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5 reasons salaries should be transparent

5 reasons salaries should be transparent
Please apply with your CV and expected salary!

Let's face it, no matter how much you love what you do, in the end we all work for money - which is absolutely fine. Unfortunately the job market often tries to hide the salary range. This is no surprise, every company wants as many applicants as possible, and maybe some people will even join for a relatively low offer.

However I am a firm believer that not indicating the salary range can be counter-productive, and in the long run even have negative consequences. Without further ado, let's get right into it:

1. It saves time

Imagine Janet. Janet is a very good developer who is looking for a change. She notices a job ad for a Backend Engineer role at AwesomeCorp Ltd. The job description said to apply with a CV and a cover letter, so she does, and luckily enough she gets invited to a screening interview. Janet uses her lunch break to talk with the recruiter, and unfortunately they find out that the salary range what Janet had in mind does not match with the company's budget, so they thank for each others time and part ways.

This is coming from first-hand experience, this exact situation happened to me countless times when I was looking for a new job. Some companies even wait for the last round of interviews before they tell you they have a fixed salary for the position.

In these scenarios all participants waste their time. Job hunters usually apply to multiple open positions, so making time for each interview during the day can be quite a bit of headache. This could be greatly reduced if the job descriptions indicated the salary ranges, so at least there is one less dealbreaking factor.

Not to mention the recruiters, who could also save time if they only interview candidates who are aware and satisfied with the salary budget of the position.

So it is a win-win situation really, just add the salary range to the job description. 💸

2. It reduces conflicts

In companies that make you hide your salary there is always that itch. You wonder if you make the same as your colleague who is in the same position as you. Do you get fair compensation, or maybe the salary negotiation just not went as expected.

I have seen cases where developers who were essentially doing the same job were compensated drastically differently. Eventually - since people who work together usually chat - people found out, and there has been several resignations, because the company could not raise everybody's pay, and it just came off as not fair.

I believe companies should try to make an effort to create a transparent salary system. In the previous example, sure, maybe hiring someone for a higher pay seemed acceptable because it was a one-of, but in the long run it did more harm than good.

3. It motivates people

People are motivated by money. Again this is something that sounds too materialistic, but this is just the way things work.

Having a clear role-to-salary system can make people set reasonable goals. For example GitLab is using a Compensation Calculator to determine each candidates salary based on their experience, location, and role. It is clear what you have to achieve to move to the next salary level.

4. It catches the eye of the candidate

Luckily as a developer there are countless opportunities and positions available nowadays. Companies try to catch the candidates' attention with the job description, and what other method to use then showing your competitive salary.

Putting your pay ranges in numbers, instead of just saying "generous compensation" goes a long way.

5. It is becoming more and more mandatory

Google recommends adding salary to the job description, and might not index your post if you do not.

In some US states it has become illegal not to disclose the salary range in the job post. For example Colorado is taking measures, but Spain is also going in this direction.

Whether the company discloses the salary or not is their decision, and we need to respect that. The market is slowly moving toward transparency, and we will be here to empower that. 🙂

Our goal at remotextra is to create a transparent job market. Every ad includes the salary range, and we aim to give the best experience for the job hunters.

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