Salaries on job ads: Why not every good idea should be a law

Mandating salary transparency in job adverts is seen by some as an additional burden for employers, and not the solution to fair pay that it may appear to be, according to Jay Bhayani, executive director for legal at UK manufacturing trade body Make UK. The Prime Minister has suggested that all job adverts should include salary information, but Bhayani is unconvinced.

This proposal comes after Andy Burnham called for businesses to disclose pay details ahead of new legislation making it compulsory. The government believes increased pay transparency will help jobseekers, particularly young people, make informed decisions and reduce the risk of pay discrimination. While these are worthwhile goals, encouraging good practice is not the same as making it a legal requirement.

Compulsory salary disclosure could add to the compliance burden already faced by employers and overlook the complexities of recruitment. For example, Bhayani has found that overly prescriptive adverts can deter strong candidates who might fit the role better than originally thought. An applicant for an HR consultancy team he led, who was earning more than the company's budget allowed, would not have been deterred by a salary range.

Instead, she was open to lower pay for better flexibility, interesting work, less travel, and fewer overnight stays. Such conversations would not have happened if the advertised salary had put her off. The government should also consider the variety of remuneration elements, such as overtime, bonuses, pension contributions, and benefits that can form part of an employee's package.

These factors can significantly impact the overall compensation package, and publishing starting salaries alone may not capture this complexity. Additionally, salary information could expose differences between new recruits and existing employees, leading to difficult conversations about pay and retention. These differences are often driven by market forces, such as the high demand for skilled workers in manufacturing.

In this sector, wages are already higher than the national average, and employers need to offer competitive salaries to attract talent. With over 100 roles covered by Make UK's annual pay research, the variety of manufacturing jobs further complicates setting salaries. Location and business circumstances also play a role in determining pay.

Therefore, it is essential to consider these factors when discussing salary transparency. The government must balance encouraging good practice with the need for a stable and proportionate regulatory environment for businesses. Employers are already facing significant employment law reforms and the challenges of a turbulent operating environment.

Mandating salary information in every job advert may not be the most effective way to address pay discrimination. Instead, employers should be encouraged to be transparent voluntarily, as many already do. While pay discrimination is a serious issue, mandating salary disclosure in every job advert may not be the best solution.