What is DOE?
DOE is an acronym that stands for “depends on experience.” Employers use this in job descriptions instead of listing a specific salary if the candidate’s salary expectations could depend on how much previous work experience they have had in a related role or field. It also demonstrates an employer’s willingness to negotiate a salary with a job candidate based on their experience.
Employers may use EOE in a job description, which stands for “equal opportunity employment.” This term shows candidates the commitment of an employer to hire based on qualifications rather than factors relating to race, gender or ethnicity.
Advantages and disadvantages of using DOE in job descriptions
Using DOE in a job description can have several potential advantages and disadvantages, including the following:
A few advantages of using DOE in a job description include:
- May encourage candidates with a passion for the job rather than those with a focus on salary
- Provides candidates with an opportunity to negotiate their pay at the interview stage or when accepting a job offer
- Might help prevent feelings of inadequacy within your workplace due to pay differences
Some potential disadvantages of using DOE could include the following:
- Might cause certain eligible candidates to look elsewhere due to their desire for set salary expectations in the job description
- Could present issues with hirable candidates who expected a higher salary than the one you can offer using their DOE
- Could be less appealing to small businesses who want to fill a position quickly due to candidate uncertainty regarding pay
How to determine a salary range for open roles
If you’re considering including DOE in a job description, you might want to follow these steps:
1. Review previous methods for determining salary ranges at your company
When determining the salary range for open roles within your company, you can first review previous methods you used to determine existing employees’ salaries. This could help you establish fair parameters to evaluate candidates for new positions. If you’re just starting a company, there are two key methods that can be beneficial to determining salary range:
- Point method: The point method for determining a salary range uses a numerical system to determine a job’s worth within the company. This includes factors such as skill and education levels needed, the degree of responsibility within the workplace or any workplace safety concerns.
- Ranking method: The ranking method provides employers with a more simplistic approach to determining salary ranges within their company. In this method, employers determine salary range based on the hierarchical structure of the company, with entry-level employees getting paid less than those in leadership and managerial roles.
2. Look at competitor salaries for the same position
Another important factor to consider when determining a salary range is looking at competitor salaries for the same or relevant positions. You can do this by going on job search websites and entering a company’s name along with the job title. If your competitors offer a higher salary than you do for the same position, you might want to consider increasing the salary range. This could potentially attract top-tier talent to your company instead of your competitors.
3. Create a pay grade system
A pay grade system, or salary band system, is an internal structure that helps determine the salary ranges of your employees from the bottom up. it uses factors such as organizational hierarchy, education level, previous work experience and any other factors you deem necessary for influencing pay scale. To create a pay grade system, you should work with your HR department and company officials to set pay grade levels such as pay grade 1, 2, 3, 4 and so on.
4. Create salary ranges within each pay grade
After you create a pay grade system, you can further differentiate the salary ranges within each individual pay grade. For example, if pay grade 1 has a base salary of $30,000 per year, you could include steps within the pay grade to increase salary to $33,550, followed by $36,550 and then $39,000 per year. In pay grade 2, the base salary could be $40,000 followed by $43,550, then $46,550 and finally $49,000 per year.
Tips for communicating pay ranges to candidates
There are a variety of ways you can successfully communicate pay ranges to job candidates. Here are some tips to try before and during your discussion:
- Review salary expectations for the position within your state.
- Review salary ranges for the same or similar positions within your company.
- Establish the highest possible salary you could provide them with.
- Look over the candidate’s application materials again.
- Highlight potential perks and benefits unrelated to pay scale.