Thousands of Gen Z workers in the UK are likely browsing through job applications as we write, dissatisfied with the lack of transparency over pay in their current jobs, and with the ambiguity surrounding potential new employers. But all that may be about to change.
Nearly half of UK employers plan to follow a common practice across the Atlantic of introducing salary ranges into their job listings.
About 48% of employers surveyed by Mercer International Inc. said: They will provide salary information in the next two years, compared to only 17% now.
Employers have historically been reluctant to engage in salary transparency, fearing that it would cause anxiety among current employees who might demand a pay increase or disagree with their higher-paid colleagues.
Several American states Laws have been put in place that force employers to disclose salary ranges on their job listings, but the UK and Europe have lagged behind on these regulations.
However, amid a tighter labor market, employers appear to be driven in part by a desire to attract top talent and retain their current employees.
Last year, Adobe Study the future workforce It found that 85% of Gen Z workers were “less likely” to apply for a job if the salary range was not listed on the application.
Gen Z is also more likely to discuss their salaries with colleagues, breaking the long-standing tradition of salary modesty among older generations.
“This seems to be a really positive thing for employers,” says Lucy Brown, director of DEI and pay equity consulting at Mercer. He said Bloomberg. “Employees who say they are paid fairly are more likely to say they understand why they are paid what they are paid.”
Most respondents to the Mercer survey said they were motivated by compliance issues, with the EU Pay Transparency Directive set to impose tougher laws on employers. The European Union will introduce guidance in June 2026 in an attempt to limit… Gender pay gapwhich she said was partly driven by unclear salary differences when applying.
However, the UK does not have any guidelines on salary transparency.
More employers are planning to introduce global frameworks to align salary transparency policies across their offices, suggesting that compliance requirements in one area are a much-needed incentive for employers to change their practices to encourage retention.
While bosses’ perceptions of pay transparency have skewed toward the idea of segmented workforces, studies show that it can motivate employees to work harder, especially those who perceive they are paid higher than their peers.
At the same time, employees have been motivated to seek new opportunities in the past thanks to the salary increases resulting from job hopping. While pay increases for changing jobs have declined in recent years, the current uncertainty about pay still inspires employees to make a change.
Mercer He studies A study from last year found that employees who stayed on got a 5.6% raise, while those who left got a 16.4% raise on average.
HR professionals view the desire to leave for higher pay as a matter of fairness. They hope that more salary transparency will rebalance those perceptions.