Talent Strategy: What salary transparency means for hiring

The UK Government has announced plans to make salary information compulsory in job advertising. It's a welcome move for many, but with CIPD research finding that only 41% of UK employers always advertise salary ranges, it could mean significant changes and some challenging conversations for businesses.

For candidates, knowing what's on offer from the outset should make it easier to decide which opportunities are worth pursuing. Employers could benefit too, with better-aligned expectations, fewer wasted interviews and less risk of losing a preferred candidate late in the process.

The start date and final requirements have yet to be confirmed, but some of the implications are already worth considering.

What happens when your existing employees see that salary?

Pay discrepancies are already becoming very public conversations, particularly online. Stories of employees discovering that a new colleague, or even someone reporting to them, earns more simply because they joined at a different time raise uncomfortable questions about fairness.

For growing businesses, salary transparency presents an opportunity to examine how investment in people has evolved. Have responsibilities expanded faster than salaries? Are the roles most critical to future growth valued accordingly? And does the current pay structure support the leadership, skills and experience the business will need next?

These are questions worth addressing as part of a wider talent strategy, particularly before making senior appointments that could reset expectations across the business.

What does salary transparency mean for senior and confidential appointments?

For Scottish SMEs, a senior appointment is a significant investment in the future of the business. Salary transparency places greater emphasis on understanding how that opportunity compares with what experienced leaders can command elsewhere.

Founders know what makes their business special. Prospective candidates will assess it through a different lens: the responsibilities, the remuneration, the authority to make decisions and the prospects for the business. Executive search brings an independent view of that proposition, testing assumptions against the market before approaching the people best placed to deliver the results required.

Confidential appointments introduce further considerations. Succession plans, leadership changes and strategic hires often require discretion, while the Government's proposals include providing salary information before interview where a vacancy hasn't been publicly advertised.

The real advantage is knowing how the opportunity will be received by the people you want to attract, before asking them to consider it.

Could salary transparency change how businesses invest in talent?

Salary transparency could encourage a more considered approach to workforce planning, particularly in growing Scottish businesses where hiring decisions are often made in response to immediate needs.

Before committing to another senior salary, it may be worth examining whether the business needs a permanent appointment, specialist expertise for a defined period or a different distribution of responsibilities across its leadership team.

It also creates an opportunity to look at the relationship between pay, performance and progression. Where are the roles that genuinely create value? Which capabilities will the business need as it grows? And is its investment in people directed towards those priorities?

For founders and owners, these are strategic decisions about how to build a business that can perform, compete and grow.

Let's talk about your next talent decision

At Denholm, we work closely with Scottish businesses to make informed decisions about the people, skills and leadership they need to achieve their ambitions.

Our Talent Strategy & Delivery Models expertise helps clients assess their workforce needs, shape roles and structures, and establish the most effective approach to hiring. We bring independent market intelligence to decisions about remuneration, candidate expectations and the availability of specialist talent.

Through Recruitment & Executive Search, we combine that insight with established networks and targeted research to identify and engage the right people, including those who aren't actively seeking a new role. Our Contract, Interim & Fractional solutions give businesses access to specialist expertise when a more flexible approach makes commercial sense.

For more than two decades, we've built relationships with businesses as their teams and leadership requirements have evolved. That understanding allows us to offer informed advice at every stage, from an initial hiring decision to a critical board appointment.

If you're reviewing your hiring plans in light of salary transparency, we'd welcome a conversation.

Explore our Talent Strategy & Delivery Models, Executive Search and Contract, Interim & Fractional solutions.

Or call us on 03303 359 818 or email marisa@denholmassociates.com.