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Published on: Press & Media

UK Firms Falling Behind Europe on Pay Transparency – What HR Must Do Now

Featured in People Management

A recent People Management article revealed that UK organisations are falling behind their European counterparts when it comes to pay transparency readiness. While EU employers are accelerating their preparations ahead of the 2026 deadline, many UK firms remain on the back foot and the gap is widening.

As featured in the piece, Executive Coach and HR Reward Specialist Gemma Bullivant explains why this lag is happening, what’s really driving the hesitation, and what HR leaders must prioritise now.

“Pay transparency isn’t about publishing salaries, it’s about having the architecture to back them up.”

Gemma’s perspective

“It’s no surprise that UK organisations are lagging behind their European counterparts on pay transparency. Without a legal imperative, many businesses continue to kick the can down the road. But as the research suggests, the ripple effect from European legislation and rising employee expectations is already being felt in the UK.

One of the biggest challenges is that many employers lack the underlying reward architecture needed to support pay transparency.

Pay systems have often evolved organically over time and become increasingly complex. This makes it difficult to explain pay decisions clearly, let alone publish salary data with confidence.

There’s also a fundamental misunderstanding around what pay transparency actually means. It’s not about sharing individual pay, it’s about having clear principles and structures in place to explain how pay is set.

HR leaders should focus on building internal clarity before anything else. That means reviewing and streamlining reward frameworks, and ensuring managers have the confidence and capability to explain pay decisions well. Piloting salary bands for certain roles can help build momentum.

Leaders need to shift the mindset from fear of backlash to the opportunity transparency brings: better trust, fairness and talent retention.”

Gemma’s Advice to HR Teams is to Build Clarity Before Transparency

For HR leaders navigating the growing pressure around transparency, even without UK legislation, Gemma’s guidance centres on one thing: get your foundations right.

Here are her key takeaways:

1. Strengthen your reward architecture

Before publishing anything, make sure your job structures, pay principles and salary ranges are consistent, gender-neutral and defendable.

2. Create clarity for managers

Managers often fear pay conversations because they lack the tools and language. Equip them early.

3. Pilot pay transparency in low-risk areas

Testing salary bands for selected roles builds confidence and exposes gaps in your structure.

4. Shift the narrative from fear to opportunity

Transparency isn’t a threat,  it’s a route to better trust, stronger culture and improved retention.

5. Don’t wait for legislation

Even without a UK mandate, employee expectations and market pressures are accelerating. Early movers will gain advantage.

If you’re preparing for the EU Pay Transparency Directive and want a clear, practical starting point, you can download my free guide here.