New findings have revealed four in five job hunters are less likely to apply for a role if a salary isn’t specified, calling for more transparency in regard to pay when it comes to recruitment. The survey carried out by Reed showed 78% of people currently looking for a job would be deterred from applying if the salary wasn’t detailed. A total of 2,250 employers and hiring managers were polled, who were asked about how salary transparency is impacting labour shortages. The findings also revealed 22% of people will only apply for a job where a salary is specified. However, 44% of managers said they didn’t include salary details as part of job descriptions when advertising a position.

Government involvement

The findings follow on from the government’s plans to boost pay transparency with the aim of ‘levelling up’ opportunities for women. The plans will mean employers will be required to detail salary info on job adverts, and no longer ask for salary history from applicants. This is a welcome move, according to Reed managing director, Simon Wingate, who commented: “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”, he said. This was echoed by Recruitment and Employment Confederation CEO, Kate Shoesmith, who said of these findings: “This research clearly shows that by not including salary information in a job advert, recruiters and employers alike are shooting themselves in the foot. Advertising a role with a salary range means breaking the cycle of lower earnings among women and people from disadvantaged backgrounds, as it avoids basing their earnings on previous salaries and focuses more on the value of the role,” she said.

Including salary info = more applications

The Reed findings also showed that 42% of hiring managers said including salary info led to a rise in applications, whilst 38% said it enhanced relevancy of applications and 35% believed it was a time saver during the recruitment procedure. Wingate went on to say: “Not only will you generate more applications, you’ll also be able to attract from a wider talent pool and avoid any negative impact to your employer brand.”