Pay transparency shift puts hiring practices under scrutiny

Robert Walters said 48% of job seekers now apply only for roles with upfront salary ranges.

Hong Kong employers may face growing pressure to be more transparent on pay as global hiring standards shift towards greater salary disclosure, according to Robert Walters Hong Kong.

The recruitment firm said the European Union’s Pay Transparency Directive, which is set to be transposed into law by June 2026, will require employers to disclose pay scales and explain how pay decisions are made.

Similar expectations are also emerging in markets such as the US, UK, Canada, Brazil, Australia, and Japan, where regulation and employee demand are pushing companies towards greater openness.

According to Robert Walters’ latest Pay Transparency E-guide, 48% of job seekers said they only apply for roles where salary ranges are disclosed upfront.

In Hong Kong, where salary disclosure has traditionally been limited, these developments are raising questions over how pay is determined and benchmarked during recruitment.

Robert Walters said the common practice of asking candidates for their current or previous salary is attracting more discussion, as some professionals question whether it places too much emphasis on past earnings rather than the value of the role or prevailing market rates.

John Mullally, managing director at Robert Walters Hong Kong, said candidates are increasingly asking how compensation is determined, not just what is being offered. He added that offers anchored to previous salary can affect perceptions of fairness during the hiring process.

The report also pointed to a shift in attitudes amongst younger workers. Only 5.5% of Hong Kong professionals overall are comfortable discussing compensation with colleagues, but this rises to 24% amongst Gen Z, compared with 4% of Millennials and 2% of Gen X.

Robert Walters said multinational companies may need to adopt more consistent pay communication across markets, as being transparent in one location but opaque in another could weaken internal trust.

The firm advised Hong Kong organisations to prepare by building clearer job architecture, explaining the basis for pay decisions, conducting internal equity audits, and training managers to hold data-driven and honest conversations about compensation.

Mullally said full pay transparency in Hong Kong is still some way off, but clearer and more consistent communication around pay will become increasingly important for competitiveness.