Salary transparency can be widely defined as openness about employee compensation. For employees, this means sharing salary and benefits information. For employers, it involves developing a workplace culture where employees can freely discuss pay without fear of negative consequences for themselves or the company.

Salary transparency sits on a spectrum – from total openness, where pay and benefits are published for all to see, to total opacity, where compensation details are closely guarded. In the middle, there is partial transparency, where companies may disclose specific salaries or share salary expectations in job postings, but do not provide comprehensive access to all salary information. For example, Otta’s (now Welcome to the Jungle) salary transparency champions list highlights UK-based companies such as Lush and Cancer Research UK as leaders in transparency for listing salaries in 100% of their job ads, though this applies only at the hiring stage. On the opposite end, there is no transparency, where salary information is completely lacking and not openly shared.

Of course, transparency isn’t without its tensions. Some leaders worry it could lead to internal friction or employee dissatisfaction. But data increasingly shows the opposite: when done right, it builds trust, not resentment.

Where the UK stands on salary transparency

Many job advertisements in countries like Germany, the Netherlands, and Italy do not directly mention salary information. However, in these European countries, applicants are directed to publicly accessible information about collective bargaining agreements establishing wages and working conditions for certain positions. Consequently, in terms of salary transparency in job postings, the Netherlands has a 49.7% rate, Germany 23.7%, and Italy 23.3%. In contrast, the inclusion of salary details in annual average UK job postings has grown from 47.7% in 2019 to a high of 71% in 2024. However, the data on salary transparency within job postings does not paint a complete picture of salary transparency among individuals or represent a shift away from British tradition.

In fact, research indicates that nearly 20% of Britons keep their earnings secret from their partners. Furthermore, Indeed’s data reveals considerable differences in salary disclosure across sectors, with personal care and home health roles having the highest disclosure rates and insurance jobs the lowest. While the EU Pay Transparency Directive – effective in June 2026 – may highlight the lack of enforced salary transparency in non-EU countries, salary transparency in the UK is very much in the hands of employers and employees.

Far from being a ‘nice to have,’ salary transparency is key for employers to create a healthy, engaged workforce and to remain competitive in recruiting top industry talent.

Employee trust and morale

Being transparent about pay within your organisation can foster a sense of belonging and trust among employees. 71% of employees believe that pay transparency positively impacts job satisfaction. Employees who understand their compensation gain insight that helps them navigate their career paths, especially since knowing the salaries of higher positions can motivate them to strive for advancement. Companies that promote transparency around compensation can eliminate secrecy and minimise the time employees spend trying to uncover this information.

Meeting employees where they are

Data indicates that employers for higher-paying roles seldom disclose salary information in job postings. This may be due to the complexities involved in valuing these positions. Consequently, employers expect candidates to negotiate based on their qualifications and experience. However, the lack of transparency regarding salaries in these sectors can create confusion for job seekers, making it challenging to determine if positions meet their salary needs or expectations.

Indeed’s research found that nearly two-thirds (61%) of job seekers want to see not just a salary range but additional benefits such as annual leave (54%), bonuses (48%), and healthcare (38%) in job adverts. Organisations with high salary transparency show candidates that they understand compensation is part of job satisfaction and overall employee wellbeing. These employees will likely receive more applicants and higher-tier talent than those who refrain from disclosing salary information.

The bottom line for employers

Companies that actively support their employees by listening to their needs, such as the growing demand for greater salary transparency, tend to experience higher productivity, lower turnover rates, and increased employee satisfaction. Since 61% of job seekers value pay transparency, implementing it can enhance job satisfaction. In turn, this supports key drivers of workplace well-being, including how fairly people feel they are compensated, how appreciated they feel by their coworkers, how accomplished they feel in their roles, and how supported they feel by their teams and leadership. Collectively, these factors foster a healthier, more motivated workforce and contribute to long-term business success.

By embracing salary transparency, employers demonstrate their commitment to creating a healthy workplace and position themselves as forward-thinking organisations. Increasing transparency, from no transparency to partial transparency, for example, can lead to better employee engagement, attention from high-tier talent, reduced turnover, and ultimately, stronger overall company performance.

In a world where top talent can pick and choose, being vague about pay is no longer a competitive advantage. It’s a liability. Transparency isn’t just about fairness – it’s about building the kind of workplace where people want to stay. And that’s worth more than any short-term negotiating edge.

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