Marvin OnumonuThe European Union (EU) pay transparency directive has started a shift in pay culture in the UK, with three quarters of firms planning to share pay ranges with staff, according to the 2025 Pay Transparency survey by WTW.
The survey found 76% of UK companies intend to share individual pay ranges with employees and 70% plan to share pay range details with external candidates.
This happened even though the directive does not legally apply in the UK.
The move was mainly driven by regulatory requirements (59%), employee expectations (46%) and company values (41%).
The data also showed UK firms are still less likely to share pay information compared to other countries.
Employers said the main reasons for holding back were concerns about an increase in questions from staff and managers (73%), more pay negotiations (55%) and worries about whether managers can explain pay properly.
Eva Jesmiatka, europe lead on pay & career equity at WTW, said: “We’re starting to see a cultural shift take place around pay in the UK despite the fact that UK companies are not directly impacted by the EU Pay Transparency Directive.
“Companies recognise that increased pay transparency will become a new reality which can support their employer brand and build competitive advantage in the talent market.
“In order to prepare for becoming more transparent there are some important fundamentals for companies to get right.”
Jesmiatka added: “These include robust job and rewards structures, and objective HR policies and processes to ensure the delivery of equal pay.
“In addition, it will be important for companies to look at their future ambition for pay transparency and define how transparent they aspire to be.”
The survey also found 62% of firms use metrics to measure the impact of pay transparency, with the most common being changes in the gender pay gap and employee engagement.
Just 13% of companies are planning to use artificial intelligence (AI) to support their pay transparency work, mainly because of concerns about data privacy and how systems fit with HR tech.
Gaby Joyner, head of employee experience europe at WTW, said: “With many organisations planning to take a global approach to their pay programme communication, organisations need a clear, consistent and well-documented approach to disclosure to ensure accurate data is shared with candidates and employees.
“Educating relevant stakeholders and building employee trust is paramount in this process, as well as leveraging relevant technologies to support a clear and transparent communication process.”
