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Latest NewsRecruitment & retentionOnline recruitmentPay settlements

Four in five applicants more likely to respond to salary information

by Jo Faragher 9 Mar 2022
by Jo Faragher 9 Mar 2022 Salary transparency increases the number and quality of applications, according to Reed.co.uk
Salary transparency increases the number and quality of applications, according to Reed.co.uk

Four-fifths of jobseekers are less likely to apply for a job if they can’t see a salary, according to research from recruitment site Reed.co.uk.

It found that 22% of candidates exclusively apply for roles that show salary, yet almost half of managers (44%) admitted to not including a salary on job ads every time they advertised a role.

The survey results follow an announcement from the government this week that it will launch a pilot where employers list salary details on job adverts and stop asking candidates about salary history.

The Government Equalities Office said it would work with employers to develop and pilot a methodology whereby they can provide pay information at the recruitment stage. Research shows that asking candidates about salary history tends to perpetuate gender pay gaps and inequality.

Analysis of job ads on Reed.co.uk found that those showing salary details attracted 27% more applications than those without. Despite this, 62% of hiring managers thought a lack of salary transparency had no negative impact on applications.

However, a high proportion of hiring managers found that providing salary details delivered more applications (42%), greater relevancy of applications (38%), and saved time in the recruitment process (35%), the recruitment company said.

Simon Wingate, managing director of Reed.co.uk, said: “You wouldn’t shop in a supermarket that doesn’t list its prices, so why should we expect people to sift through job ads that don’t advertise salary? From our research, it’s clear that jobseekers want to apply for roles at businesses that are open about what they pay.

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“Not only will you generate more applications, you’ll likely improve relevancy and save time in the process. You’ll also be able to attract from a wider talent pool and avoid any negative impact to your employer brand. Businesses need to be more open to salary transparency or risk losing out on the best candidates.”

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Jo Faragher

Jo Faragher has been an employment and business journalist for 20 years. She regularly contributes to Personnel Today and writes features for a number of national business and membership magazines. Jo is also the author of 'Good Work, Great Technology', published in 2022 by Clink Street Publishing, charting the relationship between effective workplace technology and productive and happy employees. She won the Willis Towers Watson HR journalist of the year award in 2015 and has been highly commended twice.

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International Women’s Day: Is the gender pay gap bot the price of transparency?

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