What are the reasons for not including the salary in job postings?
There are good reasons for keeping salaries a secret. The main reasons can be summarized as follows:
- This is cost-effective.
Labor costs are the main expenses of any company. So, if they do not mention in the job description how much they are willing to pay, they can hire candidates for less money.
- This provides more flexibility for negotiations.
Keeping salaries under wraps can be an excellent negotiating strategy, reducing labor costs.
- It can be an advantage over competitors.
Hiding salary information for the vacancy will prevent competitors from seeing how much the company is ready to pay and using this data to their advantage.
- It can prevent companies from losing their current employees.
Current company employees may also look at their company’s job postings and discover that they are paid less than they could be. And this fact can push them to ask for a pay raise or leave the company.