Salary transparency is set to become a legal requirement in the UK after the government announced plans to amend anti‑discrimination legislation, mandating that employers list pay details in job adverts.
Transparency builds trust.
New law makes pay details compulsory
The upcoming rule aims to eliminate hidden compensation and give job seekers clear information before they apply. Campaign groups have welcomed the move, saying that honest adverts should have been standard practice already.
Employers will need to include either a specific figure or a defined salary band in every vacancy posting.
Study finds most adverts fall short
Research commissioned by Reward Gateway | Edenred examined 9,646 recent job listings. The analysis revealed that three in ten roles omitted any salary information.
Even though 64% of candidates say they will not apply without a pay figure, the data shows a persistent gap between expectations and practice.
A flat paragraph of facts: among the ads reviewed, 1,009 listed water as a “perk,” 553 mentioned coffee, and 457 highlighted training, which is arguably a core requirement rather than an optional benefit.
The study also identified that 336 companies promoted the statutory 28 days of annual leave as a perk, most often in the charity, social care and sales sectors.
For workers, the lack of clear remuneration details can create uncertainty and deter qualified applicants, especially in competitive fields.
Confusing ranges can backfire
Salary bands typically present a minimum and maximum figure, allowing flexibility for experience and internal progression. However, the research found that 22% of candidates would skip a role if only a range was shown.
The average difference between the low and high ends of advertised bands was £9,887, regardless of seniority. Such wide spreads often raise questions among staff.
When employees see a range without context, they may wonder why they sit at a particular point, why new hires start higher or lower, and how performance influences future earnings.
Companies that cannot answer these questions risk eroding trust and losing talent to more transparent competitors.
How to make transparency meaningful
Genuine pay openness relies on a structured, regularly communicated compensation system, not merely posting a band. A common model uses a Min–Mid–Max scale anchored to market percentiles.
The minimum aligns with the 25th percentile, suitable for entry‑level hires. Mid‑point positions reflect the 50th percentile, while specialist roles can reach the 75th percentile or the top of the scale.
Building the scale on reliable market data helps ensure packages remain competitive. Clear frameworks give managers and staff a shared reference for where salaries can fall.
Managers need training on applying bands during hiring, negotiations and performance reviews. Equipping them with FAQs and sample scripts promotes consistent messaging across the organization.
Ongoing conversations about compensation, rather than annual reviews alone, reinforce understanding and sustain confidence over time.
When employees see the logic behind pay decisions and promotion criteria, motivation tends to rise. Deloitte research shows that firms using skills‑based pay are 63% more likely to hit targets and 98% more likely to keep top performers.
Regular audits of base pay, bonuses and allowances keep data current and help prevent bias. Sharing audit results with key stakeholders spreads ownership and reduces oversight risks.
From a practical standpoint, workers will likely feel more empowered when they can see exactly which competencies unlock higher pay tiers, making career planning less guesswork and more concrete.
Leadership emphasizes employee experience
Chris Britton, People Experience Director at Reward Gateway | Edenred, oversees recruitment, learning, DE&I and wellbeing initiatives. He stresses that a transparent pay system is essential for a positive employee lifecycle.
