Pay equity and transparency: Why job evaluation needs to be part of the conversation

Pay transparency is one of those subjects that can make organisations feel a little uncomfortable. And perhaps that's not a bad thing.

Most employers would say they want to pay people fairly. Few would argue against the principle of equal pay for work of equal value. But ask how confident they are that their own pay arrangements are fair and consistent, and the answers may be rather less certain.

It's easy to see why. Organisations change, people come and go, businesses merge, new roles are created and salaries are negotiated in different market conditions. Over time, what might once have seemed like perfectly reasonable pay decisions can leave behind a rather complicated picture.

The EU Pay Transparency Directive, and the government’s recent consultation on equal pay and pay discrimination, is bringing some of these issues into the open. Our initial analysis of our autumn 2026 UK Reward Management Survey suggests that it is already having a significant impact on organisations, prompting many to look again at how they determine, manage and communicate pay.

For many HR professionals, this is an opportunity that should be embraced. Yes, there may be new legal obligations to consider. But surely the bigger question is whether employers are doing enough to make sure people are paid fairly in the first place?

And that brings us to job evaluation. You can't just publish your pay scales and hope for the best.

Survey findings show that organisations are at very different stages when it comes to pay transparency. 29% of respondents say they are completely transparent, publishing pay scales internally. A further 26% share pay scales with line managers and above. At the other end of the scale, 27% aren't currently transparent but are considering improvements, while 17% have no plans to introduce greater transparency.

That last figure is quite striking. Some organisations may be reluctant to open up the subject because they aren't entirely sure what they might uncover. Once employees can see how pay works, questions will inevitably follow.

Why is one role paid more than another? Why are two people doing similar jobs on different salaries? What determines whether someone progresses to the next pay grade? These aren't unreasonable questions.

Publishing salary ranges without a clear rationale behind them risks creating more problems than it solves. Transparency is only valuable when people can understand that there’s a sturdy framework beneath the figures.

Before sharing with employees how pay is determined, HR needs to be sure that the organisation actually have a consistent and robust approach. This is where job evaluation comes in.

Job evaluation isn't always the most exciting subject on the HR agenda. It can involve quite a lot of detail and some difficult conversations, but its importance shouldn't be underestimated.

At its core, job evaluation is about understanding the relative value of different jobs. It’s a consistent way of looking at factors such as knowledge, skills, responsibility, decision-making, complexity and the demands placed on the jobholder.

It takes some of the subjectivity out of pay decisions. Without it, organisations can end up valuing jobs according to their history, the individual doing them, the negotiating skills of the person recruited or the budget available to a particular department.

We've all seen examples of this. A salary agreed to secure a hard-to-find candidate becomes the benchmark for future recruitment. A role grows considerably in responsibility but its grade never changes. Two departments use different approaches to evaluating what are essentially comparable jobs. Over time, inconsistencies emerge that are difficult to explain.

Our survey findings tell an interesting story. Analysis suggests that many organisations recognise the need to put more structure around pay. When asked which measures they had implemented, or would consider implementing, to improve transparency:

• 78% identified developing pay structures or salary scales.
• 69% identified conducting and publishing gender pay gap reports.
• 69% highlighted formal job grading.
• 48% identified regular pay audits.
• 48% said they would place roles into a hierarchy.
• 44% would provide employees with information about how their pay is determined.

The appetite for developing pay structures and formal grading is encouraging. It suggests employers understand that they need something more substantial than simply publishing salary information.

But only 22% identified regular communication of pay equity goals and progress. Even the best-designed reward system may struggle to land if employees fail to understand the changes being made and why.