Pay & Salary

What is DOE pay, and what does it mean for you?

June 11, 2021

The term DOE pay is frequently used in job postings and plays a crucial role in one's choice to apply for a job. This term provides employers with several benefits that can bring in top talent. Below, we discuss what DOE pay is, how to discuss it with potential candidates, and how it can benefit the lives of employers. Moreover, we answer any questions you may have about this salary model.

What is DOE pay?

DOE stands for "depends on experience" and is generally included in the description of job postings. DOE pay means the employer advertising the job posting is prioritizing the candidate's experience over their salary. Moreover, job postings that include DOE pays will not include a prospective or estimated salary on the posting. Employers who use these pay models likely have a salary range that is negotiable depending on the applicant's experience and expected salary.

Discussing DOE pays with candidates

To begin, here is some information about candidate interviews involving DOE pay.

Figuring out your salary

When posting a job position that includes DOE pay in the description, you should research the average pay for those positions. You should also consider what the position demands of those applying. If you're looking for candidates who have post-secondary education, for example, you should expect to add more money to your budget.

How is this different from DOQ?

While DOE stands for depends on experience, DOQ stands for depends on qualifications. With both of these acronyms, the employer or hiring manager will be willing to pay more for a candidate who has more experience and/or qualifications.

Which skills are you looking for from candidates?

Another thing to consider about DOE pay is the skills you're looking for in candidates. When you're preparing the job description, you should include a list of these skills and any other information you'll take into account. Some employers, for example, state that they're willing to hire someone who has less professional experience if they've acquired enough knowledge during their schooling.

Learn about each candidate

When you're interviewing candidates, you should also consider learning more about the people you're interviewing. This can bring up more skills and qualifications that will show you where the candidate falls on the DOE scale. From here, you can ask the candidate what they want to get paid and determine whether they fall within the range of your minimum and maximum salary. If the candidate expects a salary that goes beyond your maximum budget, you can always try to negotiate with them. Those who are really interested in the position may be willing to negotiate the salary.

Salary negotiation

We partially discussed this already, but salary negotiation will take up a considerate portion of the interview. This will generally take place after the candidate has informed you of their experience, and after they've told you their expected salary. If you've already done research about average salaries for these positions, you should start by offering those numbers as prospective salaries. From here, you can begin to negotiate a higher or lower salary for the candidate. You can go back and forth on this as much as you want, but keep in mind that you should have a maximum. If you see that the candidate is continuously asking for more money, feel free to offer them the maximum salary.

Don't forget about benefits

When hiring a new candidate, it's important to remember which benefits you're offering. Those who cannot offer candidates high salaries may want to consider investing in a bigger bonus and benefits plan, which will make candidates keener to accept lower salary offers.

About saying no

There are times in an interview when you know that a candidate is not the right person for the job. When this happens, it's okay to end an interview sooner than you expected. If neither of you can come to an agreement based on the DOE pay, you can walk away from the job interview.

Put job offers in writing

When you do reach an agreement with a potential employee or candidate, make sure you put this in writing. The job offer should then be signed by both you and the applicant. From here, you'll both be legally responsible for the contents of the contract. Some contracts, for example, will require applicants to complete a trial period before receiving or having access to their benefits. Alternatively, some contracts can demand three weeks' notice should the applicant ever decide to resign from the position.

What are the benefits of DOE pay?

If you've read this far and are interested in learning more about DOE pay, here are some of the benefits associated with this model.

It attracts the right applicants

When you include DOE pay in a job description, you're telling potential candidates that money isn't as important as their experience. This will bring in people who have higher levels of experience and who have interesting backgrounds. During interviews, recruiters are also more likely to get to know their candidates and consider their qualifications. The applicants you attract with this pay model will also be more interested in the position than your benefits and salary.

It allows you to negotiate

A DOE pay allows you to negotiate the terms of the employment contract including the pay. Those who apply to the job knowing you're going to use a DOE pay model are likely motivated to have a job with a salary that matches their extensive experience. As such, those who are hired under these models will feel appreciated and motivated, which will lead to an increase in productivity and employee satisfaction. Moreover, employees who are paid under this model will take fewer sick days and be more loyal to their employers.

It keeps the expected salary private

When you're advertising a job posting with a DOE pay, you don't need to include any numbers for salary or compensation. This is beneficial for those who want to have a healthy work environment because employees will not know what their colleagues have as a salary.

The cons of DOE pay

Now that you know what DOE pay is and what its various advantages are, we can discuss what the disadvantages of using this model are.

Some potential applicants won't apply

Because job descriptions with DOE pay do not have salary expectations included in the descriptions, some may avoid applying for the positions. When job seekers search for jobs, a DOE pay won't appear in filters that request specific salary minimums. Moreover, some may overlook job postings that don't include these numbers.

About flexibility in potential applicants

Job descriptions that mention DOA may not attract flexible applicants. As is true of any job or job posting, some applicants already know how experienced they are and what they can earn for this experience. As such, negotiation can be more difficult. This doesn't need to be a bad thing; after all, if the applicant's expected salary falls within your range, you can still afford to hire them.

It's harder for small companies to use DOE pay

Large companies benefit greatly from DOE pay because they likely receive several applicants for every open position. Smaller companies, on the other hand, won't receive as many applicants and, as such, will experience more difficulty finding someone within the pay range they're looking for.

FAQ about DOE pay

Until this point, we've spoken about DOE pay as well as its advantages and disadvantages. Here are some answers to common questions we haven't answered thus far.

What is the difference between DOE and salary commensurate with experience?

These terms have the same meaning. A job description that includes salary commensurate with experience will also pay employees with a specific salary depending on their experience.

Is DOQ better than DOE?

Neither is better than the other. Depending on your needs as a recruiter or employer, you may want to hire applicants depending on their experience or qualifications, but both options are appropriate.

How do I know which salary range is appropriate for the position I've posted?

The best way to know what the salary range of your job posting is to research similar positions. There are websites available that provide you with the statistics of similar jobs and their approximate salary ranges. Once you have these numbers, you can compare your expectations to the requirements of applications listed in your research and adjust the salary depending on those statistics.

How to use DOE properly

If you're wondering where you should place the DOE pay in the job posting, it's generally suggested to write this term under the salary section of the job post

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