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• Article 2 •
16 August 2021

Why do companies leave out salary ranges for remote hire job listings, and what can be done about it.

Why do companies that hire remote don't list salary ranges in their job offers?

The most common answer to this question is that the ranges would be so broad that it would not tell you anything more than if you would not list them at all.

Companies take different approaches to try and solve this.

Recently I talked with Aleksandra from Pocket Worlds (a social-first gaming company), a fully remote company. She explained her approach to solving this. She prefers to list job openings with local websites. This way, the ranges can be more targeted and provide more value to the application. It's a great workaround, but it takes extra time, you end up posting several job openings, and you also need to track several sources.

They also post job openings on LinkedIn, where they prefer not posting salary ranges because they would not make too much sense as the range is quite far apart.

In Aleksandra's case, and I assume in many remote/hybrid company cases that use LinkedIn as a job listing website, this means that you need to check the salary expectation right away. And that results in work that doesn't help the company move forward. Together with Aleksandra, we made a rough estimation of how much time it took her in total to check expectations with all the candidates on a recent job opening.

So what does it mean? To check salary expectations, you need to know what is a fair salary in those countries. To know that, you must do salary research, then put all this information into a spreadsheet that includes all other compensation information like bonuses and equity. On average, this takes 30 min per title and country, now depending on how many countries, this can quickly add up.

When you want to post a global job with a localized compensation philosophy, is there no better way to do this?

Curious to hear about other approaches, please tell us of your approach.

I feel like checking salary expectations as a first email means that the conversation quickly becomes material before the discussion goes to the skill and strengths of the candidate, company culture, and opportunity to grow.

Many candidates will drop from the process after getting familiar with salary expectations based on location. For HR departments, this means a lot of hours of essentially wasted time on being nice and polite, following up on emails that don't deliver any real value to the company. It would be amazing to avoid this from the start. So we looked at what alternatives are out there. Such companies like Buffer.com have a salary calculator. Some companies have a spreadsheet where candidates can choose the location and identify a range themselves. 

The Buffer calculator is great. Candidates can check expectations before applying, thus allowing HR departments to skip the salary expectation check part. The problem, I assume, is that it requires maintenance as the data needs to be up to date.

We entertained the idea of allowing companies to add a calculator like this to the job opening so that candidates can check expectations before they apply as part of the application process. And of course, every calculator could be adjusted to fit with company compensation philosophies, like in Buffers case, cost of living.

It would be great to hear your thoughts on this. What do you think, adding to a remote job offer would make a difference for you?

To conclude, there is no dedicated tool to help companies show the correct salary range to candidates. A few companies have dedicated tools, Buffer and Github, but it's something they did for themselves. beHOP hopes that it will have something to help companies add relevant price ranges to job listings soon as an off-the-shelf tool.

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