The Display of RAL Benefits Recruiters Too!

A European law passed in 2023 makes it mandatory to display the RAL (Gross Annual Salary). This is a significant step not only for candidates but also, as we’ll discover, for recruiters.

In job interviews, recruiters navigate between permissible and forbidden questions, avoiding sensitive topics like religious beliefs, political or sexual orientation, and family plans.

Since March 2023, asking a candidate about their previous Gross Annual Salary (RAL) has become one of the questions recruiters can no longer ask. But there’s more. 👇

New RAL Rules: What Changes for Recruiters?

The European directive brings a major change: it is now prohibited to ask candidates about their previous RAL, effectively eliminating the practice of using it as a benchmark for salary negotiations. This shift aims to create a more equitable hiring process, focusing on current skills and the role offered rather than the candidate’s previous salary. But that’s not all...

The Obligation to Display RAL in Job Listings

Companies are now required to clearly display the RAL in their job ads. This measure, which has been positively received, must be formalized and integrated into national systems within three years.

Before the introduction of this directive, only 4% of job ads in Italy and Spain displayed the RAL, with France slightly higher at 6%, according to Corriere della Sera.

Companies are now required to explicitly state the salary offered for each position, including bonuses and benefits, ensuring equitable treatment regardless of gender. While the benefits for candidates are clear, let’s focus here on how this reform also benefits recruiters.

Here Are 3 Key Advantages:

RAL Displayed = Reduced Gender Gap

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Transparency about RAL is a significant step toward eliminating gender pay disparities. According to data from the European Commission, women in Europe still earn 13% less than men. The European directive aims to address this gap by ensuring fair compensation offers for all candidates.

Historically, RAL was often kept hidden to allow recruiters to “personalize” salary offers based on gender, age, and nationality. With this new measure, such practices can be minimized.

RAL Displayed = Trust

Salary transparency, through the public disclosure of RAL in job ads, is crucial for building trust between potential candidates and companies. A 2020 LinkedIn study revealed that 77% of professionals consider knowing the salary range important before applying for a position. This indicates that salary transparency can significantly increase the attractiveness of a job offer.

Publicizing the RAL in job ads not only boosts trust but also enhances the perception of fairness and corporate integrity. Organizations that adopt salary transparency policies are seen as more equitable and just, as candidates perceive that salary decisions are based on objective, merit-based criteria, reducing the risk of discrimination.

This is particularly important for candidates in the Millennial and Gen Z demographics.

RAL Displayed = Time Saved

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Displaying RAL in job ads streamlines the recruitment process, saving time for both recruiters and candidates. This approach eliminates inefficiencies and ensures a more direct and efficient hiring process by preventing prolonged interviews based on misaligned salary expectations.

Moreover, it allows candidates to quickly assess if the offer fits within their desired salary range, significantly reducing the number of applications that do not match the company’s salary expectations. According to an Indeed study in 2018, including the salary range in job ads can increase the likelihood of a candidate applying by 30%, as it filters out unsuitable offers right from the start.

The average hiring cycle lasts 36 days, but salary transparency can reduce this timeframe, allowing recruiters to focus on candidates who are genuinely interested and aligned with the offer. This eliminates lengthy and often fruitless negotiation stages, accelerating the hiring process.

Imagine: 36 days of waiting and expectations saved for both parties!

The requirement to display the RAL in job ads marks a significant change in the recruitment landscape, bringing benefits of fair pay, mutual trust, and efficiency in the hiring process. This regulation not only addresses the gender pay gap but also promotes a work environment based on merit and equal treatment, which are essential for a fair and inclusive labor market.