Dive Brief:
- Including pay information in job postings may lower overall recruiting costs, and job postings that included this information performed better in the first quarter of 2021 than those that did not, according to the results of a quarterly study of candidate conversations by artificial intelligence hiring solutions firm PandoLogic.
- Jobs that included remote work in their titles also converted candidates at a 57% higher rate than those that did not, PandoLogic said, while remote roles also had a cost per application that was 5.5 times lower than nonremote roles.
- The firm also noted a focus on healthcare and health insurance benefits in candidates’ conversations, indicating the increasing importance of these benefits, it said.
Dive Insight:
Pay became a central component of the Great Resignation, with the movement of workers forcing HR teams to reconsider long-held compensation and practices.
Transparency is one piece of the larger pay puzzle. For one thing, some candidates demand it; a 2021 survey by compensation software vendor beqom found that more than one-quarter of U.S. respondents said they believed employers should provide details about pay in job postings, while 61% were more likely to apply to a job whose posting shared salary information. In July, a Lattice survey found that 51% of employees said their companies should share pay details for everyone at their respective organizations.
The topic has gained even more traction thanks to regulators. Jurisdictions in at least 11 states have laws on the books requiring employers to provide at least some form of pay transparency to applicants, and additional pay transparency laws may not be far away. For example, California legislators have voted to advance a bill that would require employers with 15 or more employees to post pay scales in all job postings.
Research on the impacts of pay transparency laws is already beginning to emerge. Colorado’s law, which requires employers to post pay ranges in all job postings, led to a 1.5% boost in labor force participation compared to neighboring Utah, according to a recent Recruitonomics analysis. But the law also led to fewer job postings on Indeed, Recruitonomics found, and a number of employers have explicitly excluded Colorado applicants in job postings.
PandoLogic’s study separately noted the impact of remote work availability in candidate conversion, which may reflect broader demand for flexible work options in the talent market. But there are signs that access to remote work may be in decline for certain candidates, even for those in white-collar roles, according to June data from business data provider Coresignal. Highly compensated jobs, on the other hand, have become increasingly remote since the beginning of the pandemic, according to early 2022 data from career site Ladders.
