Being upfront about pay and remote vs. on-site work can give you an advantage as an employer
In this video, Mike Foster and Ben Eubanks discuss two hot issues uncovered by our recent study of talent acquisition leaders and candidates: pay transparency and remote vs. onsite / hybrid work.
Listen to their conversation, below, to learn ways candidates react to office requirements, when to work it into the conversation (to prevent candidate ghosting) and how to use pay transparency to your advantage as an employer.
Want the highlights? See the highlights and takeaways after the jump.
Highlights and takeaways from the video with Mike Foster and Ben Eubanks:
1. Remote vs. onsite work trends & insights
4 out of 10 employers see drop-off when they mention on-site or non-remote work
[2:20] Hiring for remote work. It exploded in 2020 for employers. Now, return to office (RTO) is all over the headlines. 4 out of 10 employers see drop-off when they mention on-site or non-remote work.
I think there’s going to be a mix. We’re seeing more clients looking to bring employees into an office setting or hybrid. But we’re also seeing more candidates demand remote positions. So, we’re seeing a gap between what employees are hoping for and what candidates prioritize. I think we’re going to land in the middle. There are going to be challenging roles companies struggle to fill. They’re going to have to be open to remote roles. I truly believe that remote roles that have strong goals or metrics tied to them tend to perform well in a remote situation. You’ll start to see those types of positions sticking around.
5x more applicants to positions for remote than hybrid or on-site
[4:13] One of the interesting things we’ve heard: 5x more applicants to positions for remote than hybrid or on-site. People who are applying for remote aren’t even acknowledging on-site or hybrid. Remote is a much larger talent pool. These are two separate talent pools.
There’s a trust issue between managers and employees
[6:20] There’s often a trust issue with hiring managers and employees. But when they’re able to track metrics and track goals so they don’t have to over-the-top micro-manage people, hiring managers and employees tend to be more successful with the remote work environment.
Workplaces like Best Buy have transitioned to a “results only” work environment. That’s why the goals and metrics we’re talking about here really apply. These companies have realized we need to do this first [establish expectations, goals and metrics for worker performance]. Otherwise, we don’t know if we are successful or not. We’ll never know. That enables them to have flexibility in the options they offer employees.
So, they don’t simply need to offer hybrid or remote because candidates demand it. Companies with that “results only” mindset and approach can prove what arrangements actually produce results for their business and go that direction. It’s good for candidates; it’s good for the business.
Onsite has more added-costs than office rent — it impacts compensation too
[8:07] There’s an added cost to on-site / in-office work. When you reach out to candidates, as a recruiter or employer, about on-site or hybrid position, there’s an added cost that comes with that type of position. When you think of the commute, the flexibility, those benefits that come along with remote work — what does that cost to the worker? And we’re seeing candidates say, if you want me to come into the office, you have to pay me more. When done correctly, there’s saving to remote work and benefits. Because that is a perk.
Transparency and being upfront can prevent candidates from ghosting recruiters
[10:04] Employers are seeing a growing number of job candidates ghosting after you tell them it’s a hybrid or on-site job. One way we advise clients to prevent this is transparency. List the location in the job description. Transparency on many issues, like location, arrangement and salary, builds trust and ultimately saves everyone time. List in the job description, this position requires two days in office each week, Wednesdays or Thursdays in the office. Say to them “these are what our expectations are.” People who aren’t open to on-site work at all, frankly, just won’t apply. So, no one is wasting anyone’s time.
Ghosting also happens when an employers wants to advertise jobs to the masses. Reach as many people as possible, not just the right people. When a recruiter gets on the phone, they break the news that it’s a hybrid position. Or sometimes an employer will change the requirements — interview a candidates for a remote position, then right around offer time, change it to on-site or a certain number of days in office. Then the person backs out.
You hope the job candidate gives you notice and communicates. But in today’s environment that often doesn’t happen. But that communication goes both ways. Employers can head that off by being transparent and clear from the start, right in the job description and carrying the same message through interviews, hiring manager and recruiter comms.
When they learned more about the company or the job, it wasn’t for me.
2. Pay transparency trends & insights
Showing pay range increases click-thru rate on job descriptions
[11:10] We’re seeing more interest from candidates in employers being open about the pay (having the pay listed in the job description) even in places where it’s not required. There’s interesting data that’s come from economists that suggests advertising a job post with a pay rate or range in it: it costs less to advertise that job, it gets a higher click-thru rate. It’s not creating new things to give you an advantage. It’s communicating what you were already going to do.
Omit pay information at your own risk
[11:45] When we talk about transparency, most of us immediately go to pay transparency. Not everyone is there yet, but the job websites are ahead of it. Algorithms are driving a lot of it. The jobs that don’t include pay information end up on page five. In fact, you might be lucky with page five. But if you include compensation data or salary range, you end up on page one or two — because candidates are more likely to engage with your job post and know if that job is worth their time and attention.
Another downside to not listing salary or rate on a job description: some sites will attach an estimate of what the pay range is based on market intelligence. One example: one client had a job posted in California, which didn’t have salary information, but the site put an estimate on it. No one was applying. Then we realized it was estimated at $80K less than what they were going to be paying — so why would anyone apply to that job so far under market rate?
In fact, that’s what we’ve seen: pay estimates are often significantly lower than what most employers are actually paying. It hurts employers for these systems to make these estimates. But pay transparency isn’t going away. So, employers and recruiters should consider including pay in job posts to their advantage.
Pay transparency is about more than job posts
[13:33] We’ve had a lot of time to process pay transparency. It’s not going anywhere. Even if you’re working or recruiting in states where it’s not required: start preparing for it.
Because pay transparency is about more than job posts. If you think about adding salary range to a job post, and you’ve listed it at $10K more than what you’re already paying people in the job, you’ll have internal pay equity and retention issues to deal with.
It’s time to prepare your organization for pay transparency.
[14:12] Haven’t started on the road to pay transparency? There’s no time like right now to start preparing your organization for this evolution in compensation. Not simply because it’s the right thing to do. It will help from a recruitment and retention standpoint.
Keep in mind: you’re not alone. Mike Foster from Advanced RPO lives and breathes in this space and what pay transparency means to an organization, its recruiting function, employer brand and ability to retain employees.
Every day, we’re learning and adapting to this new era of compensation. It’s more than just popping numbers in a job post. It impacts your overall offer and the way you can negotiate pay. Ask questions — it’s guaranteed you’re not the only one trying to figure it out.
Advertising your job is like… advertising a car?
[15:36] Ben gives the examples that when you buy a car online these days, you can filter for make, model, condition and price. All of the data is in front of you. Same goes for jobs. You can filter your search for job title, responsibilities, remote / onsite / hybrid, location and pay. Job candidates are able to come to the table more informed with this transparency of data.
Mike reminds us that employers and recruiters need to come to job posts with that marketing mindset. Instead of plastering an 8-page job description all over job post sites, you want to tailor your job ad to clearly communicate the job, your employer value proposition, your hiring process and the pay.
If you were advertising a car with a ding, but you don’t list that in the description, someone’s going to see the car and walk away. Same with jobs. You need to list those essential details, like remote / onsite / hybrid and pay. So, when recruiters get the best candidates on the phone, they don’t hear those details and walk away. In fact, you have to list those details so you can even get them on the phone. Because when you have the opportunity to see inside an organization or not, candidates are more likely to choose the opportunity they can see.
Learn more key factors for hiring in the modern environment
Our recent study in collaboration with Lighthouse Research & Advisory gives you an exclusive look at recruiting from both the employer and the candidate’s point of view. Based on surveying over 2,000 candidates and hiring managers, this report helps employers win talent by appealing to their needs and fulfilling their expectations in the recruiting process.
About the speakers
Ben Eubanks, Chief Research Officer, Lighthouse Research & Advisory
Ben is an accomplished author, researcher, speaker and Dad x4. As the principal analyst and Chief Research Officer at Lighthouse, Ben oversees the development of research, assets, and insights to support HR, learning, and talent executives across the globe. His research is leveraged by the vendor community to educate and inspire today’s business leaders in tangible ways. Ben has worked as an influencer and analyst for more than ten years with seven of those in an independent capacity.
Mike Foster, Account Director, Advanced RPO
Mike is an Account Director at Advanced RPO, and is accountable for leading the strategic direction of the recruitment partnership between Advanced RPO and Advanced Group. He builds positive and productive relationships among internal clients and departments and also works closely with the account recruitment team serving as a manager, mentor, and coach.