Why Be Open To Salary Transparency
“Honesty and transparency make you vulnerable. Be honest and transparent anyway.” –Mother Teresa
As a hiring manager, one of the most important decisions you make with your ERP hiring decisions is determining an employee’s salary. For many years, companies have kept salary information confidential, but there has been a recent shift towards being open to salary transparency.
Salary transparency means that employees have access to salary information within a company. This can include the salary ranges for positions, individual’s salaries, and bonuses payout plans. Perhaps your accountant is interested in becoming an Acumatica ERP Implementation Consultant. Transparency can help them determine what the position is worth and if it’s a smart fiscal move for them. Being transparent with salaries can help employees with career growth and ensure that they are paid fairly, based on their skills and experience. Here are some benefits of being open to salary transparency as a hiring manager.
Attracting Top Talent
When potential employees are considering a job offer, salary is a significant factor in their decision-making process. If you’re open about the salary range for a position, it can help you attract the appropriate talent. Offering a salary for a junior level experience candidate, but expecting 7-10 years of experience will not get top talent knocking down your door. Transparency can also help build trust between employees and the company. One in six employers saw a rise in applications after implementing pay transparency initiatives that disclosed salary in job postings, a 2022 Wilson Towers Watson survey found.
And more companies are following this trend. This dramatic increase in qualified applicants can be a pretty motivating factor to adopting a salary transparency policy. In fact, half of the survey respondents said they already have plans to be more transparent about salary in the year ahead.
Here at DyNexus, we produce an annual ERP Salary Guide as a reference for employers and hiring managers like yourself to have a look at what the market trends are predicted to be in the coming year. You can view our 2023 Salary Guide by clicking here for a closer look at some of the mid-market trends we found.
A Better Hiring Process
Salary transparency can also simplify the hiring process. When candidates know what the salary range is for a position, they can decide if the job is right for them. This can save time for both the candidate and the hiring manager.
According to this article on LinkedIn salary transparency can also increase recruiter productivity. Compensation is the top reason candidates decline job offers. Being transparent about pay early in the recruitment process can help eliminate job seekers who would later turn down an offer due to pay. This allows your recruiters to focus on your most viable candidates, increasing your team’s efficiency and productivity.
Here at DyNexus, knowing what the salary range is for a new job listing is one of the first pieces of information that we get from our clients. After 25 years of being in business, we know just how important a salary range is to our potential candidates. Don’t let good talent get away from you because they don’t know what you are willing to pay.
Company Culture
Pay transparency can improve the employee experience by creating a sense of fairness that boosts loyalty and motivation. Clear and candid communication about compensation encourages a culture of fairness; pay transparency laws are designed to inspire both fairness and equity in compensation
An article published on the Forbes website included a quote from Michelle Cheng, talent director at British venture capital firm Notion Capital stating “A company that embraces pay transparency conveys so much more than just the salary itself,” she argues. “It’s the subtext in treating everyone like an adult and establishing a culture of openness.”
Because of the positive effects of salary transparency it shouldn’t come as a surprise that more and more states are either implementing, or considering, salary range transparency as a law according to this American Progress website article.
Final Words
Salary transparency can be a powerful tool for hiring managers. It can help attract top talent, increase employee motivation, and simplify the hiring process. If you decide to implement salary transparency in your organization, it’s important to communicate the changes clearly and address any concerns employees may have. With proper planning and communication, salary transparency can help create a more equitable and motivated workplace.
As a hiring manager, trying to find the perfect candidates can be a job of its own. Here at DyNexus our recruiters specialize in finding candidates with ERP experience. Get in touch with us here if you’d like to learn more about our services and what we can do for you.