Burnham plans mandatory salary details in job adverts

The proposed requirement aims to help applicants assess jobs and compare pay, but ministers have yet to set out which employers it will cover or how the rules will be enforced.

Andy Burnham’s government plans to require employers to state pay in job advertisements, arguing that applicants should be able to judge a role before committing time to an application. The proposal is also intended to make it easier for workers to compare their own pay with that of colleagues and to identify possible disparities.

Burnham said the change mattered to people starting their careers as well as parents supporting families. He said: “Whether you’re a young person starting out or a parent trying to support your family, you should know what a job pays before spending your time and effort applying for it. That’s why we will make it a legal requirement for all employers to say what you pay.” The government has yet to specify which employers will be covered, what pay details they must provide or how compliance will be enforced.

The policy responds to a widespread lack of clear pay information in recruitment. Research from the Chartered Institute of Personnel and Development found that 41% of surveyed employers always include salary ranges in external job adverts. The government’s announcement also cited a figure of 18% for employers that always publish specific salaries. The CIPD cautions that its measures cover different forms of disclosure, and recommends that employers using pay scales explain where a successful candidate is likely to start and how their salary could progress.

Supporters say clearer information could help address unequal pay by giving candidates a better basis for assessing offers. The government argues that secrecy can leave applicants negotiating without knowing the expected rate, potentially reinforcing unjustified differences. International analysis by the OECD likewise identifies salary disclosure as one way to improve candidates’ information, while warning that its impact depends on how rules are designed; an unusually broad salary range, for example, may offer little practical guidance.

The proposal forms part of a wider review of equal-pay protections. A government consultation considered requiring employers to disclose pay in adverts, or to provide the information before interview when a vacancy was not advertised. It also sought views on possible future protections for disabled people, ethnic minorities and outsourced workers. Ministers have not yet published final decisions on those wider issues, and the precise requirements for recruitment disclosure remain to be settled.

Burnham has presented the measure as one of a series of practical changes, alongside a broader programme of reform that he says will address the legacy of four decades of neoliberalism. The government has also linked its employment agenda to opportunities for young people, with further measures expected following a review by former minister Alan Milburn. In its announcement, it said employers should disclose pay voluntarily while legislation is prepared.

Paul Nowak, general secretary of the Trades Union Congress, said: “Anyone who’s searched for a job knows how frustrating it is to read ‘competitive salary’.” Evidence from a separate UK policy offers some support for the wider case for transparency, though it does not test the proposed advertising rule directly: research on mandatory gender-equality reporting by large firms found a reduction in the gender pay gap and an increase in employers’ likelihood of including wages in vacancy adverts. The findings relate to a different disclosure policy, so they do not establish what effect the new requirement would have.

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Source: Noah Wire Services · Original