Pay transparency is a win-win for the labour market, says REC

Candidate comparing abstract salary ranges in job advertisements

The Recruitment and Employment Confederation says meaningful salary ranges can improve recruitment, but calls for any new pay-transparency requirements to be practical for employers and recruiters.

Responding to the Prime Minister’s view that businesses should publish salaries in job adverts, the Recruitment and Employment Confederation (REC) has described pay transparency as a “win-win” for the labour market.

Maxine Bligh, Interim Chief Executive at the REC, said the approach could improve recruitment, provided salary information is useful in practice.

“Pay transparency is a win-win for the labour market.”
Maxine Bligh, Interim Chief Executive at the Recruitment and Employment Confederation

“It leads to better recruitment because candidates know what is on offer and employers attract applicants whose expectations match the role,” Bligh said.

However, she stressed that salary ranges should be realistic and meaningful, with clear information about bonuses and commission. Candidates should be able to use that information to compare opportunities and make informed decisions.

Transparency needs to work in practice

Bligh added that reducing the number of young people who are not in education, employment or training (NEET) will ultimately require wider action on careers advice, skills and employability support.

“Recruiters are experts in how pay information is communicated in the labour market and look forward to working with government to ensure any new requirements deliver for jobseekers without creating unnecessary complexity or duplication for employers and recruitment businesses,” she said.

About the REC

The Recruitment and Employment Confederation is the voice of the recruitment industry. It supports standards and recruitment businesses, and champions an industry fundamental to the strength of the UK economy.

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