By Kurt In Blog, Career Development, Job Search On June 14, 2023
I like to write things that make people think or are pleasing to read. Typically I try not to write things that make people unhappy or angry (at me or generally). However there’s this one topic that has been bugging me for years. Everyone talks about it. I see three or four articles per week about it with tons of comments but it’s all from one side and, from my perspective, seems mostly misguided.
This little column, article, or opinion piece (however you want to call it) is my contribution to the conversation — because I just couldn’t hold it in any longer. Someone needs to explain and might as well be me!
Should salary ranges be posted for some jobs? Like hourly jobs, which might be helpful? Or when the range is very narrow. Probably. Should salary ranges be posted for all jobs? No.
People get worked up talking about compensation. Job seekers often feel uncomfortable revealing their salaries in applications or when asked in an interview. Employers are reluctant to publish salary ranges because there are too many variables. And yet, everyone wants to talk about it! In fact, most people want to talk about it so much, it’s the first thing they ask about. As a recruiter I get this question constantly and that’s okay, compensation is a critical component of any job. (Gratuitous car photo for click bait.)
I’m not sure this is the popular opinion but I’m kind of on the company side of this. I don’t think it is always helpful for a company to publish the salary range for a position. Here’s why: Salary ranges can be huge. For example, ranges like $95k – $140k in base salary are pretty common for some of the “manager” level corporate jobs I work on. Why is there such a spread?
No two candidates are the same so it is impossible to compare them directly. People are unique, bring different experience, and require different levels of compensation in order to be attracted to a position. For jobs like the “manager” level job illustrated above, an employer might interview three very qualified candidates at very different salary levels, for example:
Any of the three could do the job effectively, though likely in different ways and even with different results. Would the same offer work for all three? The job is the same so why shouldn’t the offer be the same? What should they employer tell Candidate A, B, and C when they ask what the job pays? The same number wouldn’t be fair, because for Candidate A, the possible increase would always be larger than what Candidate B or C could get.
Street psychology will tell you that people only hear what they want to hear, so if an employer just provides the salary range as an “equal answer” to all three, most people will fixate on the upper end. This makes the range itself kind of useless and sets up everyone for failure.
Why should candidates not feel too exposed when asked about their salaries?
When I’m asked that question by candidates I’m recruiting, I typically reply by stating that the employer, my client, understands that in order to make a move, candidates require an incentive or motivation, frequently in the form of direct compensation, and that they want to make the job worthwhile for the right candidate. However, to really answer the question, I need to understand what the candidate is currently earning. Then we can both figure out if it is worthwhile to proceed.
People get upset when you ask them sometimes.
You know what you’re earning. Maybe you feel good about it, maybe you don’t. No matter what, in most cases, you want to do better and you’re worried that if you reveal your information too quickly, you will hurt your ability to negotiate later. This isn’t correct but it is reasonable.
You also want to know if it is worthwhile to apply before putting in the effort. However, unless the salary information is actually published, you may never know the whole range for any position. So what do you do?
You can manage some of the unknowns by taking charge and doing some homework. First, are you in the right place? How well do you know the market for the jobs you’re seeking? Have you done your homework? It’s not hard to get a sense of what a job might pay by doing a little research on sites like Glassdoor, Salary.com, Indeed, or Payscale.
The rest of the unknowns? Here’s where some basic process knowledge can help you understand why it’s okay to reveal your salary during the application process and why it’s not really necessary for the employer to do the same.
So what’s the answer? It depends. (It really does.) What do you do? Don’t worry about it. Remember #6.
Articles:
https://www.refinery29.com/en-ca/2021/07/10606863/job-post-salary-range-transparency
Kurt Schmidt is the author of “Modern Job Search” and the President of Converging Point, an executive search firm focused on supply chain and strategic sourcing jobs in manufacturing and energy.
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