A UK Push for ‘Say What You Pay’?
In a key move, thePrime Minister says he will be pushing pay-transparency legislation thathas created difficulties in the EU. Will Britain handle it more smoothly?
It’s a seemingly simple question that, in the age of pay transparency, has turned into a mounting and complex issue: How much does that job pay?
In a key development, the UK, which has long resisted compelling firms to post salary ranges, will now consider a new law requiring it. The proposal for a “say what you pay” law isn’t a major surprise, given widespread support from job applicants and recent employee-friendly moves from the government. But experts say its implementation could be tricky on a wider corporate level, and indeed, several countries in the EU have delayed following through on their own pay-transparency requirements. “For this legislation to work, the goalposts and detail need to be clear, and this takes time to agree on,” says Mark van Zon, a senior client partner in Korn Ferry’s EMEA Pay Equity practice.
In an interview with the BBC, Prime Minister Andy Burnham said the government would bring forward legislation “as soon as possible,” but urged firms to start posting pay ranges “now.” Supporters of the law say it will help candidates searching for work in a tough job market and create more equity at companies. And while the success of government measures is never assured, opposition at this point does not appear strong. Indeed, surveys show that there is already some UK post salary information in job postings.
The UK will need to navigate pay transparency better than many EU countries have done thus far. The EU law was first announced in 2023, with an implementation deadline of last June. The rollout has been spotty, however, with only a handful of countries meeting that deadline, and many others yet to do so—despite the European Commission saying there would be no exceptions. “The EU members are operating at different speeds,” says van Zon. “The patchwork approach to the legislation introduces complexities into the reporting, measurement, and communication process."
For his part, Ian Milton, a Korn Ferry senior client partner in the firm’s Workforce Reward for UK and Ireland business, believes the private sector still needs to do “quite a lot of work” to make pay transparency a reality in the UK. “We may see nuances that both advance and hinder implementation in the UK,” he says.
Beyond the details of the law, many firms struggle mightily to explain pay ranges to employees—in and of itself an argument for organized pay tiers and better communication. “The difficult part is not publishing pay. It is being able to explain and stand behind it,” says Claire Field, a Korn Ferry senior client partner and pay-equity expert.
In the US, no federal law requires pay-range disclosures on job postings, but multiple state and local governments do. The original goal of this measure—pay equity among race and gender—remains elusive, as it does in the UK and EU, says Joanna Abeyie, founder of people, data, and culture consultancy Blue Moon and Partners. “We’ve had years of organizations publishing gender pay gaps yet significant disparities exist,” she says. “That tells us something important: Making inequities visible does not automatically change decisions and organization structures.”
Backers of the UK legislation say they are hopeful it will energize the country’s younger workforce, which has some of the highest unemployment rates in Britain. “Younger workers already expect it,” says Drew Hill, a London-based senior client partner for Korn Ferry. “Not seeing it is a red flag.” He believes the legislation’s biggest impact will be within firms themselves. “Once a graduate can see what new joiners are being offered, they’ll ask why they are being paid differently.”
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