Salary transparency: how ready are employers?

In May 2023, the European Parliament approved the ‘Pay Transparency Directive’, which mandates salary transparency by 2026. Employers will soon have to include salary details in job advertisements, with the aim of equal pay for equal work and closing the gender pay gap. Yet recent research by global talent solutions specialist Robert Walters shows that many organisations are not yet ready for this change. 

How transparent are organisations today? 

Salary transparency remains limited in most organisations: 

• Only 3% of surveyed organisations are fully transparent about salaries  

• 13% share salary ranges, but no specific amounts  

• 45% do not share any salary information

• 18% are considering implementing a salary transparency policy

This highlights the challenge many employers face in aligning with upcoming regulations and meeting evolving employee expectations.

What do employees think about salary transparency? 

According to Robert Walters' salary survey, salary transparency significantly influences employees’ perceptions of their careers and workplaces:  

• 30% believe transparency should become the norm  

• 42% find it helpful for career decisions  

• 13% are neutral, seeing no direct impact on job satisfaction  

• 15% prefer salary privacy

Additional survey findings include: 

• 9% are satisfied with their current salary package  

• 43% find their salary acceptable, but unremarkable  

• 21% are dissatisfied with their earnings

• 57% received a salary increase in 2024, while 72% hope for one in 2025  

Why is salary still a taboo topic? 

Only one in four employees discuss salaries with colleagues. The subject remains sensitive because of potential tensions, conflicts and uncomfortable situations. However, when handled thoughtfully – salary discussions can lead to better negotiation outcomes and improved understanding of market trends. 

Benefits of salary transparency for employers  

While the focus of salary transparency often lies on employee advantages, organisations also stand to gain significantly: 

1. Improved benchmarking:  
   “Clearly communicating salaries enables organisations to respond quickly to market trends and address wage gaps in their sector,” explains Özlem Simsek, Managing Director at Robert Walters. “Effective benchmarking also supports compliance with European regulations and fosters internal trust.”

2. Enhanced talent attraction and strategic positioning:  
   Transparency makes employers more appealing to top talent. “Organisations that proactively embrace transparency enhance their employer branding and are seen as modern, forward-thinking workplaces,” Özlem adds.

3. Stronger organisational culture:  
   Transparent salary policies boost trust and collaboration. “Employees feel a greater sense of equality, which strengthens motivation and engagement across teams.”

4. Higher retention and cost savings:  
   “Fairly compensated employees are more likely to stay, reducing turnover and saving on recruitment and onboarding costs,” Özlem concludes.

    

More information

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