More than half of all job postings lack salary transparency



According to a recent study, over half of all job ads on LinkedIn UK do not provide salary information. This highlights a major issue with salary transparency in various sectors.

People Managing People conducted the research and analysed more than 4,000 job ads from 24 industries. Media and entertainment was the sector with the lowest transparency, as 84 percent job listings did not include salary information. Finance (73%) and healthcare (78%) are also industries that have a large number of job listings without salary details.

Salary transparency in the UK is thought to contribute to gender and race pay gaps. Women earn 7.7% less on average than their male counterparts, and minority ethnic workers are paid 25% less than white workers.


Media and Entertainment Leads the Omission

Media and entertainment was the sector with the highest level of secrecy, as 84 percent job ads did not disclose salaries. David Rice, a People Managing People HR expert, believes that this practice persists due to the fact that many companies want to keep a competitive edge, and don’t want to reveal the lower wages common to the industry.

Rice said that many people struggle to pay their bills. This is especially true in the media and entertainment industry, where junior positions often begin at PS12,000 per year, which is 28 percent less than the average national salary of PS42210.

Other industries with notable salary omissions include technology (74%), marketing (70%), and insurance (73%).


The highest salary transparency is found in education and telecoms

The industries with the least transparency were education (12%), telecommunications (20%), and less job postings that omitted salary information. Manufacturing (32%) as well as customer service (33%%) performed better than other sectors.

The sectors with the highest transparency of salaries were:


Sector

% Job Postings without Salary Information
Education 12%
Telecommunications 20%
Manufacturers 32%
Customer Service 33%
The Government 38%


Differences between regions in salary transparency

Salary transparency also differed significantly across regions. The study found that Greater London had the lowest percentage of job listings with salary information, 72%. Edinburgh (54%), Bristol (52%) and Manchester (52%) were closely followed.


Region

% Job Postings without Salary Information
Greater London 72%
Scotland 45%
South East 45%
Yorkshire & Humber 43%


Impact of Racial and Gender Pay Gaps

Experts warn of the impact of lackluster salary transparency on existing pay disparities. Women in the UK earn 7.7% more than men. Minority ethnic groups also face a greater pay gap of 25% compared to white workers.

David Rice commented about the implications of this: “Businesses historically have underpaid women and minority workers compared to white male employees.” By hiding salaries, organizations can continue to have these disparities.

Rice explained that transparency in salary could be beneficial to both employers and job-seekers. When salaries are revealed upfront, the hiring process is streamlined and candidates’ expectations are realistic, leading to happier, more productive employees.

The study is a call to greater transparency in postings of jobs, which may help reduce wage gaps and foster trust among employers and employees.

Visit People Managing people for more information and to download the complete report.

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