(Image: Nick Mailer)
Plans to boost transparency in the jobs market could backfire and make recruitment even less open, a recruitment expert has warned.
Hazel Wynn, managing director of specialist finance recruiter Rutherford Cross, said UK Government proposals to require employers to publish salary details in job adverts might lead some companies to stop advertising roles publicly altogether.
The proposed legislation is aimed at improving openness about roles and preventing future pay discrimination claims, by requiring employers to publish a salary or pay range in any job adverts, or provide written salary information before an interview if a role is not shared publicly.
However, Ms Wynn said the changes could have unintended consequences: "The frustration candidates feel about job adverts with no salary is completely understandable.
"That’s why when we cannot publish a figure or range, we try to at least provide an indication of what the organisation has in mind for the role.
"Pay grades and ranges are already a common part of recruitment in the public sector – and they work well in that context, where the roles are often clear cut and part of a defined structure.
"However, in the private sector, with businesses at very different stages of their growth, it can be a complicating factor, particularly when they might be recruiting for a role for the first time.
"Companies often need to scope out the market to find a realistic salary for a role, the position may evolve depending on the available candidates, and sharing what new recruits might be paid can cause issues within the existing team.
"All of that may make them decide not to advertise publicly, and instead go down other routes to hire."
They may also have to provide information about other forms of remuneration, such as bonuses.
The UK Government is currently consulting on whether pay ranges, benchmark rates, or exact salaries should be disclosed.
Ms Wynn said publishing salary details could also unintentionally discourage suitable applicants: "At the same time, you can inadvertently dissuade people who may be perfect for the role by being too prescriptive about a salary.
"If it is far above what they are currently paid, they may think it is too aspirational.
"We have seen plenty of cases where perfectly suitable candidates can be discouraged by a number of factors in job adverts, often feeling like they have to meet all the criteria."
According to the Office for National Statistics, job vacancies fell below 700,000 in the three months to September, the lowest level since 2014.
Unemployment was at 4.7 per cent, significantly higher than the 3.6 per cent low recorded four years ago.
Ms Wynn said: "At a time when many businesses are already facing multiple challenges and they are finding it difficult to recruit the right people, this could add another layer of complexity.
"They would need to thoroughly research the market to determine salary expectations and think carefully about how they communicate a new role going live internally.
"From a candidate perspective, what they need is the opportunity to be evaluated based on their fit, experience, and potential rather than be judged by a fixed salary.
"This would offer greater flexibility for negotiation and potentially higher individual offers for the right people."