As a female founded and managed firm, equity is always top of mind for us. The topic of equal pay has been a hot one for decades and continues to evolve. Now, in 2021 when equity is finally becoming a real conversation in so many ways, we wanted to share our thoughts on equitable pay when it comes to salary transparency in the hiring process.
When we manage a search for a client, whether new or repeat, we always have a conversation about the salary or salary range for the position at hand. About 25% of our clients show initial hesitancy around posting the salary or range on a job posting. The reasons we hear vary, but oftentimes clients are trying to avoid a problem with current team members who might be earning a lower salary for similar work. If this is the case, it might be time to reevaluate your pay scale to determine if it is equitable and seek out an opportunity to even things out.
We always encourage salary transparency with our clients. Here are the top 3 reasons why:
- Salary transparency helps ensure a diverse, equitable, and inclusive search process and candidate pool. Disclosing this number upfront ensures that every member of the candidate pool is eligible for and can expect the exact same salary range despite gender, gender orientation, race, age, ethnicity or other demographic factors. On average, women of all races earn just $.82 for every $1 earned by men of all races. The wage gap for women of color is even more pronounced, with black women earning $.62 and Hispanic or Latino women earning just $.54 for every $1 earned by white men, often in similar roles. Salary transparency helps reduce gender, age, and racial bias because the range does not vary depending on (often incorrect or unfair) perceptions about what candidates need and/or deserve – it levels the playing field for all.
- It is a time saver! Whether you are conducting the search yourself or are paying a firm to manage your search, wouldn’t you rather every potential candidate enter the process knowing what the salary opportunity is? If not, we waste precious time on conversations with candidates who can be expecting tens of thousands of dollars more than you are willing to pay. Communicating the salary range in advance saves time on the front end and encourages qualified candidates within your range to apply.
- It helps attract great talent. We have all heard the saying that “it is easier to find a job when you already have one.” This is not always the case, however, if a potential candidate is already employed and sees a job posting without a salary range, they are less likely to apply. If the salary range is listed, the organization removes one of the key barriers to entry and creates an incentive to learn more. It also communicates a culture of fairness and transparency. If your organization is afraid to disclose a salary range, what else could you be hiding?
If your organization has not been transparent about salary in the past, not to worry. It is not too late! Join us in pushing forward and making salary transparency a common practice – your employees will thank you and your future employees will be top notch. If you are considering bringing on a new team member, reach out to email@example.com, Consultant, Executive Search to discuss your needs. We are happy to support your search or answer any questions.