Global regulatory requirements prompting North American companies to comply with pay transparency, WTW survey finds

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[{"type":"text","content":"Increase in transparency sparks anticipation of more employee questions and salary negotiations\nNEW YORK, Sept. 18, 2024 (GLOBE NEWSWIRE) -- The majority of North American organizations are communicating pay program information to their employees, according to a survey by leading global advisory, broking and solutions company WTW (NASDAQ: WTW). The 2024 Pay Transparency Survey found several factors, including increasing regulatory requirements around the globe such as the EU Pay Transparency Directive, are encouraging North American organizations to establish pay transparency strategies. These strategies include assessing their job and pay structures, evaluating their pay policies and practices, conducting pay gap and pay equity analytics, and preparing for increased pay communication and education among all stakeholders. The survey found communicating job level (74%), variable pay opportunities (58%) and how individual base pay is determined (65%) is already typical across the region, with at least 55% of respondents doing so or planning to do so. Sharing individual employees’ pay ranges and how pay ranges are determined is also likely to become prevalent as pay transparency legislation continues to proliferate across the U.S., Canada and Europe. When it comes to sharing pay ranges with job candidates, most organizations are already communicating the hiring rate/range for jobs to both their external candidates (75%) and internal candidates (69%). For organizations with operations in North America that are already communicating information, most (86% in the U.S. and 58% in Canada) are communicating pay rates or pay ranges across the entire country or region regardless of the state or provincial regulations. According to the survey, regulatory requirements are the most common driver (73%) of increased communication about pay programs. Other commonly cited factors include confidence in their company values and culture (47%) and employee expectations (46%). “Employers are seeing an increase in regulatory requirements around the globe, which has forced many to act fast and comply with a consistent minimum standard, regardless of location,” said Mariann Madden, North America Pay Equity co-leader, WTW. “As a result, we’re seeing employers across North America increase the visibility of pay information as well as provide clarity to em...

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