Global Pay Transparency

At Mercer, we help our clients navigate the path to pay transparency

Pay transparency is transformative. It is a fundamental principle that—if done well—can drive fairness, equality, and trust within organizations. In today's rapidly evolving workplace, pay transparency has emerged as a critical factor in fostering a culture of openness and accountability, and is an expectation of candidates and colleagues alike.

What is pay transparency and why is it important?

Pay transparency is the practice of openly sharing information about compensation structures, salary ranges, and the factors that influence pay decisions. By shedding light on these previously opaque processes, organizations can empower their employees with knowledge and understanding, creating a more equitable and engaged workforce.

At Mercer, we understand the significance of pay transparency and its potential to drive positive change. That's why we conducted a comprehensive pay transparency survey, with over 1,000 participants, to gain valuable insights into the opportunities, challenges, and governance surrounding this important topic. A key insight is the gap between the need (two-thirds of organizations agree pay transparency is an expectation of candidates and employees) and the readiness (one-thirds of organizations agree they are prepared for the impact of global requirements). Navigating this gap is the key opportunity for organizations to differentiate.

The full results of this survey (due out late summer 2024) provide us with a deep understanding of the landscape and enable us to offer data-driven solutions tailored to your organization's unique needs.

Breadth across job design and HR processes

But our expertise extends beyond pay transparency and equity. Mercer can also support you in broader areas such as compensation and HR processes. Our comprehensive suite of solutions is designed to optimize your compensation strategies, attract and retain top talent, and drive organizational performance. From designing competitive salary structures to implementing effective performance management systems, we can help you create a holistic approach to compensation and HR that aligns with your business objectives.

The role of pay equity

One of the key areas we focus on is pay equity. Our team of experts will work closely with you to analyze the survey findings and identify any existing gaps or disparities within your organization. We will help you develop strategies and action plans to address these gaps, ensuring fairness and compliance with regulatory requirements. Whether it's conducting pay equity analyses, defining clear salary ranges, or implementing transparent compensation structures, we have the expertise to guide you every step of the way. 

Depth in EU directive and reporting

In addition to pay equity, we also understand the importance of compliance with the EU directive on pay transparency. Our consultants are well-versed in the intricacies of this directive and can help you navigate its requirements, including what having a gender-neutral job evaluation team means for your job architecture. We will assist you in aligning your compensation practices with the directive, ensuring transparency and fairness in your organization's pay processes. 

Related insights

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    Interested in improving your pay transparency? Mercer would be happy to help.