News broke recently that it may become a legal requirement for salary information to be shown on job adverts moving forward. We want to talk to you as Founders and People Leaders about what this may mean for you and help you get prepared. Talking about pay can sometimes feel a bit awkward, but as always, the Thread HR team have got you.
The Government has raised this change within the equal pay consultation as a way to tackle pay discrimination and strengthen equal pay protections. The announcement of this becoming a possibility has provoked different opinions and questions from clients, and it’s really got the Thread HR team thinking too.
Would you test-drive a car without knowing the price? Would you instruct a builder without knowing what they charge? In most scenarios, no. But quite often, people are expected to apply for roles without knowing if the salary would cover their bills, let alone their lifestyle! Putting it like this makes you question why salaries haven’t always been openly advertised. But as always, there are two sides to every story.
Advertising salaries on a job advert from the get-go has the potential to streamline the recruitment process, as only those who are satisfied with that salary bracket will apply. Fewer applications to review surely means a quicker process for everyone involved. A quicker process should result in a better candidate experience.
Transparency and trust are fundamentals in a working relationship. As such, an employer being upfront about any element of the job role, whether that be pay or what they really mean by ‘flexible’ working, is a great way to start a working relationship.
Advertising terms and conditions upfront and being open to discussing these within the recruitment process mitigates the risk of misunderstanding or disappointment at the job offer stage.
At this point, we’re thinking surely this can only be a positive step forward in aligning salary expectations and ensuring fairness and equality?
However, we know that there can still be a sensitivity around what colleagues earn. Maybe as the employer you are worried that advertising a salary will cause some whispers internally, and maybe you’re right! The question here should be, are your current employees paid fairly?
Whilst keeping salaries private may prevent comparisons being made, it is not a cure for unequal pay. Equal work should mean equal value (that bit is the law!), ensuring colleagues are rewarded fairly and consistently.
If finding out about this, makes you somewhat nervous, that’s okay. We can discuss why together and have time to put a plan of action in place to get things right!
If you do not currently advertise your salaries, regardless of any change in legislation, we recommend you DO put your salaries on adverts moving forward.
A good place to start would be to:
- Carry out some market research, to see if your current salaries in line with that specific market sector, and your location
- Review your internal salaries to identify any gaps or outliers already within your business that could cause some sensitivity or issues
- Review your job adverts, do these include all the other important details
- Be confident in your salaries and other elements of your benefits package.
Remember, benefits can be just as important to some candidates as salary. Whilst additional benefits or perks should never compensate for unequal pay, make sure you highlight what else you have to offer alongside the salary. Flexible working, training allowances, an Employee Assistance Programme, and a long list of others, can all add real value.
As a founder-led business, you may not yet be able to compete with larger businesses on salary, so don’t forget to showcase the other great things that make working for your business attractive. Proximity to the founder, range of experience available, and so much more!
We could keep talking about this topic for much longer, (and we might in the future!) but we’ll leave it there for today. At the core, it is all about ensuring equal pay for everyone, and that is something which we will always champion.
Don’t let this news panic you into thinking you are not paying people enough. It is about ensuring you are paying people fairly.