Rachel Collar.
NEW PAY transparency directives from the European Union are starting to influence employment practices in the UK. Pay transparency is no longer a progressive ideal…it is fast becoming a business necessity.
Employee expectations continue to evolve and, says an HR specialist, businesses must urgently rethink how they approach pay.
“Transparency is not just about publishing salary bands,” said Rachel Collar, founder of Towcester-based consultancy Haus of HR. “It is about creating a fair, open and accountable culture around reward. People want to know they are being treated equitably and they are no longer afraid to ask.”
The UK is not legally bound to follow EU rules but there are ripple effects. Many UK companies, especially those with global workforces or progressive values, are taking voluntary steps toward transparency to stay competitive in a tight, candidate-driven market.
Jobseekers are driving this change, Rachel added. Candidates now expect to see salary information clearly advertised in job postings nd many will scroll past roles that do not include it. According to recent research, listings that include pay details attract more applicants and build greater trust from the outset. Transparency in recruitment is becoming a deciding factor for top talent. Rachel fears that ignoring this trend could do more damage than employers realise.
“When pay feels mysterious or unfair, it fuels distrust. We have seen it time and again – employees start comparing notes, engagement drops, grievances rise and retention becomes a real issue. Even your brand reputation can take a hit.”
She has compiled a checklist of actions for employers to keep them ahead of the curve.
Conduct a pay audit
Start by reviewing your internal pay data across gender, ethnicity and roles to identify hidden gaps..
Define clear pay bands and criteria
Structured salary frameworks help remove ambiguity. Be clear on how pay is set, how progression happens and what the benchmarks are for different roles.
Train your managers
Equip them with the confidence and language to explain pay decisions clearly and consistently.
Communicate with clarity
“People do not need to know everyone’s exact salary but they do need to understand the ‘how’ and ‘why’ behind pay decisions,” said Rachel.
“When businesses lead with fairness, they attract top talent, retain their best people and build a culture where everyone knows their worth.”
For support with pay reviews, benchmarking or reward strategies, contact Haus of HR at 01604 261380 or email .
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