Pay transparency: Are UK employers ready?
How to effectively address and prepare for greater pay transparency
Pay transparency: Are UK employers ready?
How to effectively address and prepare for greater pay transparency
17 October | 4PM UK
A growing focus on pay transparency in the UK
To understand the dynamics around pay transparency among UK businesses today, Mercer surveyed more than 100 organisations between May and June 2024.
Our survey revealed that half of UK employers are addressing or planning to address pay transparency within the next one to two years, despite the lack of specific UK legislation. With more than two-thirds (81%) developing a global pay approach, it’s clear that this is partly driven by the global focus on pay transparency.
Pay transparency covers a broad range of topics, with the communication of pay ranges often the most visible. Our research indicates a growing trend in the market towards communicating these ranges. Currently, 59% of organisations are either communicating or planning to communicate pay ranges internally. And while only 13% are sharing these ranges externally in job postings, 48% intend to share them externally in the future.
The drive for pay transparency is fuelled by the need to stay competitive in a global talent market, a commitment to diversity, equity, and inclusion (DEI) and ethical business practices, as well as the forthcoming EU Directive. Compliance is also a significant factor, with more than half (52%) of respondents in our UK pay transparency survey citing it as a key motivator.
Industries like fast-moving consumer goods (FMCG) and financial services are leading the way, while sectors such as professional services and oil and gas are slower to act on being transparent around pay.
To help organisations navigate this shifting landscape, preparing for pay transparency is critical. This involves conducting a readiness assessment, focusing on data collection and stakeholder engagement, and setting a clear vision for transparency.
As the UK moves closer to adopting transparency measures, whether through market forces or future legislation, organisations must be prepared to act.
Pay transparency: Are UK employers ready?
- UK DEI, Pay Equity and Pay Transparency Consulting Leader
- Senior DEI and Reward Consultant, Mercer UK
- Rewards Managing Consultant, Mercer