HR leaders should prepare for an influx of changes to pay transparency legislation and their impact on the workforce by strengthening communication and comp policies.
By Sabra Sciolaro
In a rapidly evolving workplace, pay transparency laws are becoming a defining feature of the employment landscape. As of today, Washington, D.C. and 14 states, including California, Colorado, and New York, have implemented pay transparency laws. These laws require employers to list salary ranges on job postings, along with a general description of benefits. This move is not limited to the U.S.—four Canadian provinces will have similar laws by the end of 2025, and many European Union countries will follow by the end of 2026.
These measures are a step toward reducing the pay gap between men and women, and mitigating pay inequities based on other protected categories like age and religion.
First: Meeting Employees Where They Are
The dynamic nature of today’s workforce means employers need to get creative and flexible in meeting employees where they are, both physically and emotionally. Over two-thirds of the global workforce is deskless, meaning overreliance on traditional communication methods like email is ineffective. Despite this, nearly half (48%) of employers still depend on email to communicate with their employees. This disconnect underscores the need for a shift in how critical information, such as new policies and pay transparency changes, is delivered.
Pay transparency laws are expected to affect nearly one in three U.S. workers by the end of 2025. For employees navigating an already stressful and dynamic workplace, the implementation of these laws could introduce new anxieties.
According to Firstup’s recent Workplace Communication and Well-being Survey, more than half (60%) of stressed workers cite their job as the primary source of their stress. With change overload hitting the workplace, it’s crucial to recognize that employees are fragile and that can lead to resistance to change. So, the key to a seamless rollout and implementation of new pay transparency measures relies on how these changes are communicated.
The Importance of Delivery in Communication
In a world where employees are increasingly sensitive to change, the way employers communicate with their workforce can make or break the employee experience. Whether it’s news of new pay transparency laws or a major global event, the delivery method matters immensely.
That’s why hyper-personalization in communication is essential. Employees value open dialogue and personalized messages that reflect their specific needs and circumstances. Investing in personalized communication strategies is worthwhile. Although it may require additional effort to tailor messages to different departments or individuals, the payoff is significant in terms of engagement, retention, and overall satisfaction.
Firstup also polled 1,000 deskless workers, revealing that nearly half (42%) prefer to receive critical company updates directly from their managers. This insight highlights the need for HR leaders to empower and train managers to be effective communicators. Personalized communication encourages a sense of connection and understanding, which is critical as employees navigate the changes brought about by pay transparency laws.
Avoiding Digital Overload
While the digital age offers numerous communication channels, it also presents the risk of digital overload. From a bird’s eye view, employees are required to manage several channels—such as Slack or Teams, CRMs, time tracking software, intranets, and more. Employers must be mindful of how much information employees receive and through which channels, or else it could lead to staff burnout.
The goal is to strike a balance between keeping employees informed and not overwhelming them with constant updates. This balance is essential in maintaining motivation, engagement, and a positive workplace culture, and can vary across employee levels or teams.
As of today, Washington, D.C. and 14 states, including California, Colorado, and New York, have implemented pay transparency laws.
Preparing for Pay Transparency Compliance
As pay transparency laws take effect state by state, employers must take proactive steps to ensure compliance and maintain a positive employee experience. First, conducting pay equity analyses to better understand pay gaps within a company is a key step to being able to talk about and justify salary decisions among staff. It will also illuminate areas where changes may be needed.
However, challenges in gathering and standardizing employee data, particularly in larger companies, can complicate this process. Fortunately, several new AI tools provide a more accessible and cost-effective alternative to relying solely on third-party firms. Once disparities are identified, employers must adjust their compensation strategies to identify opportunities to close the gaps, a task further complicated by the recent shifts in salary expectations following The Great Resignation.
Regular check-ins with employees, revisiting the company’s culture and mission statement, and reaffirming a commitment to pay equity are also foundational steps. Employers should also update job postings and hiring practices, revise internal policies, and conduct regular audits of compensation structures.
Employers must be ready to answer questions and address concerns from employees regarding pay transparency. Managers play a pivotal role in shaping employees’ perceptions of pay transparency, making their ability to communicate effectively a critical success factor. Employees naturally turn to their direct managers with questions about pay, fairness, and career growth, and if those managers lack clear, consistent messaging, it can erode trust and fuel skepticism.
To prevent this, organizations must equip managers with the right tools and training to have transparent, productive conversations about compensation. Providing clear FAQs and structured talking points helps managers articulate the company’s pay philosophy and equity efforts with confidence. Training sessions and role-playing exercises can prepare them for difficult conversations, ensuring they respond with empathy and clarity.
Additionally, giving managers access to salary bands, career progression frameworks, and structured escalation processes empowers them to provide accurate, informed responses. Encouraging proactive discussions about pay during regular one-on-ones and career development meetings further reinforces transparency. By embedding these practices into leadership development, companies create a culture where employees feel heard, valued, and confident in their organization’s commitment to fairness.
Managers play a pivotal role in shaping employees’ perceptions of pay transparency, making their ability to communicate effectively a critical success factor. Employees naturally turn to their direct managers with questions about pay, fairness, and career growth, and if those managers lack clear, consistent messaging, it can erode trust and fuel skepticism.Â
Navigating the New Landscape with Empathy
A large positive factor that comes from this shift in workplace regulations is reinforcing a culture of trust. By clearly communicating salary ranges and benefits to current and prospective employees, employers demonstrate a commitment to fairness and equity. This transparency can enhance the employer’s reputation, attract top talent, and improve employee morale.
Arguably, the most important layer of it all is being able to embrace these changes with empathy and understanding. By prioritizing personalized communication, avoiding digital overload, and proactively addressing concerns, organizations can successfully navigate the new pay transparency landscape. The result will be a more informed, engaged, and trusting workforce, ready to contribute to the company’s success in an era where transparency is not just a legal requirement, but a fundamental aspect of a positive workplace culture.
In the end, pay transparency is more than just numbers; it’s an opportunity to create and build an environment of openness, fairness, and respect. By meeting employees where they are and delivering communication thoughtfully, employers can ensure that the transition to greater transparency is a smooth and beneficial process for all.
Sabra Sciolaro is chief people officer at Firstup.
