Want better applicants? Start with the salary

In New Zealand’s current hiring market, pay clarity is no longer a minor detail in a job ad. For many candidates, it is one of the first signs of whether a role is worth exploring. Recent research reported by CFO Dive found that 60% of job seekers would not apply for a role without a salary range, while unclear job descriptions, negative reviews and excessive unpaid tasks are also turning candidates away.

This shift shows that candidates are not only assessing pay. They are also looking for fairness, clarity and respect for their time. In a market where application volumes are high but alignment can be low, salary transparency helps both sides decide earlier whether the opportunity is realistic.

“Candidates are looking for that clarity upfront and employers are still holding back on the information.”

On a recent Market Update, Host Liz Punshon, Managing Director at people2people Group, was joined by Guest Nicole Consterdine, Recruitment Consultant at people2people Group, to discuss why salary transparency is becoming such a significant factor in recruitment.

Nicole explained that the disconnect comes from candidate expectations moving faster than employer behaviour. Many candidates now see salary information as a practical filter. Employers, however, may still prefer to leave pay open, flexible or reserved for later conversations.

This can create frustration on both sides. Candidates may skip opportunities because they do not know whether the role meets their expectations. Employers may receive more applications, but from people who are too senior, too junior or not aligned with the package.

Nicole noted that transparency is not simply about attracting more applicants. It is about improving the quality of the process. When salary ranges are included, candidates can better understand the level of the role, while employers can reduce wasted time reviewing unsuitable applications.

There are reasons employers hesitate. Internal pay equity, negotiation flexibility and commercial concerns can all make salary disclosure more complicated. As Nicole said, “I don’t think it’s necessarily a resistance to transparency. It’s more that employers are trying to balance the transparency with that internal risk.”

However, leaving salary out can slow hiring down. Candidates may assume the salary is below market, disengage early, or withdraw when expectations do not match. In a competitive process, that delay can cost employers strong talent.

Nicole also highlighted New Zealand public sector recruitment, where salaries are generally advertised, as an example of how clarity can support smoother hiring. By setting expectations upfront, employers can move candidates through the process more efficiently and reduce the risk of late-stage misalignment.

In 2026, salary transparency is likely to become more than a candidate preference. It is becoming a process advantage. Employers that are clear, fair and upfront may be better placed to attract aligned candidates, keep them engaged and make faster hiring decisions.

What can employers do to improve salary transparency?

• Include a realistic salary range wherever possible.
• Review internal pay equity before advertising new roles.
• Make job descriptions clear, specific and aligned with the salary level.
• Discuss pay expectations early if a range cannot be published.
• Avoid using vague terms such as “competitive salary” without context.
• Treat transparency as part of the candidate experience, not just a compliance issue.