Transparency in Salaries: A New Trend in UK Job Listings
As we speak, countless Gen Z workers in the U.K. are likely sifting through job applications, frustrated by lack of clarity about pay scales in their present employment and the vagueness they encounter in potential future jobs. However, this scenario might soon change.
Adopting American Practices
Almost half of U.K. employers intend to adopt a widely accepted practice from the United States, that of including salary ranges in their job listings. According to a survey conducted by Mercer International Inc., 48% of employers expressed their plans to incorporate salary details within the next two years. Presently, only 17% provide this information.
Initial Reluctance
Employers have traditionally been hesitant to disclose salaries, apprehensive that it might spark dissatisfaction among existing employees who could then demand pay increases or harbor resentment towards colleagues earning more.
While several U.S. states have enacted laws requiring employers to disclose salary ranges in job listings, the U.K. and Europe have been slow in implementing such regulations.
Benefits of Transparency
However, in a competitive labor market, employers seem partially driven by the need to attract top-tier talent and retain their existing workforce.
A study conducted by Adobe’s Future Workforce last year revealed that 85% of Gen Z employees were “less likely” to apply for a job if the salary range wasn’t specified in the application.
Gen Z workers are also more inclined to discuss their salaries with colleagues, breaking from the older generations’ tradition of keeping pay details private.
“It seems like a really positive thing for employers to be doing,” said Lucy Brown, a DEI and pay equity consulting leader at Mercer. “Employees who say they’re fairly paid are twice as likely to say they understand why they’re paid what they’re paid.”
Compliance and Global Frameworks
Most employers who responded to Mercer’s survey indicated that they were driven by compliance issues, with the EU Pay Transparency Directive set to impose stricter regulations on employers. The directive, aimed at reducing the gender pay gap, will be introduced in June 2026.
Interestingly, the U.K. does not currently have any guidelines on salary transparency.
Many employers plan to implement global frameworks to coordinate salary transparency policies across their offices, suggesting compliance requirements in one region could encourage other regions to adjust their practices.
Impact on Employees
While employers’ perceptions of pay transparency have traditionally leaned towards causing divisions within the workforce, studies suggest it could instead inspire employees to work harder, especially those who realize they earn more than their peers.
Historically, the potential for a salary increase has motivated employees to seek new opportunities. A study by Mercer found that employees who changed jobs received an average 16.4% pay increase, whereas those who remained in their current positions received a 5.6% raise.
HR professionals view the decision to leave for higher pay as a question of fairness. They hope that increased salary transparency will help correct these perceptions.
