Findings of a new WTW survey indicate that although increased disclosures could create additional issues for employers, some companies saw benefits to disclosure as well.
According to the WTW’s 2022 Pay Clarity Survey:
- 62% of companies are considering disclosing pay range data to job seekers even when not required to do so, and 17% currently disclose pay range information throughout the U.S.
- 58% indicated they will put forth a competitive hiring range while 48% will show the full salary range for the job. While this will create additional inquiries from both employees and candidates, some organizations saw a benefit of increased applications for job openings.
Beyond disclosing pay on job postings, there is a growing trend of companies publicly committing to pay equity and communicating any pay gaps within their workforce. One-third of U.S. companies already release information about how they address pay equity, with 53% expecting to do so in the future. WTW discusses the “clear trend among employers around the globe publicly committing to fair pay” in their recent news release and infographic, noting employers “expect that [a] level of transparency will likely become the norm as external stakeholders demand more clarity and visibility into companies’ pay management practices.”
Despite this push, 31% of firms report they are not prepared for the added transparency for reasons such as unclear job structure, administrative complexity, and employee reactions.
The bottom line: Recent legislation combined with shareholder pressure and employee expectations are causing many employers to re-think their position around pay transparency.
