LONDON, UK – 1 MAY, 2008 – In a bid to eradicate pay inequality, UK employees are prepared to challenge one of the biggest workplace taboos and reveal their own salaries.

New research by global recruitment and talent management consultancy, Hudson, reveals that 60% of workers would be comfortable revealing what they get paid to colleagues in order to achieve pay parity. A similar number (62%) believe that senior managers should have to disclose what they get paid to the rest of the workforce. The findings represent a warning to employers that pay and pay reviews need to be fair and transparent throughout the organisation, in order to avoid the risk of losing talented employees.

Two thirds of professional employees (63%) believe that more transparency about pay would reduce the gender pay gap, helping avoid a situation that still sees men paid, on average, 17.2% more than women in the same position. Hudson conducted the study among 1,000 UK workers in professional employment to assess how employees’ attitudes to the traditionally sensitive issue of pay might have changed in light of recent damning reports into the gender pay gap from Government and trade unions.

Andy Rogerson, chief executive, Hudson UK, said: “British employees are ready to break one of the biggest taboos in the workplace – revealing salaries – in order to ensure true equality of pay. The gender pay gap persists, and businesses that neglect to address it are risking alienating half their workforce. Those that promote equality and back this up with visible action will prosper – particularly in an economic climate where retention of the right talent will become more business-critical.

“A policy of salary disclosure at all levels is not likely to be appropriate at many organisations, clearly. But the underlying principle, of ensuring fairness and transparency in the process of setting and reviewing salaries, is a good one.

“However, being open about earnings can be motivational. At successful listed companies, where board executives have to disclose their salaries, such openness can fuel the aspirations – and the performance level – of those employees with an eye on a top job. It can also help a company’s retention figures, by contributing to a culture of fairness and honesty.”

Treating employees fairly:

The key word is openness. The details of your salary policy should be available to all employees.

Conduct a regular review of your policy, testing whether it is working.

Ensure a structure is put in place that permits workers who feel they are comparatively underpaid to discuss their concerns with a senior member of management in an off-the-record, constructive session. Feedback should be discussed and acted upon at management level within a reasonable time period.

Ensure line managers engage regularly with employees to gauge satisfaction levels so that any problem areas can be acted upon.

Getting a fair day’s pay:

Ask colleagues. Given the findings of this report, you may be surprised how many of your peers are prepared to share information that has traditionally been a sensitive subject.

Ask your line manager. They should be able – and happy – to tell you the company’s policy on pay, and possibly even what the salary bandings are for a particular position and how they work. If they don’t know, they should be able to find out for you within a reasonable time frame.

Look at salary surveys for your industry, often published annually in trade publications and online, and job adverts for similar positions. If, having compared these, you feel you are being underpaid, take this evidence to your line manager and demonstrate how you are operating at this level.

The research also identified some regional variations:

Scottish workers feel strongest that pay transparency would combat the gender pay gap (69% compared to 63% national average)

Scottish workers also feel most strongly that managers should have to disclose their earnings (67% compared to 62% national average)

West Midland employees are the most comfortable with the idea of disclosing their earnings (68% compared to 60% national average)

Londoners are the least comfortable with the idea of disclosing their earnings (50%) Women in the South East are far less comfortable with the idea of disclosing their earnings (51%) than men (65%) Women in the North West are far less comfortable with the idea of disclosing their earnings (56%) than men (70%) Women in the North East are far more likely to believe that pay transparency would combat the gender pay gap (69%) than men (54%)

Women in the South East are far more likely to believe that pay transparency would combat the gender pay gap (64%) than men (55%)