All eyes are on pay transparency. The growing move toward stricter salary disclosure laws is making waves around the world at the same time that many employers are refining their total rewards and talent strategies to attract and retain top talent in a new world of work. Laws to strengthen pay transparency are emerging in New York City, California, the European Union (EU) Commission and many other jurisdictions. In some cases, companies are proactively posting salary ranges even when not required by law, according to Bloomberg.
The momentum toward greater transparency is so palpable that Inc. Magazine described 2022 as “the year of pay transparency,” and not only because of more requirements. Commitments to diversity, equity and inclusion (DE&I) and pay equity are just a couple of the underlying factors. Pay transparency is also viewed as a positive driver of retention and culture — a key asset in today’s evolving workforce and war for talent. Even more, open communication resonates with many younger workers.
To comply with new laws and help improve employee confidence in the pay program, organizations need to move toward clearer, more consistent and transparent pay management.”
Here is a closer look at the latest regulations across regions and how companies can best prepare for challenges that may arise.