Employers Are Deflating Salaries

Employers are using range deflation, posting artificially low salary ranges to avoid rising payroll and to limit the demands of potential hires while preventing existing workers from finding out they are underpaid. The high end of a typical pay range should be between 40 percent and 60 percent above the minimum. However, analysts have found that more than 12 million job listings taken from more than 100 sites indicate the range is 28 percent above the minimum. Employers risk eroding trust when new recruits accept the job offer and discover that the range is higher than what they were told.