Why is salary disclosure not common?
Posted: Thu Feb 20, 2025 9:54 am
Currently, we are encountering a phenomenon on the Czech labor market where many job advertisements do not state a specific salary. This practice can be frustrating for many job seekers, as salary is often the main factor in deciding whether to change jobs.
Although some companies are becoming more open about this, it is not yet common practice. Advertisements often list the job title and job description, but often do not mention the salary, making it difficult for candidates to choose the right position. Why is transparency in compensation something that companies avoid?
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Companies explain their reluctance with 3 main reasons :
By preferring flexibility when negotiating with people interested in working for the company. The discussion about salary conditions comes only during the interview and allows HR professionals to better take into account the education and experience of candidates.
Fears of dissatisfaction among people in the company. The negative reactions of long-term employees in the company are justified, because starting salaries tend to be higher than current ones. This wage policy responds to the lack of suitable applicants and tries to attract new people to the company at a higher salary, while the salary of those who have been working for a long time does not increase as quickly.
Fear of losing competitiveness . If a company offers lower wages than is typical for its competitors, it risks attracting less interest from job seekers.
On the other hand, transparency in remuneration gives the company an advantage in the eyes of candidates, as it attracts more applicants. Salaries are most often listed for positions with a shortage of suitable candidates.
In April 2023, Hays surveyed LinkedIn about their preferences for salary information in job advertisements. 22% of respondents wanted to see a specific amount in the advertisement, while 66% would be satisfied with a salary range.
Only 8% consider salary information to be irrelevant and 4% are skeptical about the effectiveness of this practice and its impact on pay equality.
Courses by topic:
HR and recruitment
«HR Manager: Start from the basics»
Gabriela Šimšová
HR Professional
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HR and recruitment
«HR Business Partner»
Helena Kent
People & Culture Strategic Partner at UniCredit Bank Czech Republic and Slovakia
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It's wrong, but...
The lack of transparent pay can lead to distrust and demotivation among potential and existing employees. In the European Union, the situation varies from country to country, but the trend is clear and towards greater openness.
However, the example of Slovakia shows that the new regulation does not necessarily lead to a more level playing field. Mandatory wage disclosure has been in place here since 2018, but transparency in remuneration has not solved any problems. Companies in Slovakia prefer to advertise lower wages, thus continuing to leave room for wage negotiations during the interview.
What's coming up?
Under the new directive, companies are required to disclose the starting salary or range either in the job advertisement or before the interview. They are also not allowed to ask about a candidate's salary history.
Companies are also required to accommodate newcomers if they want to know what the average level of remuneration is in the company for the same or equivalent work.
Although some companies are becoming more open about this, it is not yet common practice. Advertisements often list the job title and job description, but often do not mention the salary, making it difficult for candidates to choose the right position. Why is transparency in compensation something that companies avoid?
All content in a useful format. Interviews, articles, life hacks and tips from the ivory coast phone number data world of business and corporate on our Instagram.
Come join us!
Companies explain their reluctance with 3 main reasons :
By preferring flexibility when negotiating with people interested in working for the company. The discussion about salary conditions comes only during the interview and allows HR professionals to better take into account the education and experience of candidates.
Fears of dissatisfaction among people in the company. The negative reactions of long-term employees in the company are justified, because starting salaries tend to be higher than current ones. This wage policy responds to the lack of suitable applicants and tries to attract new people to the company at a higher salary, while the salary of those who have been working for a long time does not increase as quickly.
Fear of losing competitiveness . If a company offers lower wages than is typical for its competitors, it risks attracting less interest from job seekers.
On the other hand, transparency in remuneration gives the company an advantage in the eyes of candidates, as it attracts more applicants. Salaries are most often listed for positions with a shortage of suitable candidates.
In April 2023, Hays surveyed LinkedIn about their preferences for salary information in job advertisements. 22% of respondents wanted to see a specific amount in the advertisement, while 66% would be satisfied with a salary range.
Only 8% consider salary information to be irrelevant and 4% are skeptical about the effectiveness of this practice and its impact on pay equality.
Courses by topic:
HR and recruitment
«HR Manager: Start from the basics»
Gabriela Šimšová
HR Professional
learn more
15-6311b5fda7c02166766961.png
HR and recruitment
«HR Business Partner»
Helena Kent
People & Culture Strategic Partner at UniCredit Bank Czech Republic and Slovakia
learn more
teacher-hr-bp-11-643e87c360b10992112275.png
It's wrong, but...
The lack of transparent pay can lead to distrust and demotivation among potential and existing employees. In the European Union, the situation varies from country to country, but the trend is clear and towards greater openness.
However, the example of Slovakia shows that the new regulation does not necessarily lead to a more level playing field. Mandatory wage disclosure has been in place here since 2018, but transparency in remuneration has not solved any problems. Companies in Slovakia prefer to advertise lower wages, thus continuing to leave room for wage negotiations during the interview.
What's coming up?
Under the new directive, companies are required to disclose the starting salary or range either in the job advertisement or before the interview. They are also not allowed to ask about a candidate's salary history.
Companies are also required to accommodate newcomers if they want to know what the average level of remuneration is in the company for the same or equivalent work.