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What Is DOE Salary? [Pros + Cons]

By Caitlin Mazur - Sep. 21, 2022
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Writing job postings can be complicated and time-consuming, especially when it comes to explaining the compensation for the position. The acronym DOE can be helpful with this, and many companies use it.

In this article, we’ll explain what DOE means, the benefits and downsides of using it on a job posting, and tips on how to use it effectively.

Key Takeaways:

  • DOE stands for “Depends on Experience.”

  • Many companies put DOE on their job descriptions to save time and attract more qualified candidates.

  • If you put DOE on the job posting, be ready and willing to negotiate salaries and benefits with job candidates.

What DOE Means

DOE stands for “Depends on Experience,” and it simply means that candidates with more experience will be offered a higher salary than those with less experience. It’s common for companies to put this under “Salary” on job descriptions rather than an actual salary range.

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Alternatives to DOE

Some companies use one of these terms instead of DOE, but they all mean essentially the same thing:

  • Commensurate with Experience

  • Depends on Qualifications (DOQ)

  • Salary based on experience

Benefits of Using DOE

There are a few reasons why so many companies use DOE on their job descriptions, including finding higher quality candidates and simplifying the job posting process.

  1. It helps thin out applicants who are only in it for the money. When applicants can’t see the salary on a job posting, you know they are probably more interested in the job itself rather than in the high salary you may pay them.

    At the same time, putting DOE on the job posting also attracts candidates with more experience, as they know they can use their experience and skills to negotiate a higher salary. This is a win-win for both the company and the employee.

  2. It simplifies the job posting process. When you have a job opening, you likely want to fill it as quickly as possible, but the process of writing and posting the job description can take a long time. By simply putting DOE in the salary section, you can post the job description and then figure out what the salary range will be.

  3. It allows you to match the salary to the skills. Yes, you may be willing to hire a less experienced candidate who doesn’t exactly match the qualifications you had in mind, but you don’t want to pay them the same thing that you’d need to pay a candidate with many years of experience.

    At the same time, if you find a candidate who is overqualified for the position, you may be able to convince them to take and stay at the job with a higher salary and better benefits.

    By putting DOE on the job description, you give yourself the freedom to not overpay a less qualified employee or underpay a more experienced one and lose out on their talent.

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Downsides of Using DOE

There are a few downsides to using DOE, including deterring job seekers who want to see salary ranges, missing out on candidates that would make eager, trainable employees, and wasting valuable time in the hiring process.

  1. It can deter job seekers. If your company is the only one that didn’t post a salary range, jobseekers may avoid applying to your position because they assume that your salary range is lower than your competitors who did post the range and, as a result, that it isn’t worth their time.

  2. Sometimes ultra-experienced candidates aren’t the best. One of the advantages of DOE is that it can attract more experienced employees.

    While there is something to be said for finding an employee who has a wealth of experience and skills to add to your company, some positions may be better served by less experienced but eager employees you can train from scratch.

    These employees will likely have fewer bad habits and be less stuck in their ways, which could make them more effective in the long run, even though they will initially require some additional training.

  3. It can waste time. Even though applicants don’t know the salary range when they apply for a position, the company does, and sometimes that doesn’t match the candidate’s expectations even after negotiation.

    Unfortunately, the two parties often only find this discrepancy after at least one round of interviews, if not more. While this is a risk that comes with the hiring process, companies may be able to reduce the likelihood of wasting their time trying to woo an unwinnable candidate by posting a salary range upfront.

Tips for Using DOE

  1. Have a salary range set. Before you interview applicants, establish a salary range connected to different amounts of experience or qualifications.

  2. Be ready to negotiate. DOE salaries are almost always open for negotiation, so have a maximum salary set that you’d be willing to negotiate to, as well as some additional benefits you can throw in if you can’t meet the candidate’s salary expectations.

  3. Ask the applicant their expected salary. This could give you a better idea of what it would take to convince them to take the job. You don’t have to (and shouldn’t necessarily) meet it with your first offer, but you’ll know if you have wildly different expectations earlier rather than later, which can save you time and effort.

  4. Consider posting a salary range along with “DOE.” If you have a salary range set before you post the job listing, consider putting it on the listing (this may even be a requirement in some states).

    Giving candidates a better idea of what you’ll be offering could help you weed out applicants who want more than you can offer and help draw in candidates who are skeptical of job postings without salary ranges.

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DOE Salary FAQ

  1. How does experience impact salary?

    Experience impacts salary by increasing it. Generally, the more experience a candidate has, the higher their salary will be. This is because candidates with more experience typically bring more expertise to the company than a less experienced worker would.

    More experienced employees also often need less training and can contribute a higher level of work more quickly, all of which increases their value to the company.

    In addition, companies often recruit experienced employees to join their organizations by offering higher pay and better benefits, so the better you pay your experienced employees, the better chance you have of keeping them around.

  2. How do I mention salary on a job posting?

    You should mention salary on a job posting by creating a separate section called “Salary” or “Compensation.” This way, candidates can skim the posting to find the information they’re looking for.

    If the salary for a job will depend on the candidate’s experience, put “DOE,” which stands for “Depends on Experience.” This will let job seekers know that the more experience they have, the higher their salary could be. It also communicates that the salary is negotiable.

    You can also post the pay range you’re going to be using along with “DOE” to give candidates a better idea of what you’ll be offering. This can help you save time by immediately dissuading candidates who have higher salary expectations than you can meet.

  3. How do I establish a DOE salary range for my job posting?

    You establish a DOE salary range by researching average salary rates for a particular industry, location, and experience level. The Bureau of Labor Statistics is a good place to start, and there are plenty of recruiting firms and similar organizations that have conducted helpful studies of their own.

    It’s also a good idea to look at job boards to see what your competitors are offering for similar positions. After all, even if you have an accurately researched salary range, it won’t do you much good if candidates can earn more for the same job up the street.

    When you’re establishing your salary range, remember to include benefits such as health care and paid time off in your calculations. (These are important for salary negotiations too.)

Author

Caitlin Mazur

Caitlin Mazur is a freelance writer at Zippia where she has written 140+ articles that have reached over 1 mil viewers as of June 2023. Caitlin is passionate about helping Zippia’s readers land the jobs of their dreams by offering content that discusses job-seeking advice based on experience and extensive research.

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