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1、Mercers 2024 Global Pay Transparency Survey ReportHow to turn insights into actionMercers 2024 Global Pay Transparency Survey Report2Contents1.Executive summary 32.Methodology 53.Pay transparency sentiments and expectations 64.The legislative landscape and its complexities 75.Evolution of pay transp

2、arency 96.Novartis:a Mercer client case study 117.Employee retention and fair pay 138.Pay transparency practices and strategies 159.Challenges and opportunities 2610.Seize the moment 2911.Appendix 30Contents1234567891011Mercers 2024 Global Pay Transparency Survey Report3Executive summaryPay transpar

3、ency is quickly becoming a basic requirement for organizations across the world critical not only to maintaining legal compliance but also to attracting and retaining employees.No longer a matter of if,in many regions the critical questions have shifted to when and how.Our new Mercer research unders

4、cores this reality,showing the urgency for businesses to act decisively,but in a nuanced manner that reflects the reality of varying requirements in different regions of the world.In spring of 2024,1,160 respondents headquartered in different regions around the globe participated in Mercers 2024 Pay

5、 Transparency Survey,seeking to understand how various organizations are approaching the changing landscape of pay transparency,as well as meeting employee expectations for more pay disclosure.In this report,we share those findings.One thing is clear,pay transparency is not a passing fad.No matter w

6、here they operate,our data show employers increasingly recognizing rapidly-evolving candidate and employee expectations for openness about compensation.The legislative landscape is complex and fraught with risks but it also offers opportunities for those who are proactive.That said,programs initiall

7、y designed for internal HR purposes are falling short and not rapidly adapting to public-facing transparency expectations.Companies must be honest about how strong their foundations are addressing job architecture,compensation structures,pay equity and communications to ensure their pay transparency

8、 can meet the moment.Contents1234567891011Mercers 2024 Global Pay Transparency Survey Report4Compliance is a key driver for pay transparency in most regions as the results of this research show but the biggest underlying risks and benefits for pay transparency come through business outcomes that mig

9、ht or might not be met across three key categories:Retention:As employee push for pay transparency and pay equity as part of their employee deal,how this is met will impact whether employees stay or go.Attraction:As new hires look for clear signals about how employers pay,the employer brand needs to

10、 adapt to attract candidates.Engagement:As employees become more committed to and engaged with employers they feel are treating them in a fair and transparent manner,those who are not authentically committed may have challenges with engaging their talent.Setting a strategy that aligns with your glob

11、al business goals and talent strategy will therefore prove crucial to success and growth.While it is possible to adopt a minimal compliance approach,the rationale behind each decision must be clear and defensible to stakeholders.Market and regional readiness will play a pivotal role in how these str

12、ategies roll out.End goals should be aligned across regions,but as we have observed in many large organizations,those strategies may need to be tailored market by market to respond to different labor and legal pressures.Whatever the geographic strategy nuances,companies should adopt a holistic,long-

13、term perspective on pay transparency.This is not a one-time initiative that can be set and forgotten.Expectations will continue to evolve and organizations must be prepared to adapt continuously as they go.To effectively address pay transparency,companies must first assess their existing structures

14、and processes.This involves a critical evaluation of job architecture,compensation strategies and pay equity initiatives.Transparency programs designed solely for HR purposes may not be suitable for public disclosure without significant modifications.Companies that act now to strengthen their founda

15、tions and align their strategies with global business goals will be better positioned to navigate this complex landscape and achieve sustainable,equitable outcomes.Contents1234567891011Mercers 2024 Global Pay Transparency Survey Report5MethodologyThe survey was administered online from April 15 to M

16、ay 15,2024.Respondents were invited to participate in the open survey.There were 1,160 participants from across 52 countries representing 1,144 companies headquartered in 45 countries.Just over 70%of companies are for-profit multinational companies and another 20%are for-profit single country compan

17、ies.Approximately 35%of companies were headquartered in Europe,32%in the United States,with another 22%in Canada,7%in United Kingdom and Ireland,and 4%in Asia.Contents1234567891011Mercers 2024 Global Pay Transparency Survey Report6Pay transparency sentiments and expectationsDifferentiating key conce

18、pts:Pay transparency,pay equity and pay gap reportingBefore going into the findings,it is important to distinguish between pay transparency,pay equity and pay gap reporting,even though they are often intertwined.For the purpose of this report we define those terms as such:Pay transparency involves a

19、n employer sharing what,why and how its employees are compensated relative to the current market and context.This includes an understanding of the companys compensation philosophy,strategies and practices,as well as the purpose,design and understanding of different forms of pay.Pay equity refers to

20、ensuring fair pay for similar work regardless of gender or race/ethnicity.This includes compensation based on factors such as job,location and experience.It encompasses the full range of payments and benefits,such as basic pay,non-salary payments,bonuses,stock awards and allowances.Pay gap reporting

21、 involves public disclosure of average or median pay gaps,particularly between males and females,often broken down by job level or salary quartiles.This is increasingly becoming a legislative requirement,especially in Europe.Contents1234567891011Mercers 2024 Global Pay Transparency Survey Report7The

22、 legislative landscape surrounding pay transparency is becoming increasingly complex.With varying requirements across different jurisdictions,the risk of inefficiency and non-compliance is high for multinational corporations.Companies must navigate this complexity with careful consideration and stra

23、tegic planning,since a compliance only approach will undoubtedly result in inconsistent employee and candidate experiences.United StatesIn the US,pay transparency legislation varies widely by state,with an emphasis on communicating pay ranges to candidates and employees.States like California,Colora

24、do and New York have already implemented stringent laws requiring employers to disclose pay ranges in job postings.For instance,Californias pay transparency law,effective January 1,2023,mandates employers to provide pay scales to job applicants upon request and to current employees.Colorados Equal P

25、ay for Equal Work Act requires employers to include compensation ranges and benefits in all job postings.This patchwork of state regulations creates a challenging environment for nationwide employers,necessitating a strategic approach to compliance so as not to result in inconsistent employee and ca

26、ndidate experiences state to state.CanadaCanada follows a similar path,with provinces independently proposing and passing laws focused on pay range communication.Ontarios Pay Transparency Act,although currently on hold,set the stage by requiring employers to include salary ranges in public job adver

27、tisements and to report on workforce compensation.British Columbia and Nova Scotia are considering similar legislation,aiming to increase transparency and reduce pay inequities.Companies with operations across the US and Canada for example have a more complex approach to navigating consistent experi

28、ences.European Union and United KingdomIn the European Union(EU),the historical emphasis has been on pay gap reporting but new directives will soon require pay range communication as well.The EU Pay Transparency Directive1,set to take effect in 2026,mandates that employers provide information on ind

29、ividual and average pay levels,broken down by gender.This directive also requires companies to conduct pay assessments and report on pay gaps.The European Commissions commitment to gender equality drives these initiatives,aiming to address systemic pay disparities across member states.Multinational

30、companies in the EU must prepare for these changes by implementing comprehensive pay transparency policies that align with the new directives.Currently,the UK does not have any pay transparency laws,though gender pay gap reporting obligations were passed in 2017 for certain employers.While The legis

31、lative landscape and its complexitiesContents1234567891011Mercers 2024 Global Pay Transparency Survey Report8companies in the UK are not subject to the requirements of the Pay Transparency directive in the EU,any company doing business across Europe may want to apply a consistent approach for their

32、entire workforce,or at a minimum across the region.The recently elected Labour party has made the expansion of pay gap reporting(to include ethnicity and disability reporting)a part of its policy platform as a part of a broader transparency and fairness approach.Asia-PacificIn the Asia-Pacific(APAC)

33、region,the focus has largely been on pay gap reporting,with limited emphasis on pay range communication.Countries like Australia and Japan have made strides in gender pay gap reporting.Australias Workplace Gender Equality Act requires non-public sector employers to report on gender equality indicato

34、rs,including remuneration.Japans Act on Promotion of Womens Participation and Advancement mandates disclosure of gender pay gaps for companies with over 301 employees.However,pay range communication is still emerging as a topic in this region.As awareness grows,APAC countries may begin to adopt more

35、 comprehensive pay transparency measures.Latin America Latin America(LATAM)is starting to pay more attention to the topic,especially as Brazil leads the way but overall regional focus remains low.Brazils Ministry of Labor and Employment has introduced guidelines for companies to report gender and ra

36、cial pay gaps,reflecting a growing recognition of the importance of pay equity.Other countries in the region,such as Mexico and Argentina,are observing these developments but have yet to implement widespread pay transparency legislation.As interest in pay equity increases,LATAM countries may follow

37、Brazils lead,prompting companies to proactively address pay disparities to stay ahead of potential regulatory changes.Contents1234567891011Mercers 2024 Global Pay Transparency Survey Report9The journey towards pay transparency has been driven by several factors.The proliferation of data on sites lik

38、e Glassdoor,Linkedin,Indeed and PayScale have made compensation information more accessible than ever.Societal and employee expectations have also shifted significantly in recent years,with nearly 90%of Gen Z2,3 respondents expressing comfort in openly discussing pay at work and nearly half of all c

39、andidates stating they wont even apply for a job without upfront pay rate disclosure.Legislative action such as we listed above has been another major catalyst,beginning with Californias pay transparency legislation in January 2018 and expanding globally.Additionally,there is growing shareholder foc

40、us on workforce and environmental sustainability,highlighted by the EU Corporate Sustainability Reporting Directive(CSRD)which took effect in the 2024 financial year.Overall,the push for pay transparency is reshaping the corporate landscape.Companies must act decisively to navigate this complex and

41、evolving landscape,ensuring they meet both legal requirements and the expectations of their workforce.This report provides a comprehensive overview of the current state of pay transparency,offering actionable insights and strategies to help organizations achieve compliance and leverage transparency

42、as a strategic advantage,especially in a world where information and practices can easily be compared across geographic boundaries.Fair pay is a critical factor in both employee attraction and retention.As our 2024 Mercer Global Talent Trends4 and 2023-2024 Mercer Inside Employees Minds5 reports hav

43、e previously revealed,there is a significant gap6 between employee expectations and organizational preparedness when it comes to pay equity.For organizations focused on attraction,retention and differentiating their employee experience this gap underscores the urgency for companies to address employ

44、ee expectations proactively as well as keep trust and engagement high.According to Mercer research,almost half(46%)of candidates wont apply for a job without pay information.When employees believe they are paid fairly they are twice as likely to understand how their organization determines compensat

45、ion,twice as likely to have their pay ranges communicated by their managers,85%more engaged and 60%more committed to their organization.Evolution of pay transparencyContents1234567891011Mercer Global Pay Transparency Report10Mercers 2024 Global Pay Transparency Survey Report10According to employees2

46、0222024202412345678910111213141516171819201235781519910144613111216201718Job securityFair payWork cultureLearning opportunitiesFlex workingCompetitive rewardsWorkloadCoworkers/peopleConfidence in org strategyHealth insuranceLeadershipWell-being programsOrg brand/reputationCareer advancement opportun

47、itiesOrg making positive impactDEIInnovationTime offRetirement optionsManagers4267125According to HR Figure 1.Fair pay makes employees stay Promotes accountability,leading to fairer and more equitable outcomes.Creates a competitive advantage,attracting and retaining talent while building a more incl

48、usive culture.After job security,fair pay is now the second most important reason employees choose to stay with their employer,up from fourth place in 2022.The business benefits of fostering a transparent pay environment are also well-established.Pay transparency:Builds trust with the organization,d

49、riving higher performance and engagement.Delivers a consistent experience for both candidates and employees,irrespective of location.Risks of not appropriately engaging in pay transparency could be the opposite of these stated benefits.Contents1234567891011Mercers 2024 Global Pay Transparency Survey

50、 Report11Novartis:a Mercer client case studyIntroductionIn 2018,Novartis made a public pledge with the United Nations Equal Pay International Coalition(EPIC)to help close the overall gender pay gap.With this,Novartis has made a significant commitment to gender,pay equity and pay transparency through

51、 its participation membership.The EPIC pledge was renewed in 2023 to maintain gender balance in management and review the human resources practices beyond base pay to eliminate any further potential sources of bias from the system by 2027.Novartis EPIC pledge commitments and key driversThe key drive

52、rs behind Novartis commitment to EPIC are rooted in its core values of diversity,equity and inclusion.Novartis recognizes the importance of creating an inclusive and equitable workplace that empowers all its employees to reach their full potential.Diversity and as part of it gender balance are seen

53、as key drivers to build an environment,which boosts innovation and improves the lives of patients worldwide.Novartis has closely monitored the achievements of their commitments since entering the EPIC pledge in 2018.One of the greatest successes was that they were able to have a very strong commitme

54、nt across Novartis to work on this pledge and to renew it in 2023 with updated commitments.Having the whole organization aligned on the importance of this topic provides the foundation to achieving their commitments.As part of their integrated annual report(“Novartis in Society”),they share progress

55、 on pay and gender equity:All employees are covered by a robust pay equity validation methodology.Based on global data as of December 31,2022 womens earnings at Novartis are within one percent of mens.By 2023,Novartis globally removed historical salary comparisons from their offer processes.Novartis

56、 implemented pay transparency functionality in their HCM systems(where legally permissible),meaning employees have access to individual pay position compared to internal and/or external benchmark data.Novartis achieved gender balance in management,with women representing 48%of their overall manageme

57、nt globally at the end of 2023.Gender-neutral parental leave(minimum 14 weeks of paid leave,as of Jan 2021)was implemented globally.Mercer is Novartis Global Pay Transparency AdvisorContents1234567891011Mercers 2024 Global Pay Transparency Survey Report12Success and challenges,but clear communicatio

58、nNo matter how big their successes are,it is clear to them that communication and change management is key.This is why sharing about their commitments and respective progress,both internally and externally,is part of their story.The implementation of their EPIC commitments in each country was based

59、on specific needs and local requirements,founded on a series of principles to drive global consistency and honor their enterprise-wide commitment.It is important to be mindful that the full realization of EPIC was a multi-year journey,with some countries achieving certain milestones earlier than oth

60、ers.Where applicable,local works councils and/or trade unions were consulted prior to finalizing country specific rollout plans.The experience shows that due to attrition rates and because of the change impact,continuous training is required to achieve deep implementation in the organization.To be c

61、onsistent on messaging and to join forces,alignment with the companys values and the D&I strategy is key to success.Until HR systems are fully integrated,flexible and ready to comply with increasing requirements for external reporting,it will still take some more steps going forward.A commitment to

62、the future!While the success in Novartis 2018 commitments is an important achievement,their journey will not stop there.Pay and gender equity is something that Novartis remains fully committed to,and to ensure sustainable change they have renewed their EPIC pledge in September 2023 to sustain progre

63、ss and meet enhanced legislative requirements.By continuing their focus on maintaining gender balance in management,they will also positively influence the overall gender pay gap which is often driven by unequal distribution of one gender in senior leadership levels.Eliminating bias from HR policies

64、 and practices promotes a fair and inclusive work environment,allowing their people to thrive based on merit and equal opportunities.This aligns with their commitment at Novartis to equal pay for equal work of equal value.To underline this aspiration Novartis has published the aspirational goals in

65、their annual report,publicly sharing their commitments with their shareholders and society.Disclaimer:Novartis policy requires that all employment decisions are based solely on job-related factors,including the skills,qualifications and experience of the candidates for the role,without regard to gen

66、der,race,ethnicity or any other personal characteristics which are unrelated to the job.Novartis,as a global company,complies with the laws of each country it operates within.Contents1234567891011Mercers 2024 Global Pay Transparency Survey Report13Our company is prepared for the impact of global req

67、uirements28%31%30%7%Strongly agree AgreeNeutralDisagreeStrongly disagreeStrongly agree AgreeNeutralDisagreeStrongly disagreeTransparency is an expectation of our employeesTransparency is an expectation of candidates10%48%31%10%13%56%25%5%Source:Global Pay Transparency SurveySource:Global Pay Transpa

68、rency SurveyEmployee retention and fair pay This rising importance of fairness in employee preferences underscores the growing importance of transparent pay practices in retaining talent.While employers acknowledge the rising expectations around pay transparency our current data reveals there is sti

69、ll a significant readiness gap.Less than one-third(32%)of organizations said they feel prepared to meet global transparency requirements.This discrepancy highlights the pressing need for organizations to elevate their transparency practices to meet both candidate and employee expectations effectivel

70、y.Given the background and context above,we now turn to results from our survey.According to our Global Pay Transparency 2024 findings 69%of global companies agree or strongly agree that transparency is an expectation of candidates.Additionally,58%of companies acknowledge that employees also expect

71、pay transparency.Figure 2.Transparency expectationsFigure 3.Our company is prepared for the impact of global requirementsContents1234567891011Mercers 2024 Global Pay Transparency Survey Report14Strongly agree AgreeNeutralDisagreeStrongly disagreeTransparency should be the same across all geographies

72、14%45%26%12%Source:Global Pay Transparency SurveyAlthough,59%of survey respondents believe that transparency should be consistent across all geographies,there were significant regional variations in pay transparency readiness.Across all regions,employers report higher candidate pay transparency expe

73、ctations as compared to employees.Companies in the UK,Ireland and Europe were the most optimistic about the potential for pay transparency to improve pay equity.Employees in the UK and Ireland had the highest expectations for pay transparency,suggesting a more urgent need for organizations in these

74、regions to advance their transparency efforts.Figure 4.Transparency should be the same across all geographiesContents1234567891011Mercers 2024 Global Pay Transparency Survey Report15Forty-four percent of organizations across all regions reported they are still in the strategy development phaseGlobal

75、 trends and benchmarks for complianceIn our practice at Mercer,weve often found that organizations tend to fall into one of three categories when it comes to change:Resisters,transformers and leaders.This is how those models look in the area of pay transparency:Resisters prioritize confidentiality a

76、nd focus on minimum requirements.Transformers recognize the potential benefits of pay transparency but acknowledge the need for preparation and risk mitigation.Leaders pioneer in the pay transparency space,setting benchmarks for others to follow.Looking closely at practices and strategies around int

77、egrating pay transparency,we uncovered some key variables and wide differences in organizational preparedness,internal versus external sharing practices,responsibility for transparency,motivating factors,the scope of shared information,actions to improve transparency,future plans and more.Preparedne

78、ss:A varied landscapeIn this survey,we found 69%of organizations engaged in pay transparency efforts,with 24%acting as leaders already aligned on a global strategy and 44%acting as transformers,currently developing their next steps.US companies are leading this charge,with one in five reporting an e

79、stablished pay transparency strategy and only 7%not yet engaged.By contrast,Asia presents a mixed picture,with three-quarters of companies equally split across three stages,25%currently developing strategies,25%planning to start within the next 12 months and 25%who dont have it on the horizon in the

80、 next year.Overall,the majority of organizations across all regions reported they are still in the strategy development phase,particularly in regions like the UK and Canada,where 79%and 63%of companies,respectively,are either currently developing their strategy or plan to do so next year.Only 4%of c

81、ompanies globally strongly agreed that they are ready for the impact of global pay transparency requirements.Pay transparency practices and strategiesContents1234567891011Mercers 2024 Global Pay Transparency Survey Report16GlobalAsiaCanadaEuropeUnited Kingdom&IrelandUnited StatesWe have already deve

82、loped and implemented a strategy and approachWe have aligned on global strategy but are still in the process of implementing an approachWe are currently developing our strategy and approachWe have not yet started but will start in the next 12 monthsWe have not yet started and do not plan to start in

83、 the next 12 months13%17%16%7%1%19%11%8%7%10%17%14%44%25%41%49%51%43%23%25%22%28%28%16%9%25%14%5%3%7%Source:Global Pay Transparency SurveyNote:For Europe,our cuts exclude UK&Ireland.Figure 5.Current progress with implementing a pay transparency strategyContents1234567891011Mercer Global Pay Transpar

84、ency Report17Mercers 2024 Global Pay Transparency Survey Report17CanadaFranceGermanyIrelandNetherlandsPolandSingaporeSwedenUnited KingdomUnited StatesNordicsNo Yes,we intend to share pay information internally or externally in a more standardized wayYes,but only where legislatively required 11%48%41

85、%3%0%0%48%48%49%51%3%55%41%2%60%37%8%41%51%24%36%40%57%43%2%63%35%8%63%29%1%53%46%Denmark3%52%45%Source:Global Pay Transparency SurveySharing internally vs.externally:Regional leadersWhen it comes to sharing pay information internally and externally,we saw varying levels of commitment and readiness

86、across different regions.The UK,US and Netherlands are leading the way with a significant percentage of companies in these regions planning to increase their levels of shared pay information.By contrast,Singapore has the highest percentage of respondents who do not intend to increase transparency le

87、vels,followed distantly by Canada.Figure 6.Current and proposed sharing of pay information internally across regions:Over the next two years,do you anticipate increasing the level of pay information that is shared internally or externally?Contents1234567891011Mercers 2024 Global Pay Transparency Sur

88、vey Report18HR leadership Compensation or total rewardsTalent acquisitionDiversity,equity&inclusionVaries by regionOther52%41%1%1%1%4%Cross-functional transformations are three times more likely to be successful compared with single-area transformations led by one function or business unit.Source:Gl

89、obal Pay Transparency SurveyResponsibility:Who owns pay transparency?In more than half of the organizations we surveyed,pay transparency was primarily the responsibility of compensation and total rewards functions but we also saw HR leaders being accountable in 40%of companies.This division undersco

90、res the importance of specialized roles in managing transparency initiatives effectively and ensuring alignment with broader HR and organizational goals.That said,Oliver Wymans Transformative Moments In A Time Of Permacrisis7 has also found that joint,cross-functional transformations are three times

91、 more likely to be successful compared with single-area transformations led by one function or business unit arguing that a combination of specialization and cooperation may have maximum effectiveness.Figure 7.Who is primarily responsible for pay transparency in your organization?Contents12345678910

92、11Mercers 2024 Global Pay Transparency Survey Report19ComplianceAlign with company values and/or diversity,equity and inclusion commitmentsIncrease employee satisfaction with pay and/or perceptions around fair payAlign with our talent and/or reward philosophiesAlign with our pay equity strategyAlign

93、 with candidate expectations and/or enhance recruiting experienceEnhance our employer brand with external candidatesAlign with employee expectationsIncrease employee commitment/retentionNot applicable,we do not have a pay transparency strategyInvestor pressure or to attract investorsNone of the abov

94、e77%53%51%49%48%36%32%31%31%9%4%1%Source:Global Pay Transparency SurveyMotivators:Beyond complianceResisters tend to be most concerned with adhering to the letter of the law,but going no further,and indeed,compliance with legislation is currently the most common driver of pay transparency,cited by 7

95、7%of companies.That said,39%of companies would fall into the transformers category,as they are exploring standardized approaches beyond legal requirements.Figure 8.What are the key drivers for your pay transparency strategy?Contents1234567891011Mercer Global Pay Transparency Report20Mercers 2024 Glo

96、bal Pay Transparency Survey Report20Source:Global Pay Transparency Survey27%51%22%Construction or engineering50%28%18%Consumer goods20%45%25%9%Energy and utilities39%32%18%12%Financial services and banking42%36%12%9%Tech38%25%16%22%Insurance and reinsurance43%26%22%9%Life sciences36%36%23%Manufactur

97、ing43%9%9%40%Not-for-profit or public sector36%36%20%9%Professional services38%32%17%13%Retail or wholesaleExploring how to share pay ranges internally and externally in standardized approach beyond what is legally requiredWe comply with local laws but have no plans to broaden transparency beyond wh

98、at is requiredWe do not have a defined approachWe share pay ranges both internally and externally in a standardized way regardless of local law requirements37%34%16%13%ChemicalsOther key motivators driving pay transparency efforts include aligning with diversity,equity and inclusion(DEI)commitments(

99、53%),increasing employee satisfaction with fair pay(51%)and aligning with talent and reward philosophies(49%).When it comes to industries and compliance,non-profits are the standout in their tendency to share pay ranges beyond minimal compliance.Consumer goods companies are most likely to be explori

100、ng options beyond current mandates,while sectors like construction and engineering are more likely to stick to legal requirements only.Figure 9.Pay Transparency across industries Contents1234567891011Mercers 2024 Global Pay Transparency Survey Report21Source:Global Pay Transparency SurveyShared glob

101、ally Shared in some regions or countries Shared only where requiredNot sharedPay philosophy or strategyPay policiesTarget incentive awardsPay gaps,unadjusted(gender and/or ethnic)Pay equity commitments or gaps(adjusted pay gaps)Hiring pay ranges on job postingsEmployee pay ranges54%13%11%22%46%17%14

102、%22%44%16%13%27%7%7%32%54%9%8%27%56%9%14%37%40%13%12%16%58%58%15%18%9%Base pay only Base,short-and long-term incentives,and benefitsOther combination of pay elementsBase,and short-and long-term incentivesScope:Whats being shared?Around three-quarters of companies said they share their pay philosophy

103、 or strategy,pay policies and target incentive awards.More sensitive information like pay gaps,pay commitments and hiring pay ranges seem to be more often only shared when legally required.While most organizations limit sharing to base pay,a notable minority also include short and long-term incentiv

104、es and benefits.The majority of companies told us they do not share employee pay ranges(58%),adjusted pay equity commitments or gaps(56%),or unadjusted pay gaps(54%).A significant proportion(67%)do share their pay philosophy or strategy,in at least some regions,providing more contextual information

105、to employees and candidates.Figure 10.If your company shares employee pay range information,which of the following do you share?Figure 11.Sharing of all pay elementsContents1234567891011Mercers 2024 Global Pay Transparency Survey Report22Source:Global Pay Transparency SurveyNote:For Europe,our cuts

106、exclude UK&Ireland.USAPay equity8%UK andIreland11%Europe7%Canada12%Asia15%Global9%66%55%55%47%50%56%59%49%51%55%44%54%46%57%59%45%52%52%Reviewing current raw pay gapsConducting pay equity studiesMaking employee pay adjustments to align with the external market,internal pay compression and/or pay equ

107、ity considerationsIncreasing education on pay policies for employeesIncreasing resources to educate managers on making and communicating pay decisionsReviewing/reconsidering the discretion of managers/others in making compensation decisionsEngaging with leaders to educate and obtain buy-in on the ne

108、ed for increasing pay transparencyConducting employee research to understand employees perceptions of payNoneNoneUSAPeople and cultureUK and IrelandEuropeCanadaAsiaGlobal55%32%65%53%14%9%57%42%51%43%11%14%47%27%36%34%13%18%51%28%49%48%14%20%40%40%44%33%10%23%51%30%49%43%13%16%Taking action:Regional

109、approachesDifferent regions approach pay transparency improvements from different perspectives,within their own cultural and market contexts.For example,our inquiry found US companies are most commonly conducting pay equity studies and making pay adjustments.In Europe and the UK,companies are focusi

110、ng on reviewing raw pay gaps in addition to global pay equity studies.Asia,however,lags behind other regions in making pay adjustments,indicating a potential area for increased focus and improvement.Figure 12.Activities in support of transparencyContents1234567891011Mercers 2024 Global Pay Transpare

111、ncy Survey Report23Source:Global Pay Transparency SurveyYesNoCompliance is the only driverLocal/country level approach onlyRegional approach(i.e.,common standards across a region regardless of individual local country requirements)Global principles/min.standards w/variations across geographies based

112、 on local requirements or other factorsGlobal approach(i.e.,same information is shared in all locations)25%35%51%12%15%10%46%34%28%17%16%12%By contrast,those compliance-driven resisters seem to be taking a localized,distributed approach to pay transparency.More than half of companies whose sole driv

113、er is compliance favor a local or country level approach only.When compliance was one of many drivers,63%of companies take a global approach with 46%using a global-standards-with-variations approach.Respondents who do not view compliance as a key driver have a split between global standards with var

114、iations and a local/country approach.What exactly are they looking at changing?Globally,companies are taking actions such as assessing the competitiveness of pay practices(57%),developing and updating compensation structures and ranges(57%)and enhancing job architecture(52%).Only a small fraction(11

115、%)are taking no action on policies and practices,demonstrating a widespread recognition of the need for ongoing improvement.Many companies globally are taking actions related to workforce data.However,a quarter are not updating HRIS systems or working to ensure data reliability or access in those sy

116、stems.Figure 13.How is your organization approaching pay transparency legislation?Contents1234567891011Mercer Global Pay Transparency Report24Mercers 2024 Global Pay Transparency Survey Report24Source:Global Pay Transparency Survey Note:For Europe,our cuts exclude UK&Ireland.Asia 63%Canada 63%No act

117、ions 11%Policies and practicesAssessing the competitiveness of our pay levels and/or compensation structures57%Developing/updating compensation structures and ranges57%UK and Ireland 66%Documenting or updating pay policies46%UK and Ireland 58%Europe 47%Engaging with our employment attorneys on our p

118、olicies and procedures22%US 38%Workforce dataUpdating our HRIS technology to support with new policiesNone of the above38%25%Canada 43%Ensuring data access and reliability in HRIS systems49%UK and Ireland 55%Europe 51%Job architectureImplementing a standard approach to job evaluationEnhancing the jo

119、b architecture for greater consistency and alignment with work being performed36%52%Asia 48%UK and Ireland 58%Europe 54%None of the above23%Europe 16%Figure 14.Program,data and job architecture activities in support of pay transparencyContents1234567891011Mercers 2024 Global Pay Transparency Survey

120、Report25Currently sharing in some formPlanning to share in some form over the next two years Pay philosophy or strategyPay policiesTarget incentive awardsPay gaps,unadjusted(gender and/or ethnic)Pay equity commitments or gaps(adjusted pay gaps)Hiring pay ranges on job postingsEmployee pay ranges78%9

121、3%77%94%73%84%46%74%44%77%60%94%41%87%Source:Global Pay Transparency SurveyWhats ahead:Future strategyLooking ahead,companies plan to significantly increase the sharing of hiring pay ranges on job postings and employee pay ranges.Currently,60%share hiring pay ranges but this is expected to rise to 9

122、4%in the next two years.Similarly,the sharing of pay philosophy or strategy is set to increase from 78%to 93%and pay policies from 77%to 94%.However,plans to share raw and adjusted pay gaps remain more cautious,with 74%and 77%planning to share these,respectively,compared to 46%and 44%currently.By ta

123、king a proactive approach and aligning their strategies with global business goals,companies can navigate the complexities of pay transparency and achieve sustainable,equitable outcomes.Figure 15.Current vs.planned sharing of pay detailsContents1234567891011Mercers 2024 Global Pay Transparency Surve

124、y Report26Source:Global Pay Transparency SurveyLack of employee understanding of compensation programs and practices Maintaining understanding of global legislationLack of manager capabilitiesGetting leaders on boardLack of sufficient compensation infrastructureHRIS complexity to align with pay tran

125、sparency requirementsLack of budgetLack of capability or toolsNot applicableOtherNone of the above,we are not experiencing any challenges46%40%34%27%26%24%17%16%13%5%5%Challenges and opportunitiesMoving from compliance to competitive advantageThe journey towards pay transparency is fraught with chal

126、lenges but its also ripe with opportunities for those who navigate it early and effectively.As organizations strive to meet the growing demand for transparency,they have the unique chance to transform their compliance efforts into a competitive advantage.Understanding:The key challengeBy far the mos

127、t significant challenge the organizations we surveyed face is in understanding.This concern took two forms:employee understanding and organizational understanding.A lack of employee understanding of compensation programs and practices rose to the top of the list for almost half of organizations.Empl

128、oyees need clear,comprehensive information to understand how their pay is determined and how it aligns with the broader market without that context they may feel the process is less than fair and equitable.Figure 16.Which of the following challenges related to pay transparency are companies facing?C

129、ontents1234567891011Mercers 2024 Global Pay Transparency Survey Report27Review your compensation foundation for the following:Are jobs clearly defined?Is pay aligned with your pay philosophy and market?Do you have an oversight and an HRIS/data management system containing all relevant pay and benefi

130、ts information?Have you analyzed your organizations pay equity and pay gap reporting risk areas?Are managers equipped to communicate pay ranges?Address key questions around where youre headed:What will you share(e.g.,what elements of pay benefits,total rewards)?Who will you share it with all employe

131、es,managers only,certain segments?How will you share it?Assess your readinessSet your destinationPlan for the journeyAddress gaps and risks in your current environment:Job structures Gaps in pay equity and competitiveness and alignment of pay equity to support pay gap disclosure Talent acquisition a

132、nd employee communication technology Manager education and resources Pay data managementGo live!Deploy internally and externally:Execute on your communication strategy Launch branded communication and messages Deploy communication playbooks Educate managers and employeesShare your storyMeasure the i

133、mpactMeasure success through data and insights:Applicants per opening,time to fill,offer acceptance rates Candidate surveys Employee engagement and perceptions Statistical modeling around turnover and other outcomes Unadjusted and adjusted pay gapsAdditionally,maintaining an up-to-date understanding

134、 of global legislation is a pressing concern for 40%of organizations.Keeping pace with changing regulations and ensuring compliance across multiple jurisdictions requires continuous effort and education.Moving beyond compliance:Sustained effortsMoving beyond mere compliance to embrace pay transparen

135、cy as a sustainable practice is also crucial and this is where organizations are most likely to see opportunities.When organizations integrate transparency into their ongoing operations,they can ensure it is not just a one-time initiative but a continuous commitment.By doing so,companies can build t

136、rust and engagement with their employees,creating a more equitable and inclusive workplace.At Mercer,we use a five-step playbook for organizations to guide the way on the path to pay transparency and help them to take advantage of the competitive edge and opportunities it offers.Figure 17.Five step

137、playbook for pay transparency Contents1234567891011Mercers 2024 Global Pay Transparency Survey Report281.Assess your readiness:To successfully navigate pay transparency,organizations must first understand where they are.This involves a thorough review of the rewards foundation.This foundational asse

138、ssment is critical for identifying gaps and areas that need improvement.2.Set your destination:Setting clear objectives is the next step.Organizations must decide how pay transparency will be communicated.Defining these parameters helps in creating a structured and consistent approach to pay transpa

139、rency.3.Plan for the journey:Planning for the journey involves risk management and addressing the gaps in current compensation structures.This is a structural exercise to ensure your foundation is solid and there are no surprises in your data before making it available for scrutiny.4.Share your stor

140、y:Going live with pay transparency requires a well-executed communication strategy.This step is essential for ensuring that the changes can be best understood,embraced and championed across all levels of the organization.5.Measure the impact:Finally,measuring the impact of pay transparency efforts t

141、hrough key metrics.Pay transparency isnt set-it and forget-it but an ongoing process refining and improving transparency practices over time.Research8 has shown that companies are three times more likely to fully accomplish transformation success if they track transformation-specific metrics.Content

142、s1234567891011Mercer Global Pay Transparency Report29Mercers 2024 Global Pay Transparency Survey Report29Seize the momentPutting a pay transparency strategy into actionOne clear message comes through in this research.The time to act on pay transparency is now.As legislation continues to evolve and t

143、ake effect,addressing pay gaps and establishing clear job architecture will become increasingly critical.Organizations that prioritize these efforts today will mitigate risks and position themselves for future success.Employees and candidates wont give their current or prospective employers any cred

144、it for catching up.For tailored guidance and support,reach out to Mercer experts worldwide.By leveraging our insights and expertise,companies can turn compliance into a competitive advantage,fostering a fair and transparent workplace that attracts and retains top talent.Contents1234567891011Contents

145、1234567891011Mercer Global Pay Transparency Report30Mercers 2024 Global Pay Transparency Survey Report30AppendixContributorsGordon Frost,Global Rewards Solution Leader Lea Lonsted,Pay Equity&DEI Leader,Europe&UK Lauren Mason,Career Workforce Solutions Leader,US Manisha Mehta,Regional Industry Lead,A

146、PAC Lucye Provera,Pay Equity&DEI Leader Europe&UK Tauseef Rahman,Global Pay Transparency Solutions Leader Endnotes1 European Union Pay Transparency Directive2 Monster The Future Of Work,2022 3 Visier Pay Transparency,20224 Mercer 2024 Global Talent Trends5 Mercer Fair pay is the apex of employee experience and total rewards6 Mercer 2023-2024 Inside Employees Minds7 Oliver Wyman Transformative Moments In A Time Of Permacrisis8 Oliver Wyman How Executives Can Drive Growth Through TransformationContents12345678910116014780A-CR 2024 Mercer LLC.All rights reserved.