With debate continuing about UK Workers’ Rights, new research, the leading provider of HR and payroll solutions, has revealed how the UK is surging ahead of European counterparts on clear comms on compensation despite EU countries working towards the EU Pay Transparency Directive by June 2026.

With transparency on compensation linked to reducing pay gaps, boosting employee morale and retention and enhancing employer brand and recruitment, the research found;

• Under half of UK employees (46.6%) said their organisation was sufficiently transparent when it comes to clear communications on compensation. Including on reward policies, packages, pay gaps or pay increases.
• Compared to just one in three (30.3%) of their European counterparts
• Nearly two thirds of UK businesses (61%) say they’re invested in greater pay transparency. Compared to just over half of European businesses (52.3%)

There is work to do on inequality:  

• More than a third of European employers (35%) acknowledged that there is still a gender pay gap. With employers in countries such as Norway (50%), Ireland (44%), Sweden (43%) and the UK (41.3%) being particularly ready to acknowledge there is a problem
• Nearly half of UK employees (47.4%) believed their organisation is trying to close gender pay gaps, compared to just under four in ten in Europe (39.8%)
• Though fewer still in Europe (average 29%) see broader efforts to tackle inequality in general.  Compared to the UK which achieves the highest score of countries surveyed for levelling the playing field (41%)

These findings are based on international research conducted by leading European HR service provider SD Worx among 5,625 HR managers and 16,000 employees in sixteen European countries.

“From June next year, companies within the European Union will have to be transparent about their wages,” says Laura Miller UK People Country Lead at SD Worx. “Reporting must be done both internally and externally and employers must also make clear the criteria they use for salary and career development. Yet, in an international labour market where the war for talent crosses borders and there are clear links between employee morale and remuneration packages, perhaps others can learn from the UK. The research shows that our market is leading the way, perhaps due to our history of equal pay legislation, employee engagement and candidates and employees being able to access information on salary banding from job ads, forum reviews and LinkedIn. However of course there’s still work to be done.”

Despite efforts being made and most employers across Europe (64%) believing they pay their employees fairly, in contrast, half of employees (49%) believe they should earn more for the work they do.

This feeling is particularly strong in Slovenia (60%), Serbia (59%) and Croatia (58%) compared to the UK (42.8%).

Furthermore, only four in ten (38%) European employees believe that their pay is competitive and in line with what is customary in their sector. This compares to just under half (48.3%) of UK employees.

Laura Miller continued, ‘Times are uncertain for many businesses, so it is encouraging that British workers feel their packages are still competitive. Transparency about the full remuneration package, including benefits, is important in the perception of a “fair” wage. A total reward statement can help with this. Companies would also do well to have their entire wage policy reviewed (pay equity audit) as the deadline for the directive approaches in Europe and scrutiny continues in the UK”.