Report Shows More Organizations Are Leaning into Pay Transparency

U.S. employers are increasingly embracing pay transparency, even as regulatory complexities introduced by the Trump administration’s 2025 executive orders and the European Union (EU) Pay Transparency Directive present new challenges. This is according to WTW’s 2025 Pay Transparency Survey, released Monday, Aug. 11.

The global advisory firm conducted its survey in June and had 1,915 total respondents, including 388 in the U.S.

The survey found 82% of responding organizations in the U.S. are either communicating, planning or considering communicating individual pay ranges with employees and 79% are doing the same with external candidates, regardless of legal mandates. This shift is being driven by a combination of factors:

• Growing regulatory requirements (72%);
• Corporate values and culture (44%); and,
• Employee expectations (41%).

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• Checklist: Preparing U.S. Global Employers for EU Pay Transparency

Constructing Narratives Around Pay

Navigating the complexities of U.S. and international directives, many organizations are taking proactive steps to provide transparency around pay equity. According to the survey, 32% of responding organizations have publicly shared a narrative or commitment on pay equity, and 20% have done so for pay transparency. Another one-third are actively planning or considering doing similar disclosures. Among those that have issued a pay equity narrative, 72% have adopted a global perspective, addressing pay equity across the entire organization, although they often allow for local or regional differences within this narrative.

Despite the progress, there remains room for improvement. Less than half of surveyed employers said they share how individual base pay is determined and progresses. Even fewer said they convey how pay ranges are designed and managed as well as the employee’s position within the pay range.

Most organizations believe sharing pay ranges with employees will lead to:

• Significantly more questions about compensation from managers (70%);
• More questions about compensation from employees (68%); and,
• More pay negotiations (53%).

Also, concerns about managers’ ability to explain compensation programs and possible employee reactions are the most cited factors holding back pay program communication. However, the survey found organizations are currently more likely to educate senior leaders and managers on pay than employees but are planning for more employee education in the future.

“We’re witnessing a broader cultural shift take place around communicating pay, even though many U.S. employers are not directly impacted by the EU Pay Transparency Directive,” said Lindsay Wiggins, WTW’s North America pay equity co-leader. “Companies recognize that increased pay transparency is becoming a new reality that can support their employer brand and build competitive advantage in the talent market. To prepare for this, there are some essential fundamentals that companies need to get right, including robust job and rewards structures, and objective HR policies and processes to ensure the delivery of equal pay. In addition, it’s important for companies to look at their future ambition for pay programs and define how transparent they aspire to be.”

The Influence of Data and Technology

The survey also found 56% of responding organizations use metrics to measure the impact of pay transparency. The most prevalent metrics used are:

• Adjusted gender pay gap;
• Questions received from managers and employees; and,
• Impact on employee retention.

Despite growing interest, most polled employers are not utilizing artificial intelligence (AI) to support their pay programs. Only a small percentage said they are planning to use AI to support:

• Pay information communication (15%);
• Market compensation research (17%); or,
• Pay gap identification (11%).

Barriers to adoption include data privacy and compliance risks, oversight in AI-driven decisions and integration challenges with HR systems.

“With many organizations planning to take a global approach to their pay program communication, organizations need a clear, consistent and well-documented approach to disclosure to ensure accurate data is shared with candidates and employees,” said Jill Havely, WTW’s head of global community excellence and employee experience. “Educating relevant stakeholders and building employee trust is paramount in this process, as well as leveraging relevant technologies to support a clear and transparent communication process.”

Editor’s Note: Additional Content

For more information and resources related to this article, see the pages below, which offer quick access to all WorldatWork content on these topics:

• Employee Compensation
• Finance and Budgeting
• Organizational Performance