Today is June 23, 2020.
Our thesis – Knowing a realistically useful and narrow salary range before someone applies for a job should be the norm. Why? Because in every other marketplace, price is the first thing you either see or inquire about. We present a case for why evaluation of every job should begin with location based compensation analysis and why this strategy saves several hours of time and cost for both the job seekers and employers.
I worked for a consulting company that regularly responded to “Request for Proposal” aka RFP where the client asks the consultant to submit their qualifications and costs for completing certain tasks. Now imagine if the consulting company wrote in their response to the RFP — “Let us keep the discussion of cost for when we have convinced each other that we are a great fit for this project.” Needless to say that this proposal is not going to go very far in the selection process. Cost or price of providing service is considered first and most straightforward selection criteria.
This is exactly how a job seeker’s and prospective employer’s relationship works. The job seeker provides the qualifications and skills for a fee (i.e. salary) and the employer, just like the client above, has tasks and projects that they need completed (i.e. the job post). We propose that this negotiation should also begin with a clear understanding of tasks, qualifications and compensation.
Companies don’t respond to a RFP without including cost of providing services or individual don’t go to grocery stores with no prices displayed on the aisle. Why then are most job posts without a narrow and accurate salary range?
Imagine one day you visited the grocery store and none of the items have listed prices. You are asked to read the description (job post), maybe try a sample (interact with team members), and make a mental commitment to buying by putting the items in your cart (culture discussions and office tours). You then discover the prices at the checkout counter (salary negotiation). This is totally backwards.
Unfortunately, this is what current job search and interview process is like – you are told you will be working for an amazing corporation, that your office is downtown and how working here is a great step for your career and future. All these are probably true but before making a mental commitment to the “purchase”, why not also disclose the price of goods at the very beginning?
We agree, companies (just like ours) are trying to provide value while also maximizing profit and minimizing cost. With no or a wide salary range provided with a job post, prospective employer allows for the possibility of cost negotiation that end up favorable to them. A job seeker doesn’t need to go through a lengthy interview process, only to realize that the compensation is not enough for them to pursue this opportunity. This is especially important for job seekers with no benchmarking data such as college students or people seraching for entry level jobs. Let us stop this.
A 5% difference in starting salary in New York City translates to a difference of approximately 50% in savings and discretionary income over 10 years. No wonder the real salaries have been stagnant over decades where job search is disconnected from compensation details.
We request and encourage all employers posting jobs on our network to consider these beneficial reasons for providing a realistic and narrow salary range.
- Allows yourself to stand out in a tough market for talented individuals;
- Nurture a workforce of individuals who feel financially “settled” at their current job;
- When interviewing, filter candidates whose salary expectation are beyond what you are willing to pay, saving both their and your time;
- Find candidates who are only looking passively and with the “right” salary information, would consider applying for your job.
YourD3 is building tools using big-data and machine learning to better match our network of job seekers to employers that are the right fit for them.