Does Publishing a Job's Salary Affect the Number of Referrals?

Short Answer:

No - referrals per job are virtually identical on Draftboard regardless of whether the salary is shared or not.

Longer Answer:

Some states in the US now require companies to post salaries (though most still don't), so companies are increasingly doing that. Currently, about half of the roles on Draftboard have the salary posted.

One challenge is that companies are often open to candidates from different regions, and pay differs across regions. For instance, mid-level iOS engineers' compensation across Austria, Belarus, and Croatia, the market compensation was around $65,000. For the same position in NYC, it was $150,000!

If you're a company hiring remotely or in different locations, your options are generally not great:

• Post a wide range: This is legal but not very helpful.
• Don't post and miss out on great candidates: Many candidates might skip applying if the salary isn't listed.
• Post a range that's applicable only to certain geographies: This can be misleading to people applying from other locations.

Still, the world is moving in this direction - both top-down by regulation and bottom-up by candidates (some won't even apply if a range isn't listed), so companies need to adapt.

As of now, at least in Draftboard's small dataset, we don't see that salary is a major influence on referral volume.

(Side note: We are completely aware that this data is likely influenced by other variables, but it's interesting enough to share on its own)

The Data

We recently analyzed the number of referrals per job listing on Draftboard. Here’s what we found:

?The data shows that whether a job listing includes a salary or not, the number of referrals remains almost the same. This suggests that candidates are interested in job opportunities on Draftboard regardless of salary visibility.

Why Is This Important?

Understanding how salary postings affect job referrals can help companies make more informed decisions. Here are some key takeaways:

1. Compliance with Regulations: Companies need to stay updated with state regulations regarding salary postings. This can help avoid legal issues and improve transparency.
2. Adapting to Market Trends: As more candidates expect salary information, companies should consider including it to attract top talent.
3. Strategic Posting: Companies can experiment with posting salaries in certain regions or roles to see if it affects the quality of candidates.

What Should Companies Do?

Given these insights, here are some recommendations for companies:

1. Stay Transparent: Whenever possible, include salary ranges in job postings to meet candidate expectations and comply with regulations.
2. Understand Regional Differences: Be aware of how salary expectations vary by region and adjust postings accordingly.
3. Monitor and Adapt: Continuously monitor the impact of salary postings on referrals and adapt strategies as needed.

Conclusion

While our data suggests that posting salaries does not significantly impact referral volume, it's essential for companies to stay proactive. Transparency in salary can build trust with candidates and help companies stay ahead in the competitive job market.

We’ll continue to share more interesting insights from Draftboard. Stay tuned!