Thousands of Gen Z employees in the UK are probably going through job applications, disgusted by the lack of wage transparency in their current position and the transparency of potential new employers. However, that could all be about to change.
A widespread practice from across the Atlantic, over half of U.K. firms intend to provide pay ranges in their job postings.
In a survey conducted by Mercer International Inc., 48% of businesses stated they will submit pay data within the next two years, up from 17% at the moment.
In the past, employers have been reluctant to disclose salaries for fear that doing so might lead to unrest among their workers. They would then seek raises or develop a falling out with their more well-paid counterparts.
While certain states in the United States have laws requiring firms to post pay ranges on job advertising, the United Kingdom and Europe have not followed suit.
A more competitive labor market seems to drive organizations to attract top talent and retain staff.
85% of Gen Z workers were “less likely” to apply for a job if the pay range wasn’t specified in the application, according to Adobe’s Future Workforce Study from last year.
In addition, Gen Z are far more inclined than previous generations to discuss compensation with their peers. Thus, upending the long-standing custom of elder generations keeping salaries modest.
The head of Mercer’s pay equity and diversity consulting group, Lucy Brown, told Bloomberg that “it seems like a really positive thing for employers to be doing.”
“Twice as many employees who feel they are paid fairly also say they understand why they are paid what they are paid.”
The EU Pay Transparency Directive is expected to impose harsher rules on companies. As stated by the majority of poll participants from Mercer, who were driven by compliance concerns. In June 2026, the EU will propose the rule to reduce the gender pay gap. Which it blamed on confusing compensation inequalities at application.
However, there are no laws governing salary transparency in the United Kingdom.
A growing number of companies intend to implement international frameworks to harmonize rules on salary transparency throughout their offices. Compliance requirements in one area may encourage organizations to adjust their processes to boost retention.
Although studies indicate that pay transparency may actually encourage employees to perform more. Especially those who understand they are paid more than their peers, supervisors now see a divided workforce.
In the meantime, the pay increase from changing jobs has in the past encouraged workers to look for new chances. Even though the pay rise for changing occupations has diminished, the pay gap motivates workers to switch.
Employees who stayed put received an average 5.6% raise. While those who departed received an average 16.4% increase, according to a Mercer survey from the previous year.
HR experts consider it an issue of justice when employees choose to leave for better compensation. They anticipate that perceptions will be shifted in favor of greater salary transparency.
