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What Is DOE Pay? (With Advantages, Disadvantages and FAQ)

Salary requirements play a crucial role in a job applicant’s decision to pursue a position. A candidate’s salary requirement is also important for you as a hiring manager because you have a budget to uphold. Many jobs will now exclude salary ranges on their job postings, replacing it with the term DOE. In this article, you will learn what DOE pay is, how to discuss it with potential candidates and the advantages and disadvantages of using it.

What is DOE pay?

DOE is an acronym for «depends on experience» and is used in job postings to indicate that the job salary is based upon the candidate’s experience in that particular field. DOE gives employers the right to omit salary ranges in job postings. It is most often used for salaried positions where a salary range is available based on the skills a candidate brings to the organization.

How to discuss DOE pay with candidates

Here are important steps to effectively discuss and negotiate DOE pay with candidates:

1. Determine your salary range and budget

Research the average salary range for the open position you are hiring for. Take into account what the position will require of the candidate, such as education level and past years of experience, in addition to your financial budget. Decide on the highest salary you will offer regardless of the candidate’s qualifications.

2. Determine experience and skills most important for the role

Assess the common experience level, abilities and skills your job will require. Make a list of the skills and qualities a candidate must have to be considered. Also make a list of areas you will put into consideration, such as a candidate with less field experience, but more knowledge and education.

3. Get to know the candidate

During the interview, get to know more about the candidate’s background, qualifications and job-related skills to determine where they fall on your salary scale. You then want to establish what the candidate expects for salary. This will help you eliminate candidates who require more than your maximum salary. Keep in mind, that interested candidates may lower their requirements, so make sure to negotiate first.

4. Have a detailed salary negotiation

Once you have discussed the candidate’s experience and have learned their salary expectations, you can begin a salary negotiation. Start with an average offer that takes into account the applicant’s skills, your budget and their requirements. Some people may negotiate more than others.

5. Make your best offer

When negotiating, you can continue counter-offering as long as you want. Eventually, you want to give your very best offer and stand firm on it. The candidate will either accept or choose to pass on the opportunity.

6. Consider benefits

During negotiation, you can use benefits to your advantage for candidates you would really like to hire. If you cannot offer a higher salary, but can provide health benefits, this may appeal to a very interested applicant. Bonuses can also move negotiations to an agreement.

7. Know when to walk away

You may find during the interview that a particular applicant does not quite fit your needs. You may also find you cannot come to an agreement with someone and will need to retract your job offer.

8. Put the agreement in writing

Once an agreement on salary is made, be sure to put the amount in writing and have both parties sign it. This solidifies the salary agreement for legal purposes.

Advantages to using DOE pay

DOE pay has many advantages. Here are the top three:

Attracts candidates interested in the job

When money is taken out of consideration initially, there is an incentive to learn more about a candidate’s background, qualifications and skills before committing to a salary offer. DOE postings attract candidates truly interested in the position itself, rather than a lucrative pay and benefits package.

Provides negotiation power

DOE salary provides the power to negotiate, which can make a candidate feel more valued. People want to receive a salary that matches the worth of their skills and experience. Candidates who accept a position with a negotiated salary will likely feel appreciated, leading to increased productivity.

Keeps compensation private

Some companies prefer to keep employee compensation private. Leaving salary off job postings keeps it out of the workplace, helping maintain a positive, undisrupted work environment.

Disadvantages to using DOE pay

Here are some disadvantages regarding DOE pay:

Job seekers may avoid applying

A job that meets salary requirements is one of the top priorities for most job seekers. Job posts that include salary come across as more appealing and higher-paying than DOE pay posts.

Could attract inflexible candidates

DOE pay may attract applicants who are less flexible, instead of candidates willing and eager to learn. Some applicants may have stern salary requirements, making it less easy to negotiate pay.

May be unsuitable for small companies

Small companies will benefit less from a DOE job post, especially if only one position is open to fill. Large companies with multiple openings in the same position, like sales or copywriting, can utilize a salary range based on experience more effectively.

DOE pay FAQ

Here are some common questions answered about DOE pay:

Does «salary commensurate with experience» mean the same as DOE?

Yes, salary commensurate with experience means the job’s salary is based on the applicant’s experience.

What does DOQ mean?

DOQ stands for «depends on qualifications,» and is similar to DOE, but takes into account qualifications more than experience. DOQ pay considers skills, education and knowledge in addition to past experiences related to the position.

How do I determine the DOE salary range for my job posting?

Accessing salary surveys published by organizations and recruiting firms can give you an idea of the average salary range for the specific position you want to fill. Official employment statistics found online can also help. Also, consider the level of experience you require from the applicant and adjust the salary range accordingly.

How do I use DOE effectively in my job post?

The most effective place to insert «DOE» or «depends on experience» is under the salary or compensation section of your post. You can also include this phrase in the title of your post and the job ad.

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DOE Compensation

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DOE is an acronym used on job postings that stands for «depends on experience.» It typically reserves you the right to offer a salary based on a candidate’s experience, which is one of the main reasons for omitting salary ranges in job ads.

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Pros and Cons of Using DOE on a Job Posting:

Go in-depth into employee pay with this employee compensation plan. Also, learn more about OTE or on-target earnings compensation.

What does salary commensurate with experience mean?

«Commensurate with experience» means the same as «depends on experience» (DOE).

What is DOE compensation?

DOE, or «depends on experience» typically reserves you the right to offer a salary based on a candidate’s experience, which is one of the main reasons for omitting salary ranges in job ads.

What does Salary DOQ mean?

Salary DOQ stands for «depends on qualifications,» and works in a similar way to «depends on experience» (DOE).

How do I establish a «depends on experience» (DOE) salary range for my job posting?

Search the Bureau of Labor Statistics’ Occupational Employment Statistics database to access salary ranges for occupations by region, workplace, and more, or research salary surveys that are published by recruiting firms and professional organizations.

Also, research market rates for similar jobs on sites such as LinkedIn and Salary.com.

How do I use «depends on experience» (DOE) effectively in a job posting?

Add «depends on experience» (DOE) at the end of a job ad under the heading «Salary” or “Compensation.» You can also disclose the salary range in the ad, which will prevent candidates who aren’t interested in your range from applying.

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What Is DOE Pay?

Updated 4 March 2021

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What Is DOE Pay?

When job hunting, there are several ways that the salary for a role can be described on the job description:

Seeing ‘Salary DOE (Depending on Experience)‘ on a job description is quite common. This means that the pay for the role is based on the candidate’s experience; more experience commands a higher salary.

When job hunting, a role should not be disqualified because there is no defined salary. If the experience and job requirements are met, it could be a lucrative employment opportunity.

For employers, a DOE salary means the salary does not have to be displayed on a job description during recruitment; however, the DOE pay could include a salary range as an indication.

The phrase ‘salary commensurate with experience’ means the same thing.

Other acronyms, such as DOQ (Depending on Qualifications), which refers to a higher pay award for those with appropriate qualifications, may be used in the salary description for the role.

This means that candidates are likely to be paid more based on their education and skills rather than their experience.

A DOE salary can seem daunting; however, when applying for a role that does not state the salary, a range can be worked out using resources such as Glassdoor or LinkedIn.

Numerous websites aggregate information regarding pay based on various factors, like location, industry and qualifications.

Why Is DOE Pay Used?

A company that advertises a role with DOE pay does not usually have a specific budget for the job and is willing to pay more to get the right candidate.

Pay and benefits are a major draw for jobseekers; therefore, a company that offers compensation based on skills and knowledge can be attractive for good, qualified and relevant candidates.

For the candidate, DOE salaries should denote a potential employer that values knowledge and prior experience and is willing to offer remuneration based on that.

A position that allows for negotiation of salary could offer more options for additional benefits, as well as a higher pay rate.

Advantages of DOE Pay

Power to Negotiate

A job role with a specific set salary offers little potential to negotiate; therefore, those with more experience and a wider skill set are not compensated for their knowledge.

With a DOE salary, the candidate possesses the power to negotiate pay according to their perceived worth to the company.

Keeps Salary Confidential

Many companies want to keep pay confidential for many reasons.

For example, to prevent competitors from offering higher salaries to tempt good candidates or to ensure that there are no problems with current employees.

For example, if an individual is already employed in a similar role that is being actively recruited for, they could be unhappy if they learn that the offered salary is more than they are receiving.

Attracts Applicants with More Experience

If a candidate is experienced with a wide skill set, they are more likely to be attracted to a role that seems to demonstrate a willingness to compensate based on that experience.

Companies that offer DOE salaries tend to be those that understand the value an experienced employee can bring to the business and pay with that in mind.

DOE salaries are specifically targeting those that have appropriate experience, so if you are applying for a role that you are highly experienced in, you can expect to be well paid for it.

Attracts Applicants who are Genuinely Interested in the Role

Jobseekers searching for the highest salary possible might not be the right fit for a company; therefore, a DOE salary is likely to pass them by.

Only candidates who genuinely desire the position are likely to apply. Either way, it is a good way to immediately exclude unsuitable candidates.

Companies who are using DOE salaries want employees that are looking for a specific role or to work specifically for their company.

Disadvantages of DOE Pay

May Discourage Applicants Who Prefer to Know the Salary Range

In uncertain times, applicants might want to know the salary range before they apply, to allocate funds for bills, travel and cost of living considerations.

A good candidate could feel uneasy and discouraged from applying without prior knowledge of what to expect in regards to salary.

Jobseekers value clarity and may not want to risk the time and effort of attending an interview only to discover the salary range is not worthwhile.

May Attract Applicants who are Outside of the Salary Budget

Even if a company has no fixed budget for a role, they will have a top-level figure in mind.

A DOE salary might encourage top-level applicants; however, they may require top-level pay that the business is not in a position to support.

This can result in candidates reaching the interview stage but not progressing further because their salary needs are not met.

Not a Great Option for Smaller Companies with a Limited Salary Budget

Smaller companies may not be flexible enough to match the required salary for the experienced candidate that they would like to recruit.

Therefore, offering a set range might lower expectations and mean that candidates know what to expect when they apply.

DOE salaries are most suited to companies that have many positions in the same job role. It makes more sense to pay based on experience if they have a lot of sales staff, for example.

Hard to Compete with High Offers

A candidate might not want to continue an application if they have already received a high offer from another role, and without a range to consider, gambling on a DOE salary may not be the best option.

How Do Companies Determine a DOE Salary Range?

Companies decide on a DOE salary mostly through research.

HR and recruitment firms often have data from surveys to show what the pay is for similar roles across industries and by location, which is especially useful information for businesses.

There are government surveys that have been conducted (with results available online) that can provide useful statistics.

Similar information is also available on sites like Glassdoor and PayScale, although these might be considered anecdotal as they are populated by employees.

Businesses that are likely to use a DOE salary should assign a calculated pay range to each experience level to match the expectations of both the organization and the candidate.

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How to Negotiate a DOE Salary?

If you have been offered an interview for a role that offers a DOE salary, you are in a great position to negotiate your pay; however, this can be overwhelming if you are inexperienced or are unsure how to negotiate.

You can find more helpful information about negotiating pay in this useful article.

Be mindful that DOE could also be an acronym for Depending on Expertise.

If you have expert knowledge on a subject rather than direct hands-on experience, you can make a good argument that your expertise should command a higher salary.

In some cases, having expertise without matching experience might be more beneficial, as you will have knowledge of what needs to be done but not be set in your ways about the best ways to complete it.

Start High

If you have researched the position, you should have an idea what the salary range is likely to be for the role based on information for similar positions and companies.

Start near the top end to demonstrate your confidence in the position but be prepared to come down.

Be Flexible

Although it might not be the best option, you need to be prepared to come down on your first offer.

Remember that there might be other benefits that could boost your overall packages, such as extra holiday, bonuses or health packages.

Focus on What You Really Want

Is the role a perfect fit? Try not to get too hung up on the salary figure as long as it is above your minimum. Remember, there are other bonuses and benefits to the role that might be worth more than the salary.

Be Positive

Even if the offer you are given is lower than you want to accept, remain positive about the role and demonstrate that you want to accept the position before pushing for more.

Always be Prepared to Walk Away

Your knowledge of the probable salary range will have allowed you to identify your ideal salary, as well as the minimum you would be prepared to accept.

Do not be afraid to walk away if the salary does not match your expectations.

Final Thoughts

The uncertainty of a DOE salary can put some candidates off applying for a role; however, understanding that it allows applicants more power to negotiate their pay is a major draw for more experienced candidates.

Salary depending on experience and salary commensurate with experience are the same thing: the employer is willing to pay more for the best candidate that can bring the most in terms of skills and experience in the workplace.

Some job descriptions might offer a salary based on education, usually looking for qualified candidates with the acronym DOQ.

For employers, offering DOE salary with or without a range helps to keep salary information confidential and to ensure that the candidate pool consists of applicants who are more likely to possess the necessary experience.

As a job seeker, applying for a role that offers a salary DOE allows you the opportunity to command a pay rate that is based on the knowledge, expertise and experience that you can bring to a workplace.

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