Aon plc’s 2024 North America Pay Transparency Readiness Study reveals that 75% of employers are unprepared for the upcoming pay transparency laws. These regulations aim to close the gender wage gap, but the study highlights significant challenges employers face in aligning with these new requirements.
Key Insights from the Study
1. Pay Transparency Readiness
- 18% of employers feel prepared for pay transparency.
- Industries leading in readiness:
- Retail & e-commerce: 33%
- Financial institutions: 21%
- Manufacturing: 20%
- Professional & business services: 20%
2. Pay Equity Challenges
- 51% of employers conducted independent pay equity analyses, with 84% identifying pay gaps.
- Only 34% of those addressing inequities have allocated funds to correct them.
3. Salary Range Communication
- 63% of employers do not share salary ranges with employees.
- Among the 37% who do:
- 61% only where legally required.
- 23% share ranges across the U.S.
- 16% share ranges globally.
- 81% of employers publish salary ranges on job postings, but approaches vary:
- 34% share partial ranges where required.
- 20% provide full ranges by location.
4. Pay Transparency Communication Strategies
- 69% of employers lack a pay transparency communication strategy.
- Employers with proactive strategies enhance their employee value proposition, boosting engagement and attracting talent.
Aon’s Solutions for Employers
- Radford McLagan Compensation Database: Enhanced features for benchmarking compensation, evaluating plan designs, and accessing talent insights.
- Strategic tools to prepare organizations for pay transparency, ensuring competitiveness in global job markets.
Pay transparency is becoming a global norm, driven by regulatory changes and cultural shifts. Employers who act early to address pay equity and develop transparent communication strategies will gain a competitive edge in attracting and retaining top talent, fostering fairness, and empowering their workforce.
