Pay it Forward – Why Salary Transparency is the Future of Recruitment

Salary transparency is more than just a trend—it’s becoming essential for modern recruitment. In my recent interactions with candidates, many have asked about salary before discussing the role itself. This isn’t a negative reflection on them but a clear signal that we need to rethink how we present roles. In a world where job titles vary wildly, transparency about pay helps both candidates and employers create alignment from the outset.

A New Reality: Clarity Amidst Inconsistent Job Titles

Job titles today are no longer straightforward. What one company defines as ‘mid-level’ could be senior elsewhere, making it harder for candidates to understand if a role fits their experience and financial needs. Transparent salaries empower candidates to make informed decisions and prevent wasted time—for both parties—on mismatched expectations.

Salary as a Filter? It’s Time to Focus on What Matters

Some companies ask candidates what they currently earn as a way of filtering them. But past pay isn’t always relevant. What if a candidate has been underpaid for years or stayed loyal to one employer at the expense of higher wages? True suitability lies in understanding why a candidate is exploring new opportunities—whether they seek better work-life balance, more meaningful work, or a change from management to individual contribution.

Building Trust: Salary Transparency as a Cultural Asset

Many employers worry that advertising salaries might upset existing staff. If transparency causes friction, however, it may indicate deeper cultural issues. True transparency is a cornerstone of trust, and companies that embrace it foster healthier, more engaged teams. Employees—both new and existing—want to feel valued and fairly compensated. Openness benefits everyone.

A Legal Nudge: How the Fair Work Act Supports Pay Transparency

The Fair Work Act has already made strides toward transparency by allowing employees to share or withhold information about their pay. As of 7 December 2022, these new rights promote openness and prevent companies from restricting conversations about salaries. But I believe this legislation should go further—companies should be required to advertise salary bandings for every role, both internal and external.

The Business Case for Advertising Salaries

Advertising salary ranges isn’t just good for candidates—it benefits companies too. It helps attract candidates aligned with the company’s budget, reducing negotiation hurdles and improving hiring efficiency. Salary transparency also enhances a company’s reputation, setting it apart as an employer that values fairness and openness. In a competitive market, these qualities give organisations an edge in attracting top talent.

Conclusion: Pay Transparency is a Win-Win

Transparency in pay isn’t just a nice-to-have; it’s essential for building trust and fostering fair recruitment practices. It allows candidates to focus on the role and culture rather than getting stuck in stressful negotiations. At the same time, it benefits employers by attracting candidates who align with their pay structure and values.

Salary transparency is the future of recruitment. It’s time for companies to embrace it—doing so builds trust, reduces pay gaps, and creates better experiences for both candidates and employees.