K
Kathleen Martin
Guest
It’s no secret that Europe’s post-pandemic economy is facing a growing skills shortage. Nearly half of European employers are already having trouble attracting candidates. If left unresolved, it could lead to a global talent shortage of more than 85 million people by 2030. Little wonder, then, that companies are more interested than ever in how they can stand out from their competitors and attract the best employees. Our new study suggests that salary transparency is the way to do it.
Findings show that only 20% of jobs posted on Talent.com currently include salary information. This shows a clear misalignment between employers and job seekers, considering 98% of those surveyed said they want to know the salary of a job before applying and would be put off if salary wasn’t clearly stated. Furthermore, 79% would even support a law obligating employers to disclose salary ranges in job postings.
Openness attracts
While organisations may be fearful that including salary information in job adverts could cause them to lose out on applicants, the result is actually positive. It filters out unsuitable candidates while potentially attracting skilled ones who may have otherwise not bothered. The bonus: this saves companies time and money. Although some might expect pay transparency to put increased financial pressure on a business, when you factor in the cost of unfilled positions for important roles and of turnover when unsuitable employees leave, it’s often a more economical choice.
Salary transparency could also attract a wider range of applicants, such as women and those from minority backgrounds, as it presents a company as progressive and inclusive. Some 71% agreed that wage transparency would help to close the gender pay gap, and 66% agreed this would also be the case for ethnic minorities. Disclosing pay from the start and continuing to be open about it means employees know whether they’re being compensated fairly and allows them to call it out if they’re not.
This is particularly pertinent when one considers that almost one-third of those surveyed reported they’d experienced pay discrimination and some even cited it as a cause for leaving their previous organisation.
Laying down the law
In a study we conducted in New York, 98% of job seekers indicated that it was important to know salary before applying. It’s no surprise then, that in parts of the US, that pay disclosure is now being enforced through litigation. It’s already a requirement across several states and cities, with New York City being the latest addition with its pay transparency law. Both Washington and California will follow suit with tighter legislation in January 2023.
It’s arguable that we’ll see a similar approach across Europe in the coming years, foreshadowed by the EU Pay Transparency Directive. Although this likely won’t be implemented until 2024, among other things it will require companies with at least 50 employees in member states to publish or provide wage details from the outset. It will also prohibit pay secrecy within an organisation and give workers the right to annually request information about their pay level and average pay levels, broken down by sex, for employees doing the same or equal work to them.
Continue reading: https://www.europeanbusinessreview.com/why-companies-keeping-hush-about-money-is-actually-a-disadvantage/
Findings show that only 20% of jobs posted on Talent.com currently include salary information. This shows a clear misalignment between employers and job seekers, considering 98% of those surveyed said they want to know the salary of a job before applying and would be put off if salary wasn’t clearly stated. Furthermore, 79% would even support a law obligating employers to disclose salary ranges in job postings.
Openness attracts
While organisations may be fearful that including salary information in job adverts could cause them to lose out on applicants, the result is actually positive. It filters out unsuitable candidates while potentially attracting skilled ones who may have otherwise not bothered. The bonus: this saves companies time and money. Although some might expect pay transparency to put increased financial pressure on a business, when you factor in the cost of unfilled positions for important roles and of turnover when unsuitable employees leave, it’s often a more economical choice.
Salary transparency could also attract a wider range of applicants, such as women and those from minority backgrounds, as it presents a company as progressive and inclusive. Some 71% agreed that wage transparency would help to close the gender pay gap, and 66% agreed this would also be the case for ethnic minorities. Disclosing pay from the start and continuing to be open about it means employees know whether they’re being compensated fairly and allows them to call it out if they’re not.
This is particularly pertinent when one considers that almost one-third of those surveyed reported they’d experienced pay discrimination and some even cited it as a cause for leaving their previous organisation.
Laying down the law
In a study we conducted in New York, 98% of job seekers indicated that it was important to know salary before applying. It’s no surprise then, that in parts of the US, that pay disclosure is now being enforced through litigation. It’s already a requirement across several states and cities, with New York City being the latest addition with its pay transparency law. Both Washington and California will follow suit with tighter legislation in January 2023.
It’s arguable that we’ll see a similar approach across Europe in the coming years, foreshadowed by the EU Pay Transparency Directive. Although this likely won’t be implemented until 2024, among other things it will require companies with at least 50 employees in member states to publish or provide wage details from the outset. It will also prohibit pay secrecy within an organisation and give workers the right to annually request information about their pay level and average pay levels, broken down by sex, for employees doing the same or equal work to them.
Continue reading: https://www.europeanbusinessreview.com/why-companies-keeping-hush-about-money-is-actually-a-disadvantage/
