Hidden Salaries Are Wasting Everyone’s Time
Nigel Gordon-Johnson
Global Talent Leader | Career Coach | Public Speaker | Author
I don’t know about you but I've wasted too much time applying for pointless jobs throughout my career
Why?
Because the salary range was never disclosed. Even when speaking with the recruiter, getting clear compensation details often felt like pulling teeth!
And I’m not alone in this. In numerous recent surveys, candidates report that their job search is taking twice as long than it should because they’re applying for roles blindly, only to find out weeks down the line that the compensation is a fraction of their expectations.
It’s frustrating, inefficient, and unnecessary.
The Never-Ending Debate: Should Job Ads Include Salary Information?
Having spent over two decades in Talent Acquisition, I can confidently say that one debate never goes away:
Should job ads include salary details, or should compensation remain confidential?
The Case for Salary Transparency
?? Saves Time: Candidates can immediately determine if a role is financially viable for them, reducing wasted applications and interview processes.
?? Builds Trust: Transparency fosters a stronger employer brand and attracts the right talent.
?? Encourages Fair Pay: It helps combat wage gaps and ensures that all candidates are evaluated fairly based on skills and experience, not on negotiation prowess.
?? Attracts More Engaged Applicants: Candidates who apply knowing the salary range are more likely to be genuinely interested and aligned with the role.
The Case for Keeping Compensation Confidential
?? Hiring Flexibility: Some companies want room to negotiate based on the candidate’s experience and skills.
?? Internal Equity Concerns: Employers worry about pay discrepancies among existing employees if ranges are made public.
?? Competitive Positioning: Some businesses fear competitors will use the information to poach talent or undercut offers.
While these concerns are understandable, they often don’t hold up against the benefits of salary transparency. In reality, many companies that refuse to disclose salaries are simply trying to underpay talent and hope to negotiate downward.
Why Hidden Salaries Are Becoming a Red Flag
In a world where candidates increasingly prioritise fairness and transparency, keeping pay a mystery feels outdated and counterproductive. Many professionals now see undisclosed salaries as a red flag, signalling that an employer might be offering below-market compensation.
Furthermore, companies that keep salaries secret often:
Another major issue is the frustration it creates in the job market. Candidates have become more vocal about their experiences, with many sharing their grievances on social media and professional networks like LinkedIn.
Negative employer reviews and discussions about low or undisclosed pay can significantly impact an organisation's reputation and ability to attract future talent.
Additionally, in an era where diversity, equity, and inclusion (DEI) are at the forefront, companies that hide salaries risk alienating underrepresented groups.
Research has shown that pay secrecy disproportionately affects women and minorities, who are more likely to be underpaid compared to their peers.
Transparency helps level the playing field, ensuring fair pay for all employees.
The Future of Pay Transparency
More regions are introducing pay transparency laws, forcing companies to disclose salary ranges upfront. Forward-thinking businesses are already adapting, understanding that open conversations about compensation lead to better hiring outcomes.
Countries like the UK, Canada, and parts of the US have started implementing or debating laws that require salary disclosure in job postings. This is pushing organisations to rethink their compensation strategies and be more upfront with potential hires.
Businesses that resist transparency risk facing legal penalties, loss of credibility, and difficulty in attracting top talent.
Beyond legal requirements, the workforce itself is driving the change. Job seekers now have access to platforms like Glassdoor and LinkedIn where employees openly share compensation data.
Companies that refuse to disclose pay may find their salaries exposed regardless, often in ways they can’t control.
To stay ahead, progressive organisations are not just posting salary ranges but also being transparent about how pay structures work, how raises are determined, and how they ensure fairness in compensation.
Some have even started providing real-time salary benchmarking tools for employees to understand where they stand within the company’s pay structure.
The Impact of AI on Compensation
As Artificial Intelligence continues to revolutionise hiring and compensation, companies are leveraging AI-driven tools to determine salary benchmarks, predict market trends, and analyse pay equity within their organizations.
AI can help standardise compensation structures, reducing bias and ensuring fair pay based on skills, experience, and market data.
However, AI is not without its challenges. If trained on biased data, AI-powered compensation models can inadvertently reinforce existing pay gaps.
This makes it crucial for organizations to audit their AI-driven compensation decisions and ensure they are aligned with fairness and transparency principles.
Additionally, AI-driven salary insights are making it harder for companies to keep pay a secret. With tools that allow candidates to estimate market compensation based on industry data, hidden salaries are becoming obsolete.
Organisations that continue to obscure pay will struggle to compete in an era where information is increasingly democratised.
Ultimately, AI has the potential to make compensation more objective, data-driven, and equitable. But companies must use these technologies responsibly and transparently to truly benefit both employees and the business.
At the end of the day, salary transparency isn’t just about convenience, it’s about fairness, efficiency, and attracting the right talent.
Companies that embrace it will be the ones that win in the long run.
Partner @ Neon River | Technology and Games Industry Headhunter
2 周It's evident that you get better candidate conversion the clearer you are about compensation. Equally as any experienced recruiter knows, you don't want to oversell to candidates on package. Do you keep the salary band wide to account for natural variability in candidate seniority? Every candidate is different and you don't agree compensation at the start of a recruitment process which a job advert represents. It's a thorny issue with no easy, perfect solution. Generally I'm a fan of a "range with caveats" - hopefully leaving the hirer with enough wiggle room for different circumstances, but also giving the candidate a high level view on likely compensation.
Systems Administrator | Management of projects and essential systems | Enhancing business’ disaster recovery capabilities
2 周Very insightful Nigel, I agree with your take. It's definitely a waste of time commuting to an interview, being selected for the position only to be told after expressing your salary expectations that the company cannot meet or come close to your expectations. I agree with Connor, the recruiter should make the disclosure on the first call.
Very good summary, thank you Nigel Gordon-Johnson
Operating in the sweet spot between Customer Success, Implementation and Product within HR Tech/SaaS
2 周I've always struggled with the internal pay equity argument. Why has it become so controversial to pay everyone (not just new external hires) a fair salary for the jobs they're doing?
Nigel Gordon-Johnson