Tired of job ads with no salary range? Here's what you should do
You see a job that matches your skillset, you do some research into the company and they've got exciting plans, you can see yourself growing with the team- then you get to the salary section and read things like "Market rate" or "Competitive salary".
Let's be honest, we don't want to work for free- well, most of us at least. Pay is a big part of a decision in deciding which job to go for, or which jobs to apply to in the first place. So why don't companies make the salaries public from the start?
"The pay is obviously really low!",
I don't want to work for a company that isn't transparent."
"They're just going to waste my time going through all the interviews, only to offer me less than I'm looking for."
Is this your train of thought?
In fact, it's not so simple and there are several reasons why most companies do not disclose salary ranges in their job ads:
It can create resentment amongst existing employees. In an ideal world, someone doing the same job would make the same amount of money when they start. But that’s not always the case. Labour markets and demand changes, skill sets and experiences vary vastly between employees and candidates and often employers have to pay higher salaries to attract the best talent. This could cause conflict internally if existing employees see an advertised position for more than they're currently making.
Fear that listing a salary range will lead to all applicants expecting the top end of the range. The figure at the top of the range is reserved for the most qualified candidates, but it's human nature to see the highest figure and aim for that. Then if the candidate receives an offer at the bottom end and accepts this it could lead to resentment- which is not a great start.
It makes it easier for the competition to poach employees. You may retort with, "well they should pay more then". However, that isn't always realistic. How would a local Indonesian retail company compete with the salary of a large US Fintech for example?
Remote 1st companies have so many other factors to consider. It's no easy feat to decide on a salary range when you have employees based in 2-3 countries, let alone 4-6 continents! Selfishly and myopically, I say we should all be paid equally irrespective of where you're from or where you live. But life isn't so simple, and this could have a drastic knock-on effect that requires an article of its own.
From a candidate’s perspective, all these factors may signal integral issues within companies that haven’t considered or effectively implemented policies around compensation. That may be true, but those companies are still in the majority- with only 22% of employers publishing the pay range upfront in job postings, according to this report published in 2022. That means you're missing out on 78% of companies if you don't apply to jobs with no salary disclosed.
The good news is, this is up from only 12.6% of companies the year before.
That's right, there's a growing global movement to make salary transparency, not just the 'new norm', but the law!
In Latvia, for example, a new law that came into effect in 2019 makes it mandatory to post expected salaries on all job ads.
Colorado became the first state to enact a law similar to Latvia’s in 2021, requiring employers to disclose hourly wages or pay ranges in all employment listings, with fines for not complying between $500 and $10,000 per violation. There are several other states that have addressed this need for transparency in addition.
The EU is following suit too. Under the new proposals, employers will have to provide information about pay rates and ranges in the initial job advertisement or before the interview.
Change is happening, and for the better- hurrah!
So what do in the meantime about that pesky 78% of companies that don't disclose salary? Simple. Disclose your salary requirements in your job application.
That's not to say you should disclose what you currently/ most recently earnt- this is totally irrelevant and in some states and countries, it's illegal for employers to ask you about your earnings.
Simply state a salary range that includes the minimum you would accept and a realistic maximum number based on location and market range. If you're flexible, depending on the whole package- say so.
Transparency is something I wholeheartedly believe in, but it should work both ways. Everyone has a number.
Good luck!
Michelle