Only half of organisations report salary information in all job adverts
XpertHR® research reveals only half (50%) of UK organisations include salary information in all job adverts, with 29% including salaries in some. The findings reflect the ongoing pay transparency debate among reward, compensation, and diversity professionals, as the UK continues to fall behind on implementing legislation while the EU introduces mandatory salary listings.
The data spotlights sector-specific variations in pay transparency efforts, with the private sector lagging at a 26% adoption rate, behind public and not-for-profit organisations which have embraced salary transparency in all job adverts at rates of 83% and 79%, respectively.
Research by XpertHR – whose reward benchmarking data and pay equity analytics helps organisations identify and address pay disparity gaps – and Executive Networks indicates that over three-quarters (76%) of senior HR leaders consider pay transparency a priority. However, only half are actually transparent about salary information.
Companies with transparent job adverts report a 9% gender pay gap, as opposed to 19% for those without. Using pay transparency alongside pay analysis tools, HR, reward, and compensation leaders can work together to establish fair pay practices within their organisation. With an open culture facilitated by pay transparency, underpinned by data-driven fair pay practices, organisations can engage in effective discussions with their teams and create pathways to narrow pay gaps at a faster rate.
XpertHR analysis also revealed a higher proportion of females in top paying roles in organisations that disclose salary in all job adverts, with a median of 65%. This figure drops to 33% in organisations with partial pay disclosure, and further declines to 24% in those with no salary information in adverts.
By developing a pay grading structure that is based on the most recent data available and aligned to business objectives, organisations can boost senior level representation and enhance talent attraction and retention. Yet, with more transparency, salaries face closer scrutiny. It is therefore vital that those offered are benchmarked against the current market and are competitive.
Dr Zara Nanu, director, Fair Future of Work Strategy, at XpertHR, comments: “While the UK Pay Gap Reporting does not yet address pay transparency in a significant way, there is nothing stopping organisations going beyond the legislative requirements. By harnessing technology to analyse and address core pay disparity gaps, pay transparency becomes more attainable for total reward and compensation leaders. This proactive approach not only appeals to new talent but encourages constructive pay discussions with existing staff too. This can lead to a more engaged and motivated workforce and ultimately improve retention.”
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