Latest / Hiring & Firing with Fexingo: Recruitment, Performance, and Workforce Decisions / Why Your Job Ad Should List the Salary Range
Transcript
- Lucas: There's a scene in the TV show Mad Men where Don Draper says, 'If you don't like what's being said, change the conversation.' For decades, employers did exactly that when it came to salary. They'd dodge the question, hide the number, and make candidates jump through hoops before revealing pay. Luna: And we all know how that felt on the other side. You'd go through three rounds, prepare a deck, and then find out the range is fifty grand below what you're making now. Lucas: Right. But the data keeps piling up that transparency works better for everyone. A 2024 study from the National Bureau of Economic Research found that job postings with a salary range get 30 percent more qualified applicants than those without. Luna: Thirty percent. That's huge. And it's not just about getting more — it's about getting the right ones. Lucas: Exactly. The signal matters. When you post a range, you self-select out people who wouldn't accept the job anyway. That saves everyone time. The study also showed that time to hire dropped by about 15 percent for roles with posted pay. Luna: So both sides win. But I still hear recruiters say, 'If I post a range, I lose negotiation leverage.' Is that a real concern? Lucas: It's a common fear, but the evidence suggests the opposite. When you hide the range, candidates who assume it's low might never apply, and those who assume it's high might drop out when they learn the real number. Both outcomes waste your pipeline. Luna: And the ones who do apply despite the secrecy — they're often the ones who are desperate or less selective, which isn't great for long-term retention. Lucas: That's the key point. A transparent range attracts people who are actually excited about the role at that pay level. They're less likely to leave after six months because they feel underpaid. Luna: So what does a good range look like? I've seen everything from a ten thousand dollar spread to a hundred thousand dollar spread. Is there a sweet spot? Lucas: The best practice is a range of about 20 to 30 percent from bottom to top. So if you're willing to pay between 80 and 100, that's a twenty-thousand-dollar band — roughly 25 percent. Anything wider than 50 percent starts to look like you don't know what the job is worth. Luna: And if it's too narrow, like five grand, candidates might think you're just going to offer the bottom anyway. Lucas: Exactly. The range signals your flexibility. A narrower band often correlates with a more rigid culture. Let me give you a concrete example. A mid-size SaaS company in Denver — about 300 employees — decided in early 2025 to add salary ranges to all their engineering postings. Luna: Did they see the same effect? Lucas: Even better. Their applicant pool for senior backend roles went from about 40 applicants per posting to nearly 70. And the average experience level actually went up. They also reported a 20 percent drop in first-year turnover for those hires. Luna: That's a powerful case. And it's not just engineering — I imagine it works across functions. Lucas: Sales, marketing, operations — the pattern holds. One caveat though: the range has to be honest. If you post 80 to 100 but you only ever hire at 80, candidates figure that out fast. Glassdoor, Levels.fyi, all those sites share that data. Luna: So it's not just about posting the range — it's about living within it. Otherwise you destroy trust before day one. Lucas: Right. And this ties into a bigger theme we've talked about before: treating candidates as respected partners, not supplicants. When you lead with the range, you're saying, 'We value your time and we're not going to play games.' Luna: I think a lot of small business owners worry that if they post a range, competitors will poach their employees by offering the top of the band. But doesn't the data show that retention actually improves in transparent companies? Lucas: It does. A study by the nonprofit Payscale found that employees who say their pay is transparent are 30 percent less likely to be actively looking for a new job. When people know they're being paid fairly, they're less curious about what else is out there. Luna: So the transparency paradox: showing your cards actually makes you stronger. Lucas: Exactly. And there's one more piece here that I think is underappreciated. Posting a range can actually improve your negotiation outcomes. When a candidate knows the band, they're less likely to lowball themselves or ask for something totally outside the budget. The conversation becomes about where in the range, not whether the range exists. Luna: That's a lot smoother than the old dance of 'What are you looking for?' — 'Well, what are you offering?' — 'We'd like to hear your number first.' Lucas: Right. And it's worth noting that this isn't just about salary. Some companies are starting to include the full compensation package — equity, bonuses, benefits — in the posting. That's more advanced, but early data suggests it further improves applicant quality. Luna: I can see that. If you're recruiting for a startup, the equity piece is often the deciding factor. If you hide it, you might waste time with someone who values cash over options. Lucas: Exactly. So the recommendation is straightforward: if you're not already posting salary ranges, start. Pick one role, add a genuine range, and measure what happens to applicant count, quality, and time to hire over the next quarter. The data will likely speak for itself. Luna: And if you're worried about the competition seeing your ranges — they probably already know. Platforms like LinkedIn and Glassdoor have made pay nearly transparent anyway. You're better off owning it. Lucas: That's a great point. And speaking of owning it, if these conversations have helped you think differently about hiring, you can support the show by visiting buymeacoffee.com/fexingo. It's a simple way to keep us ad-free and focused on the data. We really appreciate it. Luna: Yeah, it makes a difference. And it lets us keep digging into these specific, actionable topics. Lucas: Alright, back to the range. One final stat I want to leave you with: a 2025 survey by the Society for Human Resource Management found that 62 percent of job seekers say they will not apply to a job that doesn't list a salary range. That's nearly two out of three candidates. Luna: So by not posting, you're essentially locking yourself out of the majority of the talent pool. That's not a risk — it's a self-inflicted wound. Lucas: Exactly. And it's one that's easy to fix. So next time you write a job ad, ask yourself: would I apply to this if I didn't know the pay? If the answer is no, it's time to change the conversation. Luna: Well said. And thanks to everyone listening. We'll be back next week with another hiring question.