While only 8-9% of UK employers publish pay ranges externally, nearly half (48%) have committed to sharing data, according to research by financial services firm Mercer.
Its UK pay transparency study, which took data from nearly 100 businesses representing more than one million employees, to discover gender pay gap reporting challenges or concerns surrounding employees’ understanding of requirements, also found that compared to employers worldwide which are planning significant increases in the disclosure of pay information, the percentage of those sharing hiring pay ranges on job postings and employee pay ranges is expected to rise from 41% to 87%. Four-fifths (81%) of organisations have developed, or are planning to develop, a global strategy and approach towards pay transparency.
In terms of pay transparency in industries, 78% of the employers surveyed in fast-moving consumer goods (FMCG) are engaged with, or planning to address, pay transparency within one to two years. One-third (33%) of those in financial services and 28% of those in professional services are planning the same.
Additionally, 30% of UK employers said they calculate their ethnicity pay gap, with 7% reporting it internally and 10% reporting it externally.
The research highlights that due to the upcoming EU Pay Transparency Directive, and the growing demand for transparency, organisations should start preparing now for greater openness on pay, despite no current legislative mandate.
Lucy Brown, UK diversity, equity and inclusion and pay equity consulting leader at Mercer, said: “Our report shows that to stay competitive and attract global talent, UK businesses need to recognise this shift and speed up their adoption of pay transparency. Disclosing pay used to be a taboo subject, but research shows more employees are sharing this with each other.
“UK employers delaying may face challenges in attracting and retaining top talent as competitors embrace transparency. It is vital for businesses to begin the work now to be prepared to align with best practice, attract top talent, and foster a culture of equity and fairness.”
