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

> UK reward governance benchmarks 2026: pay transparency, salary ranges in adverts, gender pay gap analysis, reward strategy and AI in pay decisions.

Source: https://lumihr.co.uk/resources/governance-transparency
Author: David Whitfield (https://lumihr.co.uk/about/david-whitfield)
Data: lumi reward benchmark · national · collection window 2026 H1

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*lumi benchmarks · Governance & transparency · Collection window 2026 H1 · By David Whitfield*

> **Key findings**
> - 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. ([Do UK employers publish salary ranges in job adverts?](/research/pay-transparency-equal-pay-2026))
> - 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 conduct gender pay gap analysis?](/research/pay-gap-reporting-2026))
> - 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 have a documented total reward strategy?](/research/reward-strategy-communication-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.

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](/register).

## 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).

## Related

- [All resources](/resources) — every paper, guide and template, filterable by topic.
- [How the numbers are made](/methodology) — collection, the floor of three, and how positions are read.
- [Who is in the sample](/sample) — the organisations behind every figure, by sector and by size.

## What the research says

### What percentage of UK employers have a documented total reward 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.
- 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: https://lumihr.co.uk/research/reward-strategy-communication-2026

### Do UK employers publish salary 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).
- 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: https://lumihr.co.uk/research/pay-transparency-equal-pay-2026

### What percentage of UK employers conduct gender pay gap analysis?

- 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).
- 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: https://lumihr.co.uk/research/pay-gap-reporting-2026

### What percentage of UK employers use AI in pay decisions?

- 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.
- 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: https://lumihr.co.uk/research/ai-in-reward-2026

## The public figures

- [Formal pay progression policy within bands](https://lumihr.co.uk/metrics/formal-pay-progression-policy-within-bands): 72.9% have formal pay progression policy within bands in place (n = 258)
- [Annual gender pay gap analysis](https://lumihr.co.uk/metrics/annual-gender-pay-gap-analysis): 77.5% have annual gender pay gap analysis in place; a further 5.6% have it partly in place (n = 267)
- [Pay decisions reviewed for fairness before implementation](https://lumihr.co.uk/metrics/pay-decisions-reviewed-for-fairness-before-implementation): 32.6% have pay decisions reviewed for fairness before implementation in place; a further 21.7% have it partly in place (n = 267)
- [Exceptions to standard pay rules formally documented](https://lumihr.co.uk/metrics/exceptions-to-standard-pay-rules-formally-documented): 50.2% have exceptions to standard pay rules formally documented in place; a further 49.1% have it partly in place (n = 267)
- [Pay compression and internal equity review](https://lumihr.co.uk/metrics/pay-compression-and-internal-equity-review): 40.8% have pay compression and internal equity review in place; a further 33.7% have it partly in place (n = 267)
- [Incentive outcome review by characteristic](https://lumihr.co.uk/metrics/incentive-outcome-review-by-characteristic): 45.7% have incentive outcome review by characteristic in place; a further 30.7% have it partly in place (n = 267)
- [Documented pay transparency approach or policy (in place)](https://lumihr.co.uk/metrics/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 place (n = 267)
- [Employees have access to pay ranges for their grade/role family](https://lumihr.co.uk/metrics/employees-have-access-to-pay-ranges-for-their-grade-role-family): 35.2% have employees have access to pay ranges for their grade/role family in place; a further 17.2% have it partly in place (n = 267)
- [Pay range publication on job adverts](https://lumihr.co.uk/metrics/pay-range-publication-on-job-adverts): 19.9% have pay range publication on job adverts in place; a further 33.3% have it partly in place (n = 267)
- [Pay transparency readiness assessment](https://lumihr.co.uk/metrics/pay-transparency-readiness-assessment): 17.2% have pay transparency readiness assessment in place; a further 69.3% have it partly in place (n = 267)
- [Formal pay ranges defined for all permanent roles](https://lumihr.co.uk/metrics/formal-pay-ranges-defined-for-all-permanent-roles): 53.9% have formal pay ranges defined for all permanent roles in place; a further 26.2% have it partly in place (n = 267)
- [Pay ranges linked to a job evaluation framework](https://lumihr.co.uk/metrics/pay-ranges-linked-to-a-job-evaluation-framework): 46.1% have pay ranges linked to a job evaluation framework in place; a further 18% have it partly in place (n = 267)
- [Pay range review frequency](https://lumihr.co.uk/metrics/pay-range-review-frequency): 58.4% have pay range review frequency in place; a further 31.1% have it partly in place (n = 267)
- [Progression eligibility linked to performance outcomes](https://lumihr.co.uk/metrics/progression-eligibility-linked-to-performance-outcomes): 28.2% have progression eligibility linked to performance outcomes in place; a further 23.8% have it partly in place (n = 227)
- [Salary positioning guidelines on promotion](https://lumihr.co.uk/metrics/salary-positioning-guidelines-on-promotion): 39.3% have salary positioning guidelines on promotion in place; a further 31.8% have it partly in place (n = 267)
- [Pay progression basis outside the annual review](https://lumihr.co.uk/metrics/pay-progression-basis-outside-the-annual-review): 19.9% have pay progression basis outside the annual review in place (n = 267)
- [Typical maximum pay increase for promotions](https://lumihr.co.uk/metrics/typical-maximum-pay-increase-for-promotions): 32.6% answered “6–9%” on typical maximum pay increase for promotions (n = 267)
- [Total reward statements adoption](https://lumihr.co.uk/metrics/total-reward-statements-adoption): 31.2% have total reward statements adoption in place (n = 256)
- [Ethnicity pay gap analysis cadence](https://lumihr.co.uk/metrics/ethnicity-pay-gap-analysis-cadence): 4.6% have ethnicity pay gap analysis cadence in place; a further 23.8% have it partly in place (n = 260)
- [Disability pay gap analysis cadence](https://lumihr.co.uk/metrics/disability-pay-gap-analysis-cadence): 7.3% have disability pay gap analysis cadence in place; a further 16.9% have it partly in place (n = 261)
- [Total rewards strategy (Documented)](https://lumihr.co.uk/metrics/total-rewards-strategy-documented): 22.9% have total rewards strategy (Documented) in place; a further 59.4% have it partly in place (n = 249)
- [Total rewards strategy refresh recency](https://lumihr.co.uk/metrics/total-rewards-strategy-refresh-recency): 91.7% have total rewards strategy refresh recency in place (n = 252)
- [Total rewards strategy pillars](https://lumihr.co.uk/metrics/total-rewards-strategy-pillars): 96.9% have total rewards strategy pillars in place (n = 257)
- [Reward and benefits communication plan (Annual)](https://lumihr.co.uk/metrics/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 place (n = 264)
- [Reward communications effectiveness measurement](https://lumihr.co.uk/metrics/reward-communications-effectiveness-measurement): 55.4% selected “Open/click metrics (email/digital)” for reward communications effectiveness measurement (n = 240)
- [Time-in-grade promotion expectation](https://lumihr.co.uk/metrics/time-in-grade-promotion-expectation): 58.9% have time-in-grade promotion expectation in place (n = 253)
- [Off-cycle pay increase incidence rate](https://lumihr.co.uk/metrics/off-cycle-pay-increase-incidence-rate): 32% answered “6–10%” on off-cycle pay increase incidence rate (n = 259)
- [Promotion decision governance](https://lumihr.co.uk/metrics/promotion-decision-governance): 92.2% have promotion decision governance in place; a further 7.8% have it partly in place (n = 255)
- [Promotion equity monitoring](https://lumihr.co.uk/metrics/promotion-equity-monitoring): 12.3% have promotion equity monitoring in place; a further 78.7% have it partly in place (n = 253)
- [EU Pay Transparency Directive readiness](https://lumihr.co.uk/metrics/eu-pay-transparency-directive-readiness): 33.6% answered “Not started” on EU Pay Transparency Directive readiness (n = 265)
- [Published equality action plan coverage](https://lumihr.co.uk/metrics/published-equality-action-plan-coverage): 26.4% have published equality action plan coverage in place (n = 265)
- [Equal-value role grouping readiness](https://lumihr.co.uk/metrics/equal-value-role-grouping-readiness): 36.9% answered “In progress” on equal-value role grouping readiness (n = 263)
- [Salary-history questions removed](https://lumihr.co.uk/metrics/salary-history-questions-removed): 72.3% answered “No” on salary-history questions removed (n = 264)
- [Proactive equal-pay audit frequency](https://lumihr.co.uk/metrics/proactive-equal-pay-audit-frequency): 34.8% have proactive equal-pay audit frequency in place; a further 15% have it partly in place (n = 267)
- [AI in pay decisions: governance level](https://lumihr.co.uk/metrics/ai-in-pay-decisions-governance-level): 57.5% answered “No AI use” on AI in pay decisions: governance level (n = 266)
- [Menopause action plan status](https://lumihr.co.uk/metrics/menopause-action-plan-status): 77.4% answered “No plans” on menopause action plan status (n = 266)
- [Ethnicity and disability pay gap readiness](https://lumihr.co.uk/metrics/ethnicity-and-disability-pay-gap-readiness): 58.3% have ethnicity and disability pay gap readiness in place (n = 228)
- [Umbrella and agency worker reward checks](https://lumihr.co.uk/metrics/umbrella-and-agency-worker-reward-checks): 46.1% answered “No checks” on umbrella and agency worker reward checks (n = 167)
- [Dismiss-and-rehire policy position](https://lumihr.co.uk/metrics/dismiss-and-rehire-policy-position): 37% answered “No policy” on dismiss-and-rehire policy position (n = 262)
- [Dedicated reward team size (FTE)](https://lumihr.co.uk/metrics/dedicated-reward-team-size-fte): 32.8% answered “Shared HR/reward role” on dedicated reward team size (FTE) (n = 265)
- [Final sign-off on the annual pay decision](https://lumihr.co.uk/metrics/final-sign-off-on-the-annual-pay-decision): 25.4% answered “HRD” on final sign-off on the annual pay decision (n = 264)
- [Benefits linked to defined objectives](https://lumihr.co.uk/metrics/benefits-linked-to-defined-objectives): 31.1% answered “Objectives not reviewed” on benefits linked to defined objectives (n = 267)
- [AI proficiency in base pay reviews](https://lumihr.co.uk/metrics/ai-proficiency-in-base-pay-reviews): 89.1% answered “No” on AI proficiency in base pay reviews (n = 267)
- [Right to a pay explanation](https://lumihr.co.uk/metrics/right-to-a-pay-explanation): 63.8% answered “No” on right to a pay explanation (n = 265)
- [AI use in reward benchmarking](https://lumihr.co.uk/metrics/ai-use-in-reward-benchmarking): 60.8% answered “No” on AI use in reward benchmarking (n = 265)
- [Differentiated reward for AI/digital talent](https://lumihr.co.uk/metrics/differentiated-reward-for-ai-digital-talent): 65.2% answered “No” on differentiated reward for AI/digital talent (n = 264)
- [Roles re-graded because of AI](https://lumihr.co.uk/metrics/roles-re-graded-because-of-ai): 64.5% answered “No” on roles re-graded because of AI (n = 262)
- [Disclosure of AI use in pay decisions](https://lumihr.co.uk/metrics/disclosure-of-ai-use-in-pay-decisions): 75.8% answered “No” on disclosure of AI use in pay decisions (n = 186)
- [Voluntary pay gap publication](https://lumihr.co.uk/metrics/voluntary-pay-gap-publication): 34.5% have voluntary pay gap publication in place (n = 264)
- [Socio-economic pay monitoring](https://lumihr.co.uk/metrics/socio-economic-pay-monitoring): 77% answered “No” on socio-economic pay monitoring (n = 265)
- [Pay review appeal route](https://lumihr.co.uk/metrics/pay-review-appeal-route): 65.4% answered “None” on pay review appeal route (n = 263)
- [Equality impact assessment on reward changes](https://lumihr.co.uk/metrics/equality-impact-assessment-on-reward-changes): 65.5% answered “No” on equality impact assessment on reward changes (n = 264)
- [Pay review system](https://lumihr.co.uk/metrics/pay-review-system): 63.1% answered “Spreadsheets” on pay review system (n = 263)
- [External benefits broker or adviser](https://lumihr.co.uk/metrics/external-benefits-broker-or-adviser): 43.2% answered “None” on external benefits broker or adviser (n = 264)
- [Benefits re-broke frequency](https://lumihr.co.uk/metrics/benefits-re-broke-frequency): 33.8% answered “Never” on benefits re-broke frequency (n = 266)
- [Benefits take-up measurement](https://lumihr.co.uk/metrics/benefits-take-up-measurement): 75.8% answered “No” on benefits take-up measurement (n = 265)
- [Naming outsourced-worker providers in GPG report](https://lumihr.co.uk/metrics/naming-outsourced-worker-providers-in-gpg-report): 17.5% have naming outsourced-worker providers in GPG report in place (n = 229)

## Guides and templates

- [How to calculate and report your ethnicity pay gap](https://lumihr.co.uk/guides/how-to-calculate-ethnicity-pay-gap)
- [How to prepare and publish your gender pay gap report](https://lumihr.co.uk/guides/how-to-prepare-gender-pay-gap-report)
- [How to publish salary ranges in job adverts](https://lumihr.co.uk/guides/how-to-publish-salary-ranges-job-adverts)