News Ticker

Only 19% of U.S. Companies Are Transparent About Pay

Mercer, a business of Marsh McLennan 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, has released the U.S. results of its 2024 Global Pay Transparency Survey Report.  

The report, based on responses from more than 1,000 companies worldwide, and more than 300 companies in the U.S., 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 finds that while 77% of companies globally 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.  

“The data highlights a disconnect between the importance employers say they place on advancing these strategies and how much progress has been made,” says Gordon Frost, global rewards solution leader at Mercer. “With fair pay the second-most important reason employees choose to stay with an organization, don’t wait to prioritize these efforts, because there is still a lot of work to be done.”  

Despite pay transparency legislation in several states including New York, Colorado, and California, only 19% of U.S. companies have a pay transparency strategy. Despite many not having a set strategy, 63% of U.S. organizations plan to share pay information both internally and externally in a standardized manner.  

Additionally, the expectations of employees and candidates are continuing to increase when it comes to pay transparency and fairness, with 75% of U.S. employers believing that pay transparency is an expectation of candidates, and 54% saying it is an expectation of current employees. Furthermore, 56% of employers believe employees should have equal access to compensation information, regardless of the country or region in which they work.  

To better understand the unique needs of their workforce, 65% of organizations intend to conduct pay equity studies, while 59% are making adjustments to employee compensation to ensure alignment with external market rates and other pay equity considerations. Companies will need to consider whether they should provide equal access to compensation information for all employees or adopt a different approach based on regional and local regulatory requirements.  

However, 37% of employers report that the lack of manager capability to understand and explain compensation programs and practices to employees is their biggest challenge.  

“Don’t underestimate the power of proactive communications about compensation, because employees will create their own perceptions of pay with or without information,” says Tauseef Rahman, a partner in Mercer’s career practice. “With manager enablement one of the biggest challenges our clients face in 2025, these employees will be critical to your pay transparency strategy’s success.”  

Nearly seven in 10 employers 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.  

Across Europe (excluding U.K. 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 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,” Frost says. “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.” 

Tags: Payroll & Compensation

Recent Articles