Why pay transparency is becoming a competitive advantage—not just a compliance box to check.
For years, employers were taught to avoid talking about salary too early in the hiring process. The thinking was: keep your cards close, avoid overpaying, and only reveal the number once you’re sure a candidate is “worth it.”
But today’s job market is different. Candidates are better informed, more selective, and increasingly expect transparency from the get-go—especially when it comes to compensation. Laws are changing, platforms are evolving, and the best talent is choosing to engage with companies that are upfront about what they offer.
So, should you post the salary range in your job ads? According to the data, yes—and here’s why.
1. Candidates Are More Likely to Apply When Salary Is Listed
Let’s start with a practical business case: salary transparency increases your applicant pool.
In an Indeed survey, 75% of job seekers said they’re more likely to apply to a job that includes a salary range. That number jumps even higher among younger job seekers—particularly Gen Z—who view transparency as a baseline expectation rather than a bonus.
Indeed backed this up further by showing that job postings with salary information receive up to 30% more clicks than those without. Even LinkedIn’s job search filters now allow users to prioritize listings that include salary ranges, meaning your posting could be deprioritized or ignored if you leave compensation blank.
When candidates don’t see a salary range, they often assume the pay will be low—or that the company is hiding something. That can result in lower-quality applications or missed opportunities with high-potential candidates who simply scroll past.
Example: Imagine a software engineer evaluating two similar job postings. One lists a salary of $110K–$130K. The other just says “competitive.” With no context, the second option is a gamble—and most candidates won’t take that bet.
2. Pay Transparency Builds Trust—and That Attracts Talent
Salary disclosure isn’t just about numbers. It’s about sending a signal to job seekers that your company is fair, trustworthy, and aligned with their values.
According to LinkedIn’s 2023 Global Talent Trends report, 82% of professionals say they’re more likely to apply to a company that’s known for pay transparency. In a world where trust is a top currency in employer branding, this matters more than ever.
When companies are upfront about pay, it communicates confidence in their compensation philosophy and a willingness to treat all candidates equally. It also tells job seekers they won’t need to play guessing games or negotiate blindly—something that disproportionately disadvantages women, people of color, and early-career professionals.
This ties directly into DEI efforts as well. The National Women’s Law Center reports that women who negotiate are more likely to be penalized than men, and underrepresented candidates often undervalue themselves because they lack access to reliable salary benchmarks.
When you lead with transparency, you reduce these barriers and promote equity from the first touchpoint.
3. It Can Actually Save You Time and Reduce Ghosting
One of the most common frustrations in hiring is investing time in a candidate only to find out later that their salary expectations are far beyond what you can offer. It leads to wasted interviews, delayed offers, and awkward back-and-forth negotiations.
By including a salary range upfront, you allow candidates to self-select based on fit—not just in terms of skills, but also financial alignment. This leads to more efficient recruiting, shorter hiring cycles, and fewer surprises down the line.
Research from SHRM indicates that compensation misalignment causes candidates to drop out late in the hiring process, often after multiple rounds of interviews. In a competitive market where top candidates receive multiple offers, companies simply can’t afford to spend time on mismatched expectations.
Example: If you’re hiring for a marketing manager role with a max budget of $95K, and a candidate enters the process expecting $120K+, that misalignment can derail the process at the offer stage—after considerable time investment from both sides.
Posting the range ensures you’re having those conversations earlier and focusing your energy on candidates who are aligned from the beginning.
4. The Legal Landscape Is Changing—Fast
Even if you’re not yet required to post salary ranges, the legal momentum is clearly heading in that direction.
As of 2024, several U.S. states and cities—including California, Colorado, New York, Washington, and others—have passed legislation requiring employers to include salary ranges in job postings. In many cases, these laws apply to companies hiring remotely, which means you may need to comply based on where the candidate is located—not where your company is based.
These laws are part of a broader push toward pay equity and transparency, and more jurisdictions are expected to follow suit. The writing is on the wall: what was once a “nice to have” is becoming a regulatory requirement.
If you’re still holding off on posting salary ranges, you could soon be putting your company at legal risk—not to mention falling behind in the eyes of candidates who are increasingly using transparency as a measure of employer credibility.
Now is the time to get ahead of the curve by building salary ranges into your posting templates and ensuring your internal processes support consistent, equitable compensation.
5. Worried About Internal Pay Discrepancies? That’s a Signal to Reevaluate
One of the most common concerns among employers is that publishing salary ranges will expose internal pay inequities. And that’s valid—because it might.
But here’s the hard truth: if you’re afraid that transparency will raise uncomfortable questions, it likely means there’s room for improvement in your compensation strategy.
Use this as an opportunity to audit and address discrepancies. Conduct a pay equity analysis. Revisit your compensation bands. Align job levels with market data and internal benchmarks. Doing this work now makes you more competitive, more compliant, and more credible in the long run.
Transparency shouldn’t be seen as a risk—it should be viewed as a catalyst for fairness and consistency. And when employees see their company taking that kind of initiative, it builds loyalty and trust from within.
Bonus: It also makes your future salary negotiations smoother and more predictable.
Final Thought: Transparency Is No Longer Optional
In today’s hiring climate, salary transparency is more than just a checkbox for compliance—it’s a core element of how modern organizations attract, engage, and retain talent.
It builds trust. It improves efficiency. It promotes equity. And most importantly, it aligns with what candidates now expect.
If your job postings don’t include salary ranges, ask yourself what message that sends. Are you missing out on great talent? Are you inadvertently creating pay gaps? Are you falling behind competitors who are embracing transparency as a strength?
Posting salary ranges won’t solve every hiring challenge, but it’s a meaningful step toward a more open, fair, and future-ready hiring process.
