British Employers Lead in Job Salary Transparency

By David Milliken

LONDON (Reuters) – British employers are the most likely among major European countries to include salary details in job advertisements, with 71% doing so compared to just 16% in Germany, according to research from recruitment platform Indeed published on Tuesday.

The percentage of British job listings providing salary information has steadily increased from 48% in 2019, mirroring a rise across Europe, though the gaps between countries remain largely unchanged.

> “The culture surrounding pay secrecy and negotiation is a larger factor in some countries than others,” said Indeed economist Jack Kennedy.

Next year, a new law is set to take effect in the European Union requiring employers to disclose salary details in job advertisements or prior to initial interviews. This move aims to address pay disparities often linked to gender or ethnicity.

Although Britain does not have a similar law on pay transparency, courts ruled last year that the clothing chain Next discriminated by paying predominantly female retail staff less than their predominantly male warehouse counterparts for work deemed of equal value. Next is currently appealing this ruling.

The lack of pay details in job ads across Europe can be attributed to certain sectors in countries like Germany, Italy, and the Netherlands where pay is determined by publicly accessible collective bargaining agreements. Even when considering these agreements, the percentage of roles with available pay data in Germany only rises to 24%.

In Britain, pay transparency in job advertisements varies widely across sectors, according to Indeed’s data, ranging from over 90% in nursing or social care to under 35% in typically better-paid, male-dominated roles in finance, technology, and engineering. Public-sector roles and jobs near the minimum wage were more likely to provide salary details.

Other European nations also reflect a similar pattern in pay transparency. While Indeed advocates for employers to disclose pay data in job ads, some remain hesitant, particularly for higher-paid roles with less standardized duties and qualifications.

> “Some employers worry it could create discontent if it reveals significant pay variations within the existing workforce,” Kennedy added.

Indeed, a subsidiary of Japan’s Recruit Holdings, is recognized as the world’s most visited job site.