15th June 2022
According to figures from The Office for National Statistics the number of job vacancies rose between March and May 2022 to a new record of 1,300,000. That’s an additional 503,900 job vacancies compared to those advertised between January and March 2020.
This candidate-led market is inevitably going to continue having an impact on salaries. The latest ONS figures revealed that between January and March 2022, there was a 7% growth in the average total pay (including bonuses) among employees.
While some of this growth has been attributed to temporary factors, salaries are still rising. It’s not just affecting those sectors highlighted in the news as struggling with shortages either, like logistics or hospitality. It’s across the board. At the same time, with taxes and inflation rising, income’s firmly in the spotlight for many households too. This all has big implications for recruitment. Are your salaries competitive enough to attract good candidates? And just how open should you be about them when you’re advertising your vacancies?
Candidates are looking out for opportunities that offer competitive salaries so how well do yours compare? You might assess them in relation to other positions in your company fairly regularly. But it’s also important to review them against local benchmarks and within your sector to make sure what you’re offering is likely to attract the kind of candidates you want.
Even if your salaries are competitive, be mindful of the impact of other factors as well. To attract the best, you’ll need to regularly check whether you can do more to improve on the whole package that’s on offer. Rather than office-based perks like social space, pool tables and free snacks, employees are increasingly valuing things like training opportunities, progression, and flexibility.
As our client Moneypenny highlighted when commenting on research it carried out this year, perhaps the most important thing to bear in mind is that different candidates will value different things – so some flexibility in terms of what you can offer could put you in a stronger position.
The question of whether it’s wise to disclose salaries in job adverts can generate some debate. Some employers are concerned it might cause problems with existing employees or limit negotiations with candidates further down the line. Some believe not being able to offer a huge salary will work to their disadvantage. Others argue it gives competitors an idea of pay rates, which they can use to their advantage.
But based on our experience, the benefits of mentioning the salary outweigh these concerns and here are the reasons why.
It increases the number of suitable applicants
The simple fact is that salary is one of the first things a jobseeker will notice. At this stage, they probably won’t know a great deal about your company, so they’ll be making an immediate judgement about the suitability of the role based on where the salary is pitched. You might find the ideal solution is to share a salary range.
Candidates are unlikely to move for the same (or lower!) salary
It’s very rare that candidates would leave a job to go to a new one with the same or lower salary. It could happen if they were very unhappy in their current role or were looking for a complete change of career. But for most candidates, part of the motivation behind looking for a new role is to earn more.
Millennials expect transparency
Millennials – anyone born between 1981 and 1996 – want to know what they are going to be paid when they’re considering applying for roles. This generation has a greater willingness to discuss what they’re paid with parents and friends, compared to previous generations.
Given that some estimates suggest this generation will make up to 75% of the workforce within the next 5 to 10 years, it’ll become increasingly important that this openness is reflected in the recruitment process.
It avoids wasted time
As the recruiting employer you won’t want to lose time interviewing candidates if the salary turns out to be a deal breaker. Candidates’ time is important too and they will be cautious about taking time off work to attend interviews if they have no idea what the salary could be.
Yes, you might lose some candidates at the start of the process if the salary is either too low or too big a leap, but that’s better than leaving salary discussions until the face-to-face interview stage, where you will end up losing the candidate anyway.
There can be exceptional reasons why you simply cannot put the salary onto a job advert and that’s fair enough. But in most cases, including a salary will enable you to attract more great quality candidates, manage expectations effectively from the very start and help you come across as an open and transparent employer.