16.11.2023
As an open and transparent employer where the policy is to treat staff as equals, PostFinance is playing a pioneering role in pay transparency in its sector. It will consistently indicate salary ranges in job adverts from 2024, becoming the first Swiss financial institution to do so.
Candidates applying for jobs at PostFinance will no longer have to prepare for questions such as “what salary do you expect?” or “how much do you earn in your current position?” in future. That’s because the salary range will always be indicated in PostFinance job adverts from 2024. Candidates applying to the financial institution will know the salary details before coming to interview.
Revealing starting salaries in job adverts will give future candidates an insight into the pay structure for employees at a similar level. The primary aim is to avoid unequal and unfair pay. Salaries will no longer depend on the candidate’s negotiating skills. There are benefits to pay transparency in the application process, too: it makes things easier for everyone – applicants can preselect job opportunities, and companies avoid negotiations over salary expectations that can’t be met.
But what’s the current situation? Are companies obliged to guarantee pay transparency in job adverts? Indicating salary ranges in job adverts is already mandatory in some countries, including Austria, and in several US states. Similar regulations are also set to be introduced EU-wide by 2026. However, Switzerland doesn’t yet have binding provisions on salary details, although this is currently being debated.
In Switzerland, only individual sectors, companies or public enterprises currently indicate salary ranges on a voluntary basis in order to improve transparency and equality. PostFinance is the first Swiss financial institution to implement consistent pay transparency in job ads in its sector. We asked Jonas Jatsch and Avon Tharcisius what this means from HR’s perspective and for (future) employees.
Jonas Jatsch, HR Expert at PostFinance and responsible for introducing pay transparency in job adverts.
This measure was called for by our employee representatives during the last collective employment contract negotiations. As an employer with an actively open and transparent policy, we saw it as an opportunity to consistently meet applicants on an equal footing in relation to pay during the application process and to promote equal opportunity.
If applicants are aware of the salary range, they can gauge whether the salary on offer meets their expectations and if the job is worth applying for. However, revealing the salary range is also an indication of how PostFinance operates: our paths are short, our hierarchies are flat, and we communicate on an equal footing.
Revealing the salary range is also an indication of how PostFinance operates.
We’ve started communicating salary ranges in two areas: in job adverts for our Customer Center and in IT. These two areas differ greatly: for the Customer Center, we regularly advertise similar job profiles in various Swiss regions and target both experienced professionals and career changers. In the IT sector, we face fierce competition to attract highly specialized employees. Despite the different conditions, our experiences were very positive in both trials, and we received a positive response from applicants, leading to our decision to communicate salary bands in all of our job adverts from 2024. This excludes senior management positions.
By providing salary range details in adverts, we avoid questions about pay expectations at interview stage. There’s now no need to weigh up mutual expectations during salary negotiations. Instead, it’s a question of classifying whether the candidate – based on their skills and experience – can expect a salary at the top, bottom or middle of the pay range. That makes the process easier for everyone involved.
We haven’t seen any downsides so far. Beforehand, there were concerns that we’d receive fewer applications or that well-qualified people would no longer apply. That simply hasn’t happened. Quite the opposite: the quality of applications has improved. We’re seeing roughly the same amount of applications, but they tend to be more suitable candidates – even for positions that are hard to fill. In one such case, readvertising with pay transparency led to the position quickly being filled.
We’re working on it. We certainly don’t think internal pay transparency means publishing lists of employee salaries on the intranet and all colleagues knowing what everyone else earns. On the contrary, our aim for job adverts is to establish within the team how the specified salary and the required profile relate to each other. These discussions may lead people to think about classifying their own salaries and finding development opportunities.
Avon Tharcisius applied to PostFinance in September 2022 and now works as a Mobile App IT Business Analyst at PostFinance.
I found it transparent and open. As the salary range was specified in the job advert, I knew from the outset that we were on the same page over pay. That meant I could apply without having to worry about that.
I met all the criteria set out in the advert at the time of application and also had a few years of experience in IT business analysis. The salary range enabled me to estimate what my salary would be. Knowing that, I was well prepared going into the negotiations.
I think it’s more commonplace in IT than other sectors. The shortage of specialists is presumably a major factor in the salary range being given.
I believe it’s beneficial. It means that both the employer and candidates avoid false expectations and disappointment. I think it’s important that the specified salary range is agreed internally and that the applicant and company use this range as a guideline during pay negotiations.
Pay transparency avoids false expectations and disappointment.
Would you like to work for a financial institution that is playing a pioneering role in pay transparency and many other areas? We are seeking courageous doers.
