Nearly half (45%) of HR professionals have admitted their organisation is behind when it comes to pay transparency, according to research by HR and payroll software provider Cezanne.
Its Pay transparency uncovered: Are employers falling behind?, which surveyed more than 300 in-house HR professionals, also found that just 18% of respondents are ahead of the curve regarding pay transparency.
Nine in 10 (87%) said staff now expect clear visibility into pay structures, with transparency increasingly seen as a marker of fairness and trust. However, only 35% currently publish salary bands for all roles, with the drivers of change being market competition (49%) and employee pressure (27%).
Nearly a quarter (23%) cite fear of employee backlash as the biggest obstacle to better pay transparency. One-third (31%) are not confident explaining pay decisions to employees, with 57% fearing this miscommunication could cause resentment.
Just 6% said employee expectations around pay have stayed the same in the past two years, with 55% saying expectations have significantly increased.
Almost half (43%) believe employees care most about fairness across peers, outweighing competitive pay or progression, while 26% cite leadership resistance and complexity of pay structures as barriers to change.
Simon Noble, chief executive officer of Cezanne, said: “Labour’s proposed pay transparency reforms could transform the UK employment landscape, but our research shows many employers are still playing catch-up. With 87% of HR professionals saying employees now expect open pay structures, and nearly half admitting their organisation is behind, the pressure to act is clear.
“The challenge isn’t a lack of data or technology; it’s cultural and operational. Employers are grappling with complex pay structures, rising salary expectations and, in some cases, a fear of employee backlash. To make transparency work, businesses need a phased, supported approach built on strong leadership and confident communication. By embedding trust, fairness and consistency into their pay frameworks, organisations can turn transparency from a compliance risk into a genuine competitive advantage.”
