September 15, 2016 8:00 AM
In the recruiting world we have heard it all before…
- “I don’t want to post a compensation range because everyone will expect the high end.”
- “I don’t want my current employees to know what others are paid.”
- “I don’t want my competitors to know our salaries.”
- “Other postings online do not include a compensation range, so why should I?”
Although these are common thoughts for all business owners, it can be directly affecting your candidate pool numbers. In fact, SMART Recruit Online found that job advertisements with a compensation listed increased the total number of candidates by 30 percent. Small and mid-sized companies are at a disadvantage by not posting a wage since larger companies have known salary and hourly rates.
The Benefits of Listing a Compensation Range
If you post a compensation range, then you are more likely to attract candidates not yet earning your listed range. When it comes time for an interview and compensation negotiations, you will have more opportunity to agree upon a reasonable pay based on the candidate’s experience. When posting a pay range, adding text like “commensurate with experience” will give applicants a realistic idea of what pay relates to them.
In fact, wide pay ranges can lead to more applicants in different stages of their career. If you have an open position in a field with a struggling work force, then a range with a low and high end will allow more room for trainable new hires. You will be able to weigh your options when deciding if you want to hire based on experience and commit time and effort into training.
According to a study by Ongig, the average candidate spends approximately 55 seconds viewing text ads. Only seconds determine if you will grab a candidate’s attention. Having the most important information in your ad can make or break your chances of receiving applicants. Not to mention, you will waste less time getting your applicants all the way to the interview stage to learn that they are out of your pay range.
Score Top Talent at the Right Price
Group Management Services offers national and local compensation studies for businesses looking to hire. We also provide interview and compensation negotiation coaching so that you score the top talent at the right price. Our recruitment staff is able to create custom job ads based on your needs and other effective recruiting strategies. Contact GMS today for more information about how our employee training and recruiting services can help you find the right employees.