Although they think your position is worth £65k if they can get you for £55k they will. Although tacky and boarding on unethical, your manager may be pleased with you for saying them £10k but what is the cost in the long run and what kind of environment does this mentality breed.
Another reason employers argue they don’t provide the salary range is that it gives them more opportunity to look at a wider range of applicants.
Some employers say that they can’t show the salary because people already employed by them may become disgruntled. Keeping salary information private in the workplace helps mitigate jealousy and constant raise requests.
Who are the most likely to undervalue themselves when applying for jobs?
When offered a ‘competitive salary’, the most likely people to be undervalued are women, ethnic minorities, LGBTQ+, and people with a disability.
According to the charity Young Women’s Trust, women earn on average £223,000 less than men over the course of a lifetime based on data from the Office for National Statistics and shows that a gender income gap exists as soon as women start working.
The difference in pay between the sexes is largest among higher earners.
The difference in gross hourly earnings (excluding overtime) for men and women at the top and bottom decile and median, UK, 1997 to 2020, full-time employees.
What about across the United Kingdoms?
The gender pay gap varies substantially between regions. In every region of England, it is higher than in each of Northern Ireland, Scotland and Wales
The gender pay gap is higher in all English regions than in Wales, Scotland and Northern Ireland
The gender pay gap for median gross hourly earnings (excluding overtime) by work region, UK, April 1997 and 2020, full-time employees.
According to a recent survey by Hired.com in 2020 men were offered higher salaries than women 63% of the time. CEO Mehul Patel advised “There is a clear correlation between the gender wage gap and what we have identified as the ‘Expectation Gap’. The Expectation Gap is borne from a variety of external factors including lack of easily available compensation data and a phenomenon known as ‘imposter syndrome’ which, combined with other influences, further cement the wage gap. This is also true of many candidates of ethnic minorities and those identifying as LGBTQ+.”
What happens when you ban asking for salary history?
When companies were banned from asking about salary history in the US, it led to an average increase of 8% in pay offered to women candidates and a 13% increase for Black candidates.
Why shouldn’t companies try and save money on hiring?
As mentioned above it breeds inequality women, ethnic minorities, LGBTQ+ and people with a disability constantly undervaluing their skills and therefore are paid less money for the same role as their white male colleagues.
It also breeds toxicity in the workplace. If you work at a company where they are perceived as the boy’s club, where most workers are women but the leadership positions are men then this leads to a constant discussion on salary and leadership within this organisation and it can breed negativity and distracts people from focusing on the task at hand.
If you hire people for less than the competitive salary, they will likely leave and the cost to hire again and retain could outweigh the benefit of underpaying them.
In conclusion
Greater transparency will benefit both the employers and the applicants, the transparency creates a culture that provides openness and makes you feel welcome which leads to attracting a greater variety and diversity in applicants and reduces the pay gap for women ethnic minorities, LGBTQ+ and people with a disability.
About ea Change
We approach all associates with an inclusive mindset and strive to eliminate unconscious bias from our search and selection process. We continually monitor the diversity of our resource pools and share our insights with clients, providing complete transparency. In doing so, we actively support talent acquisition strategies by aligning our process with your inclusion and diversity objectives.
If you would like to talk to one of our team about a role please call or email us today.