Join HR Datahub’s campaign to make pay transparency law
The global labour shortage and inflation have increased organisations’ demand for a solid and sound reward strategy.
Talent now has the advantage over recruiting companies. What’s more, talent cares about fundamental issues such as diversity, equity and inclusion (DEI). Wherever you look, organisations face the same challenge: attracting and retaining talent.
Of course, you could hire a leading agency to brainstorm PR campaigns to temporarily boost your employer and attract talent. But would this suffice? To stand out and establish a strong and durable employer brand, you must address DEI, starting with pay and job ads.
When scanning job ads, job seekers increasingly pay attention to whether or not the salary range is displayed. They don’t want to waste their time and want to know upfront if an advertised job meets their monetary needs. Additionally, research suggests that transparency in pay significantly reduces the gender pay gap (GPG).
Reducing the gap
After analysing data from the Danish public sector, where pay information is freely available, the Journal of Labor Economics found salary transparency can reduce the GPG by up to 38%. Researchers found that the GPG was smaller in the public sector than in the private sector and concluded that it was partly due to the availability of pay information.
Glassdoor’s Global Salary Transparency Survey found that companies that adopt salary transparency have smaller GPGs than those that do not. It also found that companies with more women leaders tend to have smaller GPGs.
A report by the World Economic Forum found that higher salary transparency helps in closing the GPG. The report identifies several factors contributing to the GPG, including occupational segregation, discrimination, and unconscious bias. The report recommends that companies increase transparency around pay and promotions and that governments should require companies to report on their GPG.
All in all, research on the topic is factual and plentiful.
Overcoming corporate fear
But closing the GPG alone doesn’t seem to be a motivating enough factor to overcome the many fears companies harbour regarding disclosing pay.
Your job ads are, in the end, ads for your company. In today’s climate, it’s become essential for organisations to use job ads to signal their commitment to transparency and equity.
By including salary information in job ads, companies can show potential employees that they are committed to being fair and transparent about compensation.
Displaying salary in a job ad not only helps companies create a fair and equal work environment but also helps them take the necessary steps to build a stronger employer brand and keep attracting and retaining top talent tomorrow.
Whether you care about employer branding or equality, sign our petition to make it lawful for every job ad to show the salary range.
Supplied by REBA Associate Member, HR DataHub
HR DataHub is your go to tool to make sure all your reward decisions are data backed.
