As pay transparency regulations come into force globally, only half of US employers say they are prepared, according to Mercer
Mercer, a business of Marsh (NYSE: MRSH) and a global leader in helping clients realize their investment objectives, shape the future of work and enhance health and retirement outcomes for their people, today released the US results of its Global Pay Transparency Survey, which gathered insights from 285 US-headquartered organizations, highlighting emerging trends, challenges, and opportunities shaping the future of pay transparency.
US-based employers’ preparedness to meet global pay transparency compliance requirements increased to 54% in 2025 from 39% in 2024. However, there is still a substantial gap in the implementation of enterprise-wide pay transparency strategies with only 17% of employers having fully implemented their approach.
Compliance with laws remains the primary driver for providing pay transparency, with nearly 93% of US organizations citing legal requirements as a key motivator. Only about half of US-based employers point to employee engagement (46%) and risk mitigation (50%) as important factors influencing pay transparency.
“While many organizations are focusing on meeting legal requirements, an increasing number of forward-thinking organizations are viewing pay transparency as a way to drive credible employee engagement and retention as well as elevate their employer brand. Being clearer on the rationale and reality of pay can go a long way in building trust with employees and candidates,” said Tauseef Rahman, Mercer’s Global Pay Transparency Solutions leader.
Employees expect fairness and clarity
Employee and candidate expectations for pay transparency are evolving. Mercer’s Inside Employees’ Minds report reveals that employees who perceive their pay as fair are 85% more engaged and 60% more committed. As a result, employers face pressure not only to ensure pay is fair and consistent but also to clearly explain how pay is set, grows, and links to performance and career progression.
One area where employers are fully committed to providing pay transparency is in job postings, with 92% expecting to disclose hiring pay ranges by the end of 2026, up from 83% in 2024.
Pay transparency is now tied to reputation
Pay transparency is increasingly a critical reputational and communications issue, driven by the ease with which compensation practices can now be compared across employers, locations and sectors through corporate reporting, official disclosures, third-party platforms and employee forums.
Despite this, only 13% of US-based organizations reported that they had established communication protocols to handle public inquiries on pay from external stakeholders, including candidates, media and investors. Organizations that adopt a coherent, enterprise-wide communications approach stand to benefit, while those with inconsistent practices may risk reputational harm.
Stakeholder engagement is critical to building organizational trust
Most companies designate a lead for providing and organizing pay transparency, typically within total rewards, HR leadership, or compensation teams, and often align it with broader HR transformation initiatives. However, broader stakeholder engagement remains limited. While 80% involve HR leadership actively and 41% engage business leaders, only 46% focus on educating managers, and fewer still (7%) conduct employee research.
To build greater trust, organizations must broaden engagement, involving leaders, managers and employees in both the design and communication of pay transparency initiatives.
“Pay transparency has transformed long-standing norms in the workplace. As employee expectations and regulations evolve, greater clarity around compensation is becoming a more common part of the job search experience,” said Mr. Rahman.
“But transparency doesn’t happen by accident. It requires deliberate choices about what to share and why. Employers that build strong foundations, equip leaders, leverage technology, and take a strategic approach will build trust and confidence among employees, candidates, regulators, and investors,” he continued.
For organizations ready to advance their pay transparency journey, Mercer offers tailored support—from readiness assessment, roadmap creation and strategy design, to analytics implementation and communication strategies—helping clients turn regulatory requirements into a powerful driver of trust and equity.
About Mercer’s Global Pay Transparency Survey
Mercer’s 2026 Global Pay Transparency Survey is the world’s largest comprehensive study of pay transparency practices across industries and regions. The survey was conducted online from September to October 2025 and more than 1,600 HR, rewards, and business leaders from organizations in 60 markets around the globe provided responses. The full report is available here.
About Mercer
Mercer is a business of Marsh (NYSE: MRSH), a global leader in risk, reinsurance and capital, people and investments, and management consulting, advising clients in 130 countries. With annual revenue of $27 billion and more than 95,000 colleagues, Marsh helps build the confidence to thrive through the power of perspective. For more information about Mercer, visit mercer.com, or follow us on LinkedIn and X.