lumi is in pre-launch testing. Founding places close on 31 December 2026.See both ways in

lumi benchmarks · Governance & transparency

Governance and pay transparency: how UK employers run reward in 2026

This area covers how reward is governed and what is published: pay ranges in job adverts, equal pay audits and gender pay gap analysis, the documented reward strategy and how it is communicated, pay progression policy, and the use of AI in pay decisions.

64metrics in the register
4research papers
57public figures, one page each

Key findings

Every figure on this page comes from the lumi reward benchmark, with the number of organisations answering shown beside it. The papers below give the full distributions, and the public figures link to one page per metric. The register lists 64 metrics in this area, among them pay range publication on job adverts, annual gender pay gap analysis and documented total rewards strategy; every one has a public definition in the metric register.

What the research says

4 papers

What percentage of UK employers have a documented total reward strategy?

22.9%n = 249have a documented total rewards strategy

  • 22.9% of UK employers have a documented total rewards strategy that integrates pay, benefits, wellbeing and career (n = 249). "In development" is the common answer, at 59.4%.
  • 38.5% last refreshed or formally reviewed their total rewards strategy 25–36 months ago, the common answer (n = 252). 11.9% did so within the last 12 months.
  • Base pay is the element most often named as explicitly covered by the strategy, at 47.1% (n = 257). Career development and recognition follow, at 44.4% each.

Also in the paper

  • 19.7% have a documented annual reward and benefits communication plan (n = 264). "Partially" is the common answer, at 65.5%.
  • Open and click metrics are the method most often used to measure whether reward communications work, at 55.4% (n = 240). 7.5% have no formal measurement.
  • 47.9% measure reward communications through employee survey questions and 48.8% through focus groups (n = 240).
Read the paper

Do UK employers publish salary ranges in job adverts?

46.8%n = 267do not publish pay ranges in job adverts

  • 49.8% of UK employers have no documented pay transparency approach or policy (n = 267). A documented approach is rare, at 19.9%, and 30.3% have one in development.
  • 46.8% do not publish pay ranges on job adverts (n = 267). 53.2% publish them for some or all roles (33.3% + 19.9%).
  • 47.6% do not give employees access to pay ranges for their grade or role family (n = 267). Separately, 72.6% have a formal policy describing pay progression within bands (n = 259).

Also in the paper

  • 63.5% say employees cannot request an explanation of how their individual pay was determined (n = 266).
  • 69.3% have a pay transparency readiness assessment in progress (n = 267), and 46.4% plan to expand external pay transparency over the next 12 to 24 months (n = 267).
  • 50.0% do not run proactive equal-pay audits (n = 268). 31.0% run them annually.
  • 8.3% have fully grouped roles into "work of equal value" categories (n = 264). The most common answer is "In progress", at 36.7%.
Read the paper

What percentage of UK employers conduct gender pay gap analysis?

77.5%n = 267analyse their gender pay gap at least annually

  • 77.5% of organisations conduct gender pay gap analysis at least annually (n = 267). This is the common answer; "No" is rare, at 16.9%.
  • For annual ethnicity pay gap analysis, 4.6% answer "Yes" and 24.1% "Partially" (n = 261). "No" is the common answer, at 71.3%.
  • For disability pay gap analysis, 7.3% answer "Yes" and 17.2% "Partially", while 75.6% answer "No" (n = 262).

Also in the paper

  • On readiness for ethnicity and disability pay gap reporting, 41.9% have not started and 6.6% are reporting-ready (n = 229, "Not applicable" excluded).
  • 73.7% do not publish an equality action plan (n = 266). 24.8% publish one that covers gender, and 17.7% one that covers menopause.
  • 82.6% have not started preparing to name providers of outsourced workers in their gender pay gap report (n = 230, "Not applicable" excluded).
  • 45.7% review incentive outcomes by protected characteristic (n = 267). 12.2% monitor promotion rates by protected characteristics routinely (n = 254).
Read the paper

What percentage of UK employers use AI in pay decisions?

42.4%n = 267use AI in pay decisions in some form

  • 57.7% of organisations report no AI use in pay decisions (n = 267), the common answer. 42.4% use AI tools in pay decisions in some form (19.9% + 16.5% + 6.0%).
  • 16.5% use AI in pay decisions with no formal oversight. 6.0% combine human oversight with bias auditing (n = 267).
  • 75.8% do not disclose to employees when AI has been used in decisions affecting their pay (n = 186, "Not applicable" excluded). 9.1% always disclose.

Also in the paper

  • 60.5% of reward functions do not use AI tools for benchmarking or market analysis (n = 266). 10.9% have them embedded in process.
  • 92.1% pay no premium specifically for AI skills (n = 267). 89.2% say AI proficiency does not influence base pay review outcomes for any population (n = 268).
  • 64.9% operate no differentiated reward arrangements for AI or digital talent (n = 265). 15.5% run a formal programme.
  • 64.3% have not re-graded or re-evaluated any role in the last 12 months specifically because AI changed job content (n = 263). 6.8% have done so for several roles.
Read the paper

The public figures

57 metric pages

One page per metric, each with its figure, its base and its collection window, from lumi's public UK reward metrics. The register lists 64 metrics in this area; a figure is published where enough organisations have answered.

  1. Formal pay progression policy within bands72.9% have formal pay progression policy within bands in placen = 258
  2. Annual gender pay gap analysis77.5% have annual gender pay gap analysis in place; a further 5.6% have it partly in placen = 267
  3. Pay decisions reviewed for fairness before implementation32.6% have pay decisions reviewed for fairness before implementation in place; a further 21.7% have it partly in placen = 267
  4. Exceptions to standard pay rules formally documented50.2% have exceptions to standard pay rules formally documented in place; a further 49.1% have it partly in placen = 267
  5. Pay compression and internal equity review40.8% have pay compression and internal equity review in place; a further 33.7% have it partly in placen = 267
  6. Incentive outcome review by characteristic45.7% have incentive outcome review by characteristic in place; a further 30.7% have it partly in placen = 267
  7. Documented pay transparency approach or policy (in place)19.9% have documented pay transparency approach or policy (in place) in place; a further 30.3% have it partly in placen = 267
  8. Employees have access to pay ranges for their grade/role family35.2% have employees have access to pay ranges for their grade/role family in place; a further 17.2% have it partly in placen = 267
  9. Pay range publication on job adverts19.9% have pay range publication on job adverts in place; a further 33.3% have it partly in placen = 267
  10. Pay transparency readiness assessment17.2% have pay transparency readiness assessment in place; a further 69.3% have it partly in placen = 267
  11. Formal pay ranges defined for all permanent roles53.9% have formal pay ranges defined for all permanent roles in place; a further 26.2% have it partly in placen = 267
  12. Pay ranges linked to a job evaluation framework46.1% have pay ranges linked to a job evaluation framework in place; a further 18% have it partly in placen = 267
  13. Pay range review frequency58.4% have pay range review frequency in place; a further 31.1% have it partly in placen = 267
  14. Progression eligibility linked to performance outcomes28.2% have progression eligibility linked to performance outcomes in place; a further 23.8% have it partly in placen = 227
  15. Salary positioning guidelines on promotion39.3% have salary positioning guidelines on promotion in place; a further 31.8% have it partly in placen = 267
  16. Pay progression basis outside the annual review19.9% have pay progression basis outside the annual review in placen = 267
  17. Typical maximum pay increase for promotions32.6% “6–9%”n = 267
  18. Total reward statements adoption31.2% have total reward statements adoption in placen = 256
  19. Ethnicity pay gap analysis cadence4.6% have ethnicity pay gap analysis cadence in place; a further 23.8% have it partly in placen = 260
  20. Disability pay gap analysis cadence7.3% have disability pay gap analysis cadence in place; a further 16.9% have it partly in placen = 261
  21. Total rewards strategy (Documented)22.9% have total rewards strategy (Documented) in place; a further 59.4% have it partly in placen = 249
  22. Total rewards strategy refresh recency91.7% have total rewards strategy refresh recency in placen = 252
  23. Total rewards strategy pillars96.9% have total rewards strategy pillars in placen = 257
  24. Reward and benefits communication plan (Annual)19.7% have reward and benefits communication plan (Annual) in place; a further 65.5% have it partly in placen = 264
  25. Reward communications effectiveness measurement55.4% “Open/click metrics (email/digital)”n = 240
  26. Time-in-grade promotion expectation58.9% have time-in-grade promotion expectation in placen = 253
  27. Off-cycle pay increase incidence rate32% “6–10%”n = 259
  28. Promotion decision governance92.2% have promotion decision governance in place; a further 7.8% have it partly in placen = 255
  29. Promotion equity monitoring12.3% have promotion equity monitoring in place; a further 78.7% have it partly in placen = 253
  30. EU Pay Transparency Directive readiness33.6% “Not started”n = 265
  31. Published equality action plan coverage26.4% have published equality action plan coverage in placen = 265
  32. Equal-value role grouping readiness36.9% “In progress”n = 263
  33. Salary-history questions removed72.3% “No”n = 264
  34. Proactive equal-pay audit frequency34.8% have proactive equal-pay audit frequency in place; a further 15% have it partly in placen = 267
  35. AI in pay decisions: governance level57.5% “No AI use”n = 266
  36. Menopause action plan status77.4% “No plans”n = 266
  37. Ethnicity and disability pay gap readiness58.3% have ethnicity and disability pay gap readiness in placen = 228
  38. Umbrella and agency worker reward checks46.1% “No checks”n = 167
  39. Dismiss-and-rehire policy position37% “No policy”n = 262
  40. Dedicated reward team size (FTE)32.8% “Shared HR/reward role”n = 265
  41. Final sign-off on the annual pay decision25.4% “HRD”n = 264
  42. Benefits linked to defined objectives31.1% “Objectives not reviewed”n = 267
  43. AI proficiency in base pay reviews89.1% “No”n = 267
  44. Right to a pay explanation63.8% “No”n = 265
  45. AI use in reward benchmarking60.8% “No”n = 265
  46. Differentiated reward for AI/digital talent65.2% “No”n = 264
  47. Roles re-graded because of AI64.5% “No”n = 262
  48. Disclosure of AI use in pay decisions75.8% “No”n = 186
  49. Voluntary pay gap publication34.5% have voluntary pay gap publication in placen = 264
  50. Socio-economic pay monitoring77% “No”n = 265
  51. Pay review appeal route65.4% “None”n = 263
  52. Equality impact assessment on reward changes65.5% “No”n = 264
  53. Pay review system63.1% “Spreadsheets”n = 263
  54. External benefits broker or adviser43.2% “None”n = 264
  55. Benefits re-broke frequency33.8% “Never”n = 266
  56. Benefits take-up measurement75.8% “No”n = 265
  57. Naming outsourced-worker providers in GPG report17.5% have naming outsourced-worker providers in GPG report in placen = 229

Read off lumi's public metric pages as at 2026-10-31. Members see every metric in the register, against the peer group they choose.

Guides and templates

3 items

Frequently asked questions

Do UK employers publish salary ranges in job adverts?

In the lumi reward benchmark, 49.8% of UK employers have no documented pay transparency approach or policy (n = 267). A documented approach is rare, at 19.9%, and 30.3% have one in development.

What percentage of UK employers conduct gender pay gap analysis?

In the lumi reward benchmark, 77.5% of organisations conduct gender pay gap analysis at least annually (n = 267). This is the common answer; "No" is rare, at 16.9%.

What percentage of UK employers have a documented total reward strategy?

In the lumi reward benchmark, 22.9% of UK employers have a documented total rewards strategy that integrates pay, benefits, wellbeing and career (n = 249). "In development" is the common answer, at 59.4%.

What percentage of UK employers use AI in pay decisions?

In the lumi reward benchmark, 57.7% of organisations report no AI use in pay decisions (n = 267), the common answer. 42.4% use AI tools in pay decisions in some form (19.9% + 16.5% + 6.0%).

Do UK employers have to put the salary on job adverts?

No UK law requires pay in job adverts; a government consultation that closed on 27 October 2026 proposed that all employers publish pay information in adverts or before interview, and the EU Pay Transparency Directive binds Member States, not UK employers directly. In the lumi reward benchmark, 53.2% of UK employers publish pay ranges on some or all job adverts (33.3% + 19.9%) and 46.8% publish none (n = 267); 49.8% have no documented pay transparency approach or policy (n = 267).

Who has to report the gender pay gap in the UK, and by when?

Employers in England, Scotland and Wales with 250 or more employees on the snapshot date must report six measures within 12 months: by 30 March for most public authorities, 4 April for everyone else; private and voluntary sector employers also publish a signed statement confirming the figures are accurate. Ethnicity pay gap reporting is voluntary: in March 2026 the government confirmed it will make it mandatory for employers with 250 or more employees, but no start date has been set. In the lumi reward benchmark, 77.5% of UK organisations conduct gender pay gap analysis at least annually (n = 267); on ethnicity, 4.6% do so at least annually and 24.1% partially (n = 261).

Before you decide

See where your organisation sits on governance & transparency.

Thirty minutes with David Whitfield, who built lumi, on your sector and a package like yours. No sales pitch.

Prefer email? hello@lumihr.co.uk