Small employers may soon have to rethink how they advertise vacancies. Government proposals would require salary information to be given to candidates in job adverts, or in writing before interview where no advert is published.
The change is not yet in force. The government is consulting on the detail until October, including whether employers should state an exact salary, a pay range or a benchmark rate. It is also considering whether other parts of remuneration, such as bonuses, should be disclosed.
For SMEs, the sensible response is preparation rather than panic. Businesses that build a consistent approach to setting and explaining pay now should find it easier to comply when the final rules are known.
What is being proposed?
The proposals form part of a wider government consultation on equal pay and pay discrimination. Ministers want employers in England, Scotland and Wales to make pay and potentially other job conditions clearer at the start of recruitment.
According to the consultation coverage, employers that publish a vacancy would need to include salary information in the advert. If a business recruits informally or approaches candidates directly, it would instead have to provide the information in writing before an interview.
Important questions remain open. A broad salary band might technically provide information while still being of limited use to applicants, so the consultation is examining what form disclosure should take. The eventual legislation will set the precise duties and timing.
Why this matters to smaller employers
Many small businesses recruit only occasionally and do not have dedicated HR teams or formal salary structures. Pay may have developed role by role as the company grew. A disclosure rule could expose inconsistencies that were previously handled privately during recruitment.
That creates an administrative task, but it may also improve hiring. Clear pay information can discourage applications from people whose expectations are far above the available budget, while giving suitable candidates more confidence that applying is worthwhile. That could mean fewer wasted interviews for an owner-manager already short of time.
Transparency may also make existing employees compare their salary with the rate offered to a new recruit. Businesses should be ready to explain genuine differences based on responsibilities, experience, location, working pattern or scarce skills. A vague answer is more likely to damage trust than a carefully documented decision.
Five practical checks to make now
- Review current job templates. Identify every place vacancies are advertised, including recruitment sites, social media, local groups and agency listings. Make sure there is one owner for approving pay information.
- Map comparable roles. List people doing similar work and note their basic pay, hours, main responsibilities and relevant experience. Investigate unexplained gaps rather than assuming they are justified.
- Define credible ranges. If your business uses salary bands, make them narrow enough to be meaningful and record what determines a candidate’s position within the range.
- Separate salary from the wider package. Document bonuses, commission, pension contributions and other benefits clearly. The consultation may affect how some of these are presented.
- Keep a decision trail. Record why a role has been priced at a particular level and why the successful candidate received a particular offer. Consistent evidence is useful when managers change or questions arise later.
Avoid treating this as settled law
The direction of travel is clear, but the final requirements are not. SMEs should avoid making claims about a fixed implementation date or a compulsory format until legislation and guidance are published.
Businesses can still improve recruitment adverts voluntarily. Stating a realistic range, working hours, location and key benefits gives candidates a better basis for deciding whether the role fits. Employers should also check that managers and external recruiters use the same approved information.
For firms reviewing recruitment plans alongside a cautious economy, our earlier guide to what SMEs should watch when growth is weak offers additional context on hiring confidence and cost control.
What happens next?
The consultation is due to close in October 2026, after which the government will decide the detailed approach and bring forward legislation. Employer groups are being asked for views, so businesses with practical concerns about ranges, bonuses or informal recruitment should look out for opportunities to contribute.
For now, the best preparation is a simple pay review, clearer recruitment records and an agreed process for approving vacancies. Those steps are useful even if the final rules change, and they reduce the chance that a rushed advert creates confusion for candidates or existing staff.
