In a global survey, only 19% of organizations said they’re ready for mandated pay transparency, with another 58% saying they’re “getting ready” for new laws, according to a July 10 report from Aon plc.
Across North America, 25% said they’re ready, while 59% said they’re preparing. Only 16% said they’re “not ready,” improving slightly from 18% in 2024.
“Pay transparency is no longer a buzzword. It’s a baseline expectation from employees and a regulatory imperative across an increasing number of jurisdictions,” Lisa Stevens, chief administrative officer at Aon, said in a news release. “Yet our data shows a concerning lack of progress. Organizations that fail to act face risks not only in compliance, but in their ability to attract, retain and engage talent.”
In the survey of more than 1,400 organizations across more than 40 countries, 71% said their state of readiness has improved during the past 12 months. At the same time, 60% said they implement pay transparency requirements based on geography, targeting efforts to where pay transparency is legally required.
Most companies pointed to “regulatory compliance” as their top motivator for transparency, which outpaced other factors by 40%. After that, employers said they wanted to improve the employee value proposition or align with corporate values.
To that end, only 26% said they’ve conducted a pay equity analysis during the past 12-18 months, which suggests most companies continue to prioritize compliance over equity-focused action, Aon said.
Beyond that, 69% said they publish salary bands during recruitment, but only 21% do so for all job postings, which may also indicate a compliance-driven approach, the firm noted.
Aon advised employers to shift from tactical compliance to strategic action, especially with the EU Pay Transparency Directive scheduled to take effect in 2026. Only 30% of employers reported having a communication strategy for pay transparency, including manager training and communication plans from managers to their teams.
In the U.S., fewer than 1 in 5 companies have a pay transparency strategy in place, according to a Mercer report. Despite that, 63% said they plan to share pay information internally and externally in a standardized way, and 56% said employees should have the same access to compensation data.
As pay transparency regulations expand, companies have expressed concerns about adapting their practices, investing in pay equity and preparing for complex pay transparency requirements, according to a Syndio report. HR leaders cited inconsistent pay decisions as a major reason why their organizations seem unprepared.