Pay Transparency: Britain and the EU on Divergent Routes As a key deadline for EU firms approaches, UK firms take a different approach toward pay disclosures. Which will work better?

By SIMON CONSTABLE

Businesses have long been less than transparent about who gets paid what. But back in 2018, Britain broke the mold and led the way on mandatory gender-pay-gap reporting. It was a landmark step toward pay equity. And at the time, the UK was the largest economy to have embraced such rules. 

But the world of pay is changing fast. The UK is reconsidering its existing pay-transparency rules, which are largely voluntary. And the neighboring European Union is attempting to leapfrog the UK with tighter rules.

Meanwhile, many states and cities in the US have put laws on the books requiring job postings to list pay ranges. “The EU saw what Britain did and copied it, then went further,” says Ben Frost, Korn Ferry’s senior client partner in EMEA.

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