Employers will have to publish salary information in job adverts under government proposals designed to tackle pay discrimination and strengthen equal pay protections.
The plans would introduce a statutory requirement for employers to disclose pay information during recruitment, with the aim of greater transparency helping to prevent discriminatory pay practices before they arise.
The proposal will require:
• employers to publish pay information in job adverts;
• where no advert is used, employers would instead have to provide the information in writing before a candidate attends an interview.
Whether organisations should publish an exact salary, a salary range or a benchmark rate, and whether information beyond basic pay, such as bonuses or other contractual conditions, should also be included is still under consultation.
Why does the UK government want pay ranges in job adverts?
The policy thinking is that pay transparency at the recruitment stage can prevent discrimination before it happens rather than relying on people to bring a tribunal claim once the damage is done. The government’s reasoning includes that it:
• encourages employers to evaluate roles and set pay consistently before they start recruiting, which should reduce subsequent disputes over opaque pay structures;
• addresses the “disparities in information” in hiring, where the employer knows what it is willing to pay and the candidate doesn’t, which can cause assumptions about women, ethnic minorities or disabled candidates to creep into pay decisions and result in lower wages for these groups;
• gives candidates the information they need to make an informed decision about whether to apply, supporting a fairer job-matching process; and
• helps employers filter out candidates whose pay expectations don’t match the role before interview, saving everyone’s time.
What does pay transparency in job adverts mean for existing staff?
Publishing ranges externally inevitably makes them visible internally too. Employers should expect some pressure and tension from existing staff who see a published range and feel it doesn’t match what they are being paid, particularly in sectors or roles where pay has traditionally been kept close to the chest, such as senior or executive positions.
Questions regarding pay equity and transparency can go to the heart of employee trust. In light of this, employers should not underestimate how greater transparency in recruitment processes may impact their relationships with existing staff.
What should employers do about pay transparency in recruitment now?
This is just a consultation. Actual legislation may be some way off yet. But it’s not a reason to do nothing. Employers should consider the following:
• start reviewing current job advert templates and pay-setting processes now, so there is time to adjust before any statutory deadline lands;
• consider discussing these arrangements with any recruitment providers to explore how you can collaborate to comply with any future legislation;
• think about whether existing (or planned) job evaluation frameworks are robust enough to support salary ranges that would stand up to scrutiny;
• keep an eye on how the detailed regulations develop, given so much of the substance of this proposal has deliberately been left for later.
The practical takeaway is that employers do not need to wait for final regulations before preparing. Reviewing job advert wording, salary range methodology, recruitment agency controls and internal pay governance now will make any future transition smoother.
For assistance email nicola.goodridge@goodhr.co.uk or call +44 7917 878384