London, 24th November 2025; Cezanne, one of the fastest growing providers of HR and Payroll software for UK and global businesses, today announces new findings that show whilst pay transparency is rapidly becoming a defining issue in today’s workplace, nearly half (45%) of HR professionals admit their organisation is behind when it comes to pay transparency, while only 18% say they are ahead of the curve.
The findings come as Europe accelerates towards mandatory pay disclosure under the EU Pay Transparency Directive, with several countries already leading the way – highlighting how quickly the shift towards open pay is becoming the new norm.
Cezanne’s research – produced in collaboration with the HR Ninjas community – shows that there is a growing gap between what UK employees expect and what organisations are currently delivering. In addition, nine in ten (87%) HR professionals say staff now expect clear visibility into pay structures – with transparency increasingly seen as a marker of fairness and trust, rather than a “nice-to-have”.
Peer Pressure, Not Policy
Despite these rapidly changing employee expectations, only 35% of organisations currently publish salary bands for all roles and the only real driver of change is not new legislation, but market competition (49%), followed by employee pressure (27%).
Pay progress is being hampered by cultural and confidence-related barriers more than data or technology. Nearly a quarter (23%) of HR professionals cite fear of employee backlash as the biggest obstacle to better pay transparency and 31% say they are not confident explaining pay decisions to employees, with 57% fearing this miscommunication could cause staff resentment.
Simon Noble, CEO of Cezanne, comments, “Labour’s proposed pay transparency reforms could transform the UK employment landscape, but our research shows many employers are still playing catch-up. With 87% of HR professionals saying employees now expect open pay structures – and nearly half admitting their organisation is behind – the pressure to act is clear.
“The challenge isn’t a lack of data or technology; it’s cultural and operational. Employers are grappling with complex pay structures, rising salary expectations and, in some cases, a fear of employee backlash.
“To make transparency work, businesses need a phased, supported approach built on strong leadership and confident communication. By embedding trust, fairness and consistency into their pay frameworks, organisations can turn transparency from a compliance risk into a genuine competitive advantage.”
Other key findings include:
- Only 6%say employee expectations around pay have stayed the same in the past two years, with 55% saying expectations have “significantly increased”.
- 43%of HR respondents believe employees care most about fairness across peers – far outweighing competitive pay or progression.
- 26%cite leadership resistance as a barrier to change, on par with the complexity of pay structures.
The Cost of Staying Silent on Pay
Pay transparency is no longer just an HR concern; it’s a business-critical issue. As new regulations edge closer and competition for talent intensifies, organisations that remain opaque risk losing skilled workers, investor confidence and brand credibility.
The financial implications are significant. Replacing a single employee can cost between 50% and 200% of their annual salary, meaning that poor transparency and the resulting disengagement or turnover could cost mid-sized employers hundreds of thousands of pounds each year.
The tide is clearly shifting and fast, with major UK employers and investors calling for fair pay practices and equal treatment across the board. In a market where candidates increasingly choose transparency over secrecy, companies that fail to adapt could find themselves on the back foot, both reputationally and financially.
About the research
The findings were conducted from a survey of more than 300 in-house HR professionals from the HR Ninjas community, carried out by Cezanne. The report, “Pay Transparency Uncovered: Are Employers Falling Behind?”, is available below:
