Mercer has published the 2024 Global Pay Transparency Survey report, which points to the increasing significance of pay transparency as a key element in the strategies of companies worldwide. The report, based on the responses of over 1,000 organizations from 45 countries, shows that not only does pay transparency meet legal requirements, but it also attracts talent and increases employee satisfaction. A staggering 77% of companies viewed compliance with regulations as the main factor shaping their pay strategies, and half of the respondents saw this as an opportunity to better align with the company’s values and culture.
The publication, based on over 1,000 company responses, indicates that pay transparency is quickly becoming a requirement for organizations worldwide – key not only in the context of complying with local regulations in some countries, but also in attracting and retaining talents.
As highlighted in the report, 77% of companies recognized regulatory compliance as the key factor determining pay transparency strategies, with over 50% of organizations indicating an increase in employee satisfaction and alignment with company values as additional motivating factors.
“The time has come for companies to take action on pay transparency. Fair compensation is the second most important reason employees choose to stay in an organization, so employers must prioritize these efforts to ensure their success,” commented Gordon Frost, Global Rewards Solution Leader at Mercer.
Nearly seven in ten employers (69%) agree that pay transparency is more expected by candidates. In all regions, expectations for pay transparency are higher among candidates than employees, reflecting the growing demand for open pay practices in the talent market.
Although employers are aware of increasing expectations for pay transparency, there is still a significant gap in this area. Less than a third (32%) of organizations declared that they feel prepared to meet global requirements for transparency.
Despite differences in pay transparency regulations in the United States, American organizations remain leaders in this area, with one in five confirming the implementation of pay transparency strategies. In Europe (excluding the UK and Ireland), only 7% of organizations have implemented a pay transparency strategy, even though regulations will become effective in the EU as early as 2026.
According to predictions, companies plan to significantly increase the frequency of sharing pay ranges in job offers. Currently, 60% of organizations share pay information, but over the next two years, this proportion is expected to rise to 94% worldwide.
“The road to pay transparency is challenging, but it also offers opportunities for those who undertake it early and effectively. As organizations strive to meet the growing demand for transparency, they have a unique opportunity to transform what was perceived as a compliance effort into a competitive advantage,” Frost added.
Krzysztof Nowak – President of Mercer Poland concludes, “The key to the proper approach to the topics of transparency and the requirements of the Directive is to define the goals that the employer wants to achieve by adhering to the new regulations…”
Study Global Pay Transparency Survey
The 2024 Global Pay Transparency survey was conducted between April 15 and May 15, 2024. It involved 1,160 companies based in 45 countries. Almost 35% of the companies that participated in the survey operate in Europe (continental Europe and the Nordic countries), 32% in the United States, 22% in Canada, 7% in the UK and Ireland, and 4% in Asia.
Source: https://managerplus.pl/przejrzystosc-wynagrodzen-jako-kluczowy-trend-wyniki-raportu-2024-global-pay-transparency-survey-25440
