Money is one of those subjects that people in polite society don’t discuss. Companies sometimes think of themselves as polite society and applicants and employees who inquire about compensation as impatient and boorish.

Let’s be honest about this though. Most people work because they have bills to pay. Yes, they want to work at something they enjoy and find fulfilling, but compensation is a major factor in employee satisfaction.

An article on LinkedIn shared that Microsoft has begun sharing salary ranges for open positions and the likely outcome is that other companies will follow suit. LinkedIn data shows that postings containing salary information are 44% higher than last year.

Worker Friendly Change

This trend is seen as worker friendly, and will make it easier to conduct a job search. A candidate will not waste their time applying for a position where the salary is not a fit.

This article also states that this can help reduce gender and racial pay inequities. Having a published pay range from the company can show women and minorities what their job is worth and help them in pushing for equal pay. Real time market data, provided by hiring companies, provide leverage to job seekers and employees already on the job. 

What about Employers?

Hiring managers will see fewer communications from seekers who aren’t good candidates. Those who expect a different salary won’t apply for the position and time can then be spent on the candidates that are a better fit.

Employers need to handle salary transparency carefully to avoid creating dissatisfaction among current employees who may find that the new hires are being paid more. Make sure your employees understand your compensation policies and perks. Job candidates trust employee reviews about a workplace, and you want those in your employ to speak positively about their experience working with you.

It’s About More than Money

While it is true that it’s about the money, it isn’t just about the money. Companies that can’t afford top-dollar salaries offer other attractive benefits. Review your compensation policy. Do you have other perks that make you stand out? Maybe you offer unlimited vacation time, a gym membership, a particularly great flexible work policy, or an awesome location. Play up the benefits that make your company a great place to work. Train the hiring staff to share these benefits with candidates.

Nearly 96% of job candidates say that transparency about compensation is essential. Employees want salary transparency and believe that it is good for employee satisfaction. There are more job openings than people to fill them. If your organization wants to attract and retain the right talent, then you need a fair compensation policy and you need to communicate that to job share it with your employees and job seekers.