Pay transparency gap costs 69% of Australian employers potential candidates, says report

Nearly seven in 10 Australian employers have lost a potential employee because salary expectations did not align, after pay details were left out of job advertisements, according to a new Robert Half report.

The report highlights the growing cost of salary secrecy in recruitment, as employers compete for skilled professionals who are increasingly seeking clarity on compensation before committing to a hiring process.

Salary misalignment disrupts hiring

According to the report, 69% of employers have lost a candidate because salary expectations were misaligned after salary details were not included in the job advertisement.

For 22% of employers, this happens frequently, while another 47% said they occasionally lose candidates for the same reason.

Nicole Gorton, director at Robert Half, said the findings show how withholding salary information can create delays and disruption during recruitment.

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

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

Cost pressures sharpen demand for salary clarity

The push for greater pay transparency comes as cost-of-living pressures make compensation a more prominent consideration for candidates assessing career moves.

Gorton said employers risk wasting time and resources when salary expectations are only discussed after candidates have progressed through several stages of recruitment.

"Employers who don't address compensation upfront risk progressing strong talent through multiple stages of the hiring process only to lose them at the final hurdle. That's a costly use of both time and resources."

Despite the risks, salary transparency is not yet standard practice across Australian recruitment.

The report found that 51% of employers include salary details in job advertisements for all or most of their roles.

Transparency can improve candidate quality

For employers that do disclose salary information, the benefits extend beyond reducing candidate drop-off.

Transparency and trust-building were the leading reasons cited by employers for including salary details, at 24%. A further 23% said they wanted to attract more qualified applications, while 19% cited staying competitive.

Another 18% said transparency helped reduce candidate drop-off caused by unclear expectations, while 17% said it reduced the time spent on salary negotiations.

The report also found that 91% of employers that practise pay transparency said it improved the quality of applications they receive. Nearly half, or 47%, described the improvement as significant, while only 2% said transparency reduced application quality.

Salary ranges act as a hiring filter

Gorton said salary transparency can help employers attract candidates whose expectations are already aligned with the role.

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

While some employers remain reluctant to disclose salaries because of internal equity concerns, flexibility or changing role requirements, Gorton said providing a salary range where possible could help employers set expectations earlier.

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

The findings suggest that pay transparency is increasingly becoming more than a recruitment preference. For employers competing for skilled talent, it can influence who applies, who stays in the hiring process and who ultimately accepts an offer.