When job searching on LinkedIn, one frustration many experience is the lack of salary information provided in job postings. While some companies do include salary ranges or starting pay, most leave out any mention of compensation. This leaves job seekers wondering – why don’t companies post salaries on LinkedIn?
It gives them negotiation power
One of the main reasons companies avoid posting salary information is to maintain negotiation leverage. By keeping the salary detail private, they force candidates to name the first number when discussing pay. This allows the company to then negotiate down from there. Posting a salary upfront removes this advantage and gives the power to job seekers to negotiate up from a set figure.
Knowing the full salary range also helps candidates negotiate more effectively. Without posted salaries, applicants may ask for too little or price themselves out if they request too much. On the other hand, companies can lowball offers or extend offers at the lower end of the band if they know candidates don’t have the full information.
Salary expectations vary
Another factor is that salary expectations can differ drastically between candidates for the same role depending on their location, skills, experience level and more. With a wide range, companies avoid posting a set figure that could deter quality applicants on either end of the spectrum.
For example, for a software engineering role, a recent graduate may be satisfied with $60,000, while an engineer with 10 years experience expects $120,000. Posting $80,000 could discourage the senior engineer, while posting $100,000 seems exaggerated to the junior engineer.
Rather than trying to capture this range in the post, companies opt to leave it off entirely to cast a wider net. Once engaged with candidates, they can tailor offers based on expectations.
Salary disclosure can impact hiring
Disclosing salary details can also negatively impact hiring success in some situations. If a company posts salaries lower than competitors, they may struggle to attract talent. Top candidates are likely to pursue roles at companies offering better compensation packages if they know upfront.
Additionally, some studies show both men and women are less likely to apply for a job if the salary is posted as lower than expected. Leaving salary off avoids this potential deterrent during the application process.
It complicates budgeting
Posting salaries on job ads also complicates budgeting for open roles. Companies need flexibility to offer higher pay for standout talent or negotiate based on circumstances that require going above the standard band. Listing a set figure removes this freedom.
There are also cases where salary expectations shift between when a role is posted and when hiring takes place. The company may need to adjust offers to account for market rate changes over this period rather than sticking to an outdated posted number.
Legal concerns
Some legal risks also factor into the decision to omit pay. In particular, posting salaries can lead to discrimination claims if employees in the same role realize they are paid differently than what’s advertised. Even slight variances due to experience or tenure can prompt legal action.
By keeping salaries private, companies avoid liability under equal pay regulations. The compensation details remain unknown to other employees, minimizing the risk of lawsuits.
When are salaries disclosed?
Though rare, some situations warrant including pay in LinkedIn listings and other job ads:
- Entry-level roles where pay is standardized across the board
- Locations with pay transparency laws requiring disclosure
- Companies attempting to stand out from the competition and attract talent
- Employers struggling to fill open positions and hoping pay will entice applicants
- Roles with compensation well above industry averages and standards
However, most companies still opt not to post salaries even in these cases. They prefer to keep the information private unless specifically required by law to make it public.
What are alternatives for candidates?
Because LinkedIn and job postings often lack pay details, what options exist for job seekers to research salary information?
Check salary sites
Aggregator sites like Glassdoor and PayScale compile user-submitted salaries to provide compensation averages and ranges across companies. While not completely reliable, they offer a general idea of what base pay to expect.
Use salary calculators
Several free online tools allow inputting your experience level, location, skills and other factors to estimate a target salary range for negotiations. These provide a jumping off point to gauge what pay to reasonably request.
Ask connections
Speaking with former colleagues, friends or your broader network who work at the company can provide insider intelligence on salary trends. This gives more personalized insight beyond general aggregates.
Wait for the discussion
If all else fails, you’ll need to wait for a direct salary discussion with the recruiter or hiring manager. This is the ideal time to ask for the pay band and market data to back up your request. Come prepared with your target number and data to support it.
Should companies post salaries?
While practices may not change overnight, the benefits of pay transparency are gaining more attention. For job seekers, disclosed salaries help set informed expectations and avoid wasted time pursuing positions with lower compensation than desired. More companies are starting to recognize this can lead to higher quality candidates pursuing openings.
The challenge is balancing transparency demands with business interests around negotiation power, budget flexibility and legal risks. However, with tools like configurable salary ranges, posting averages rather than absolutes, and clear disclaimers, companies can begin providing more pay visibility.
Greater compensation insight benefits both employers looking to stand out and job seekers seeking their best fit opportunity without playing salary guessing games. More transparent pay practices on LinkedIn and company sites can help align expectations and improve hiring for all parties involved.
Conclusion
Salary disclosure remains a rare practice among most employers, as companies aim to maintain bargaining power, attract a broad talent pool, and avoid legal claims. However, increased transparency around pay is gaining traction as workers demand more information and businesses recognize the competitive edge open salaries can provide. While posting salaries may never become universal practice, even small shifts toward more public pay information would aid both applicant and recruiter. Negotiations could start from realistic expectations rather than guesses, driving efficiency and better outcomes for everyone.
