More than two-thirds of Australian companies have lost a potential top candidate because they did not list the salary in a job advertisement, prompting calls for greater pay transparency.

Research by specialised recruiter Robert Half, based on a survey of 5,000 Australian hiring managers, found that 51 per cent of organisations still do not include salary expectations in their job advertisements.

Just under 70 per cent of respondents said they had lost a candidate because their salary expectations did not align after pay information was omitted from the job advertisement.

“Withholding salary information can delay and disrupt hiring outcomes,” Robert Half director Nicole Gorton said.

“In a market where skilled professionals are time-poor and highly selective, clarity is a competitive advantage.

“With the state of the current employment market, even losing one high-potential candidate can have rippled effects on productivity, team morale and business continuity.”

Push to make salaries public

In Australia, companies are not obligated to include salary information when advertising a role.

The United Kingdom government recently unveiled plans to require employers to publish salary information in job ads, along with other details of the role.

It is consulting on whether employers should be required to advertise an exact salary or a “benchmark rate” for similar roles.

Of the 51 per cent of Australian respondents who said they do list salaries in job advertisements, most said they do so in order to promote transparency, build trust with candidates, and attract more qualified talent.

More than nine in 10 organisations that publicise salaries said doing so improved the quality of applications that they received.

“Transparency acts as a natural filter by aligning salary expectations early, reducing friction later in the hiring process,” Gorton said.

“While some employers may choose not to disclose salaries upfront due to internal quality concerns, flexibility needs, or evolving requirements, sharing a salary range where possible can help set expectations, support informed discussions and minimise the risk of misalignment.”

Pay transparency as a recruitment advantage

The research highlights how pay transparency can help organisations attract talent and avoid losing strong candidates during the recruitment process.

“With ongoing cost-of-living pressures and employees becoming more vocal about remuneration, candidates are approaching job moves with sharper financial awareness,” Gorton said.

“Employers who don’t address compensation upfront risk progressing strong talent through multiple stages of the hiring processes only to lose them at the final hurdle.

“That’s a costly use of both time and resources.”

While employers can keep salaries hidden in job applications, they are no longer able to require workers to keep their own pay confidential.

Under legislation passed by the federal government in early 2023, bosses cannot ask workers to keep their salaries secret, as part of broader efforts to reduce the gender pay gap.

The legislation also prohibits job advertisements from including pay rates that breach the Fair Work Act, an applicable award or an enterprise agreement.

The push for greater transparency comes as employers contend with a skills mismatch in the technology sector.

Recent research found tech job seekers are more likely to be overqualified than their peers in other sectors, with a growing skills mismatch complicating the hiring process.

The report found that many candidates are applying for jobs that are below their experience level, while others are applying for positions where they lack the specific capabilities required.

Another report released earlier this month found nearly two-thirds of Australian job hunters have three interview processes on the go at the same time.

Despite this scattergun approach, workers are also increasingly more wary of moving into a new role amid ongoing economic uncertainty.