More than three-quarters (76 percent) of UK employers are planning to share individual pay ranges with employees in the future, and 70 percent also intend to provide pay range details to external candidates without being legally required to do so.
These were the key findings of WTW’s 2025 Pay Transparency Survey, which suggests that the EU Pay Transparency Directive is sparking a cultural shift in how UK employers approach pay.
Regulatory pressures are a major driver (59 percent), but growing employee expectations are another motivation (46 percent), as well as evolving values and culture in organisations (41 percent). However, UK employers remain slightly behind the global curve when it comes to pay transparency.
Nearly three-quarters (73 percent) of employers worry that sharing pay ranges will prompt more questions from staff and managers, while 55 percent anticipate an increase in pay negotiations. Concerns over line managers’ ability to explain pay structures and employees’ potential reactions also play a role in delaying more openness about pay. But, UK firms are taking steps to address this. WTW found that many UK employers are prioritising education for senior leaders, managers, and board members, in fact more so than their global counterparts.
“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,” said Eva Jesmiatka, Europe lead on pay and career equity at WTW. “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.”
Jesmiatka added that robust job and reward structures, and objective HR processes are vital to ensure equal pay as transparency grows.
“It will be important for companies to look at their future ambition for pay transparency and define how transparent they aspire to be,” she said.
While 62 percent of UK companies already use metrics to measure the impact of pay transparency, such as changes in gender pay gaps and employee engagement, few are leveraging AI or even conventional technology to help analyse the data. Only 13 percent plan to use AI for pay transparency programmes, with most citing concerns about data privacy, compliance issues, and challenges integrating AI with their HR systems.
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.”
