Less than one-third of companies feel prepared to meet pay transparency requirements, according to Mercer’s Global Pay Transparency Survey
NEW YORK, October 18, 2024 — Mercer, a business of Marsh McLennan (NYSE: MMC) and a global leader in helping clients realize their investment objectives, shape the future of work and enhance health and retirement outcomes for their people, released today its 2024 Global Pay Transparency Survey Report.
The report, based on responses from more than 1,000 companies worldwide, finds that pay transparency is quickly becoming a requirement for organizations across the world — critical not only to comply with local regulations in certain countries but also to attract and retain employees.
The survey found that while 77% of companies cited compliance as a key driver of their pay transparency strategy, more than 50% of companies noted increasing employee satisfaction and aligning with company values as additional leading drivers.
“It’s time for companies to act on pay transparency. With fair pay the second-most important reason employees choose to stay with an organization, employers need to prioritize these efforts to position themselves for success,” said Gordon Frost, Mercer’s Global Rewards Solution Leader.
Nearly seven out of 10 employers (69%) across the world agree that pay transparency is an expectation of candidates. In all regions, expectations for pay transparency are higher among candidates than employees, reflecting the growing demand for open compensation practices in the talent market.
While employers acknowledge the rising expectations around pay transparency, there is still a significant readiness gap. Less than one-third (32%) of organizations said they feel prepared to meet global transparency requirements.
Despite the variation in pay transparency legislation in the US, American organizations are leading the charge, with one in five reporting an established pay transparency strategy. Across Europe (excluding UK and Ireland) only 7% of organizations have implemented a pay transparency strategy, despite pay transparency legislation coming into force in the EU in 2026.
Looking ahead, companies plan to significantly increase their level of sharing of hiring pay ranges on job postings. Currently, 60% share hiring pay ranges but this is expected to rise to 94% globally in the next two years.
“The journey towards pay transparency is challenging, but it’s also ripe with opportunities for those who navigate it early and effectively,” continued Mr. Frost. “As organizations strive to meet the growing demand for transparency, they have the unique chance to transform what was seen as a compliance effort into a competitive advantage.”
