No Salary? Why Not? The Evolving Landscape of Pay Transparency in UK Job Adverts

Why don’t companies post salaries on job adverts? The Evolving Landscape of Pay Transparency in UK Job Adverts

In a recent report by The Times, startling statistics have come to light: half of the job adverts in the UK no longer display salary or pay brackets. The once-strong push for pay transparency seems to be dwindling. According to research conducted by Adzuna in April 2023, only 51 percent of job adverts included salary information, marking a significant drop from the 61 percent recorded the previous year. This raises an important question: is the UK losing ground when it comes to pay transparency?

The Power of Pay Transparency

The practice of clearly stating the salary or salary range for a job role has long been considered attractive to jobseekers. It not only enables them to make informed decisions about whether a vacancy is competitive, but also reflects positively on the company hiring. It conveys confidence in the offered salary and the overall business, enhancing the company’s image according to potential candidates.

Conversely, when salary information is absent from a job description, it can signal to jobseekers that the package may not be competitive within the industry. Most jobseekers believe that businesses with attractive pay packages should have no issues about advertising them as a benefit.

Challenges for employers

The decision to display a salary on a job advert is not without its challenges. Employers must be mindful of several pitfalls, including the possibility of current employees seeing a similar role advertised at a higher pay rate, which may potentially lead to resentment within the workforce. Additionally, it may cause confusion among employees who are unaware of the background requirements, such as skills, years of experience, and level of responsibility, all of which influence pay. Without this essential context, employees might draw unfounded conclusions about their own salaries, creating a hostile workplace environment.

Also, when a salary range is specified, candidates often expect to be compensated near the top end of that bracket, regardless of their qualifications or experience. If they are subsequently offered a salary closer to the lower end, it can sour the relationship between the new employee and the business before it has really begun, or even lead to the rejection of the job offer.

What can employers do?

For employers contemplating a pay transparency policy in their workplace, conducting an audit of current pay levels is crucial. This step helps identify any inconsistencies or potential fairness issues. Substantial differences in pay could open the door for claims under the Equality Act 2010, which prohibits pay secrecy clauses that attempt to prevent employees from discussing pay information, especially when seeking to uncover differences linked to protected characteristics.

Employers should also exercise caution when engaging in negotiations with individual employees, as this could potentially run into conflict with the Equality Act. Studies have indicated that men are more likely to negotiate higher salaries than women, and agreeing to negotiations without considering current team salaries could lead to disparities and internal discontent.

It doesn’t appear that making pay transparency a legal requirement in the UK is going to happen anytime soon, but it is not entirely off the table. Employers should remember that salaries are just one component of the compensation package. Factors like broader employee benefits, as well as flexible or agile working arrangements, can influence a jobseeker’s decision, particularly in the hybrid, post-COVID world.

Transparency around pay remains highly attractive to most jobseekers, and when implemented thoughtfully, it can lead to increased interest from a deeper talent pool. The path to pay transparency requires careful consideration and a holistic approach to compensation. As the landscape continues to evolve, companies that strike the right balance are likely to attract and retain top talent.