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What is Salary Transparency and Why is it So Important?

by | Sep 21, 2022 | Hiring Tips | 0 comments

By Eric Waldowski

Not sure how to advertise your pay plan? Candidates are looking to compare opportunities while scrolling the job boards now more than ever. Make sure the right candidate takes the time to read and potentially apply to your ad.

Indeed, among other job boards, are changing course to ensure that the employers advertising through their platforms are following new state laws related to Salary Transparency. All this means is we need to make sure the candidate has a very clear understanding of how, when, and how much they will be compensated for the role they are applying to.

If you have ever posted a job using the IdealTraits platform, you’ve seen the notice that you must justify your salary in the benefits section before posting a job. Sure you can mention the position is Base Salary plus Commissions, or that you offer Base Salary based on Experience, but true transparency is about being more specific, and this can give you a leg up against the competition on the job boards.

Candidates want to know, in detail, what they are going to make while working for you. Candidates want this salary transparency so much that Indeed now requires a salary to be listed in a job posting. If you do not include a salary in your ad, Indeed will estimate an expected salary to advertise along with your job. To learn more about these changes to Indeed’s requirements and what that entails, check out this blog post and Indeed’s announcement.

When posting an ad, it is crucial to explain in the body of the ad the when, how, and how much the candidate can expect to be paid. If, for example, we list a salary of $30-40k Base Salary, but pay commissions on average of $2500 a month, we need to be clear about this payment plan. In the salary range, we list the $30-$40k annual; unless the Candidate is guaranteed pay of more than that, on a recurring basis, that is the “Salary” per the job board guidelines. In the Benefits section and Job Description, we will advertise the additional potential commissions and bonuses.

For example “Bi-Weekly base pay with a $30-$40k base, dependent on experience; Top earners make over $2500 a month in additional commissions; Our top Earner last year made over $100,000 in total commissions and base pay”

A Candidate who reads this will have a very clear understanding of how, when, and how much they can expect to earn, based on their performance with your agency or business. The most important step in making sure that the Ideal candidate looks at your ad (and applies when they like what they see) is to advertise your competitive pay structure in a simple and transparent way.

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