More Companies Expected to Disclose Pay Information

Pay rate and range disclosures are about to increase in North America.

A new Willis Towers Watson (WTW) survey called “The 2022 Pay Clarity Survey” finds that 17 percent of companies are already disclosing pay-range information in U.S. locations where they are not required to by state or local laws.

Also, 62 percent of organizations are planning to, or considering, disclosing pay rate information in the future, even where there are not local mandates requiring them to do so. This will include information such as hiring range and full salary range, with 58 percent of companies planning on doing the former and 48 percent the latter. The survey finds that 71 percent of companies plan to use a consistent approach in determining which pay rate and range information to disclose across all jobs. Over half of organizations (57 percent) are applying a geographic pay policy to determine the pay rates or ranges, and they will differ based on location of the job.

“We expect the recent wave of pay transparency legislation to continue,” says Mariann Madden, North America Fair Pay co-lead, WTW. “Regulatory requirements are only one factor in the expected increase in disclosures and communication about pay. Job seekers and current employees want to know and understand that they are treated fairly and are provided with equal opportunities to thrive and grow within the organization.”

However, some companies are holding back on communicating pay information. About 3 in 10 (31 percent of) organizations say their pay programs are not ready for this kind of transparency. Almost 30 percent cite administrative complexity, and 25 percent cite lack of clear job architecture as a reason to hold back. In part due to these underlying considerations, almost half of all organizations (46 percent) cite possible employee reactions as a reason for holding back on communicating about pay.

The survey also finds that most organizations plan to provide a description of their approach to managing pay equity. One-third of North American organizations (33 percent) are already disclosing information on their approach to managing pay equity, and 53 percent expect to do so in the future and on a global level.

“We’re seeing a clear trend among employers around the globe publicly committing to fair pay. In North America, companies are beginning to disclose their adjusted pay gaps, while in Europe more organizations are sharing their fair pay ambitions as well as their plans to monitor, track, and communicate progress toward their commitments. We expect that level of transparency will likely become the norm as external stakeholders demand more clarity and visibility into companies’ pay management practices,” concludes Lindsay Wiggins, North America fair pay co-lead for WTW.

From: BenefitsPRO