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Here’s How Posted Salary Ranges Have Impacted Hiring

Most employers are including pay information on their job postings but not without causing some friction with current employees.

By Shalene Gupta, Fast Company (TNS)

Legislators are increasingly requiring employers to disclose wages in their job postings. ZipRecruiter surveyed 2,000 hiring managers and recruiters in the United States and asked them how pay transparency impacted recruiting and hiring efforts. Here are some of the findings:

  • Pay transparency is now standard: 72% of employers said they post salary information on all postings, 18% said they only disclose pay in states where it’s required, and 10% said they do not disclose pay at all. Prior to pay transparency laws, only 20% to 30% of job postings had pay information.
  • Recruitment benefits: Three-fourths of employers say pay transparency helped them attracted top candidates and 61% said it made recruitment more efficient, while job postings with pay information receive 50% more applications on average.
  • Internal dynamics: 44% of employers said pay transparency caused tension among existing employees, while 44% of employers worry that posting pay will reduce their ability to negotiate with job candidates.
  • Lower baselines: 48% of companies said that they reset pay downward. Small- and medium-sized businesses were more likely to do this (50% versus 38%). Meanwhile, 41% of employers said that a position had gone unfilled over the past six months because job candidates wanted more pay—a problem companies faced regardless of size.

“It is far from clear that employers will be able to attract top talent unless posted pay ranges remain competitive,” says Julia Pollak, chief economist at ZipRecruiter.


Fast Company © 2023 Mansueto Ventures LLC. Distributed by Tribune Content Agency LLC.