For years, job hunting in Israel was conducted under an unwritten rule: The employer knows how much they are willing to pay, the candidate does not. Candidates entered interviews, passed screenings, invested time, sometimes even home assignments and professional tests, and only at a relatively late stage discovered that the salary was far from their expectations. In other cases, they were forced to “throw out a number” at the beginning of the process, hoping they did not ask for too little and did not demand too much.
In Europe, they are now trying to change the rules of the game. As part of a salary transparency trend that has been strengthening in recent months, employers are increasingly required to disclose to candidates the salary or salary range for the position, and at the same time, they are prohibited from asking what their salary was in their previous position. In Italy, the rules have already come into effect, and in Greece, similar legislation is being promoted that will require employers to provide candidates with broader information on compensation, including salary components, bonuses, benefits, and accompanying conditions.
How should employers prepare?
On the face of it, publishing a salary range in a job advertisement sounds like a simple step: Instead of “rewarding salary” or “good conditions,” you write a number. In practice, this is a move that requires organizations to check if their salary policy is truly organized, consistent, and explainable.
CPA Yulia Levi from the Eliot Global Israel Group explains that salary transparency is not just a social matter or an HR issue, but a managerial and financial change. “The moment an employer publishes a salary range externally, they must ensure that this range also aligns internally with existing employees – seniority, experience, responsibility, and possible wage gaps,” she says.
The implication is clear: A company that publishes a salary for a new candidate must also be able to explain to its existing employees how the salary was determined, what justifies gaps between similar employees, and what the criteria are for promotion and compensation. In organizations where clear salary tiers do not exist, transparency could surface tensions that were convenient as long as they remained behind the scenes.
What does it mean for the employees?
In Israel, there is currently no general obligation to publish salaries in job advertisements, and in most ads, the salary still does not appear. But even without legislation, the pressure for transparency is strengthening. Candidates are more exposed to salary surveys, professional groups, and standards coming from global companies, and as the information becomes more accessible, it is harder to postpone the salary conversation to the end of the process.
Alon Pinchas, CEO of WeCcelerate, a company that accompanies startups in various stages of development, estimates that in Israel too, the expectation for transparency will continue to increase. “For many candidates, a lack of transparency is perceived as a lack of trust,” he says. “Ultimately, this is a move that can save time, reduce disappointments, and enable better decision making.”
Source:
www.jpost.com
