Let’s be transparent with Salaries #ShowTheSalary

Posted by | August 26, 2021 | Employers, Recruiting tips

Let’s be transparent with Salaries #ShowTheSalary blog header

By Julia Capon

Over the years, I have had a lot of conversations with frustrated job seekers around salary transparency. I’ve always advocated that in the for-purpose sector we need to be more transparent and stop wasting both parties time by not listing salary bands. Research shows that not including your salary in a job advert can perpetuate pay inequality, and we’re passionate about closing pay gaps. Yet, we haven’t made the salary field compulsory on Do Good Jobs.

From next week, that’s changing!*

*Current job adverts without a salary will remain on the site until their expiry, but all new listings from next week will require a compulsory salary field.

We believe in living our values at Do Good Jobs.

We are dedicated to helping the for-purpose sector – both individuals and organisations –  to thrive, and have signed the global pledge and movement to #showthesalary – a simple ask to tackle pay gaps in the charity sector.

Last year, this global social media campaign was born to encourage organisations in the charity sector to be transparent about salaries when recruiting. They don’t just reach out to organisations – they publicly called charities out, asking them to revise job adverts, getting them to remove “competitive” or “depending on experience” from their listings and instead show what they are actually willing to pay (see what we mean by taking a look at the #showthesalary tag on Twitter).

 

Do Good Jobs got called out too!

As soon as we were made aware of this movement, we started looking at ways to make changes to our system to make a compulsory salary field going forward. We’ve ironed out some technical challenges and are now ready to release this change on 1 September.

Fundraising Institute of New Zealand was the first to make this pledge here in New Zealand and we applaud their leadership and action!

If you and your organisation want to pledge to the #showthesalary find out more at showthesalary.com.

 

Why does showing the pay matter?

There are so many reasons. See Showthesalary.com for a comprehensive summary. I have summarised these in brief and added some of my own local knowledge below.

1. It wastes everyone’s time.

Applying for a job is time-consuming. A good candidate will put together a relevant CV, personalised cover letter, and research the organisation before applying.  Finding out in the final stages of the process that the salary doesn’t match expectations makes it worse. Stop wasting job seekers – and your – time. Time is valuable in the for-purpose space.

2. Reduce the discomfort for jobseekers.

Asking for salary information can be uncomfortable for job seekers.  Recently, someone who was in the market to change jobs and who has an outstanding reputation in the for-purpose sector, reached out to me as a job listing on Do Good Jobs didn’t have a salary range. They wanted me to ask the organisation to indicate the salary.  They didn’t want people to know they were looking for something new (our sector is small!), noted it was a diversity issue, and simply needed to know the salary was enough to support their whānau as the primary income earner.

We hear from job seekers – particularly women – that they are worried that ringing the employer to ask what the salary is might damage their chances of success. And if you do share this information with people who ring, why not list it and save yourself time and even the playing field for all. A phone call could also be a barrier to some candidates, and restrict diversity – adding another fence to jump.

The same goes for asking candidates about their salary history. You should pay them based on their skills and experience, not what their last job paid them. Read more on this in this Harvest Business Review article: “Stop Asking Job Candidates for Their Salary History “

3. Not showing the salary is discriminatory.

When you show the salary you stop perpetuating pay gaps, reduce discrimination and ensure everyone can access a fair wage.

“Often, when salaries are hidden, they are based on current salary. That means that those who are currently under-paid for their work stay that way. There is ample evidence that this is a discriminatory process. For example, when asking current/previous salaries was banned, pay increased for Black candidates by 13% and for women by 8%. We also know that substantial pay gaps exist for other groups, such as candidates with disabilities and the LGBTQIA+ community, meaning that asking current salary discriminates against these groups too.”Show The Salary

Locally, this pay gap and divide was also highlighted in the sector in the Fundraising Institute of New Zealand + Execucare NZ Fundraising Salary Survey 2020:

“One continuing frustration for many in our sector is that although women make up 83% of the workforce there is a significant discrepancy between the median salary for men of $95,000 and $80,000 for women.”

4. You’ll get more applicants!

Research shows that you’ll get more applicants when you show the salary on your job ad. CharityJob shared that people saw twice the number of applicants if you show the salary.

5. You live your values.

If you have organisational values that include “respect, fairness, inclusion, transparency”  then live those values and #ShowTheSalary. Keeping salaries a secret doesn’t align with these values.

6. You know what you can afford right?

You probably had to get board approval or your staffing budget set, this may have involved some simple benchmarking on this role, so you know what you can and cannot pay. A range that will depend on experience is completely fine (we suggest a range of +/- 10% of the middle range). So share this.

7. Gain trust.

We want do-good organisations to thrive and find the best people, and part of that means being up-front and honest about what you have to offer.  Being transparent with salaries ensures fairness and builds trust from your current and prospective employees.

8. Avoid being called out.

There’s a growing expectation from candidates that organisations will #ShowTheSalary, and an increasing number of advocates calling people out through #ShowTheSalary for those not practising this level of transparency. Not sharing the salary could impact you negatively too.

9. You’ll join a growing movement looking to make the sector a fairer and more equitable place.

Hundreds of organisations how now signed the pledge to #ShowTheSalary when they recruit, You can join them and sign the pledge by completing this form. As a sector we need to make changes to the way we recruit, and that means being more transparent and more open.

10. Don’t be left behind.

This movement is gathering momentum. Government organisations, tertiary institutes and more are already leading the way on transparency around pay bands and brackets. Gen Z and Millenials expect companies to be open and honest about salary (See more here). Be part of the change!

 

More transparency in salaries from next week…

As of 1 September 2021, we are rolling out changes to make salaries transparent on Do Good Jobs.

Our new mandatory salary field is now going live from next week.  This will replace our optional salary bands that employers could select in the past. We will be removing these salary bands from our search and placing the salary front and centre on the job listings.

As many of our vacancies are also part-time roles, there can be confusion over pro-rata rates versus the actual annual salary.  This open field will allow employers or recruiters to detail salary ranges and expectations – hourly rates or per annum. “Competitive” or “Negotiable” will not be accepted without an indication of the salary band.

If you do notice anything that doesn’t look right, please point this out to our team by emailing [email protected] We are a small team (two full-time equivalents) and it can be difficult to audit and keep on top of every advert in a timely manner while working part-time hours. We appreciate your support!

Read more great resources from Show The Salary here:

https://showthesalary.com/resources/

If you have concerns about our new #ShowTheSalary policy, reach out to us – we’re always happy to chat and explain why we believe in this important step to pay equity.

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2 Responses to “Let’s be transparent with Salaries #ShowTheSalary”

  1. Comment made by kdp on Aug 26th 2021 at 2:46 pm:

    Bravo! Way to help lead the way, DGJ!

  2. Comment made by Do Good Jobs on Aug 26th 2021 at 3:06 pm:

    Thanks so much! We are following in the footsteps of a few others – including the Fundraising Institute of New Zealand who was first off the mark here in NZ – plus many others globally. We are so happy to be backing this movement, and living our values! 🙂 – Julia

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