The Challenges of Salary Transparency in Recruitment Processes

A recent survey conducted by The Stepstone Group reveals that differences in salary expectations often lead to the failure of application processes. According to this study, 51% of recruiters claim that differing ideas about salary can end a recruitment process. Additionally, 23% acknowledge that the lack of early discussion about salary also contributes to the failure of applications.

Candidates, on the other hand, aspire to greater clarity from companies. The survey indicates that 59% of candidates have already refrained from applying for a suitable job due to the lack of information on the proposed salary, highlighting a 14% increase compared to 2022. 86% of those interviewed would support systematic disclosure of salaries by companies in Germany.

Despite the increasing importance of salary transparency, 47% of companies have not yet taken steps to openly address this issue. Only a minority of companies plan to introduce clearer and more transparent salary guidelines (17%), ensure pay equality regardless of gender and origin (16%), or continuously review their pay structure (15%).

In conclusion, salary transparency has become a key factor in attracting and retaining talent, especially in a context of labor shortages and inflation. Companies that adopt transparent approaches are more likely to meet candidates' expectations.