Only 19% of companies feel ready for pay transparency, with compliance driving the push
Only 19 percent of global employers say they are ready for pay transparency, despite growing regulatory demands and shifting expectations around fairness and equity, according to Aon’s 2025 Global Pay Transparency Study.
The study, based on responses from more than 1,400 organisations across over 40 countries, shows that regulatory compliance remains the main driver of transparency initiatives.
Aon found that 60 percent of organisations apply transparency requirements only in locations where disclosure is legally required, rather than adopting a broader or unified approach.
“Pay transparency is no longer a buzzword. It’s a baseline expectation from employees and a regulatory imperative across an increasing number of jurisdictions,” said Lisa Stevens, Aon’s chief administrative officer.
Stevens warned that those failing to act risk compliance penalties and challenges in attracting, retaining, and engaging talent.
In North America, the number of employers saying they are “not ready” dropped to 16 percent, down from 18 percent in Aon’s 2024 study. But that readiness does not appear uniform.
Forty-eight percent of organisations in APAC, 40 percent in LATAM, and 26 percent in EMEA still report they are “not ready” for pay transparency.
The findings highlight a cautious, compliance-driven mindset.
Regulatory compliance was cited as the top motivator globally, ranking 40 percent higher than other factors such as improving the employee value proposition or aligning with corporate values.
Communication and education gaps persist. Only 7 percent of organisations believe employees fully understand their pay policies, and just 9 percent say managers are equipped to discuss pay effectively.
While 69 percent of organisations publish salary bands when recruiting, only 21 percent do so for all job postings.
“Employees are navigating economic uncertainty and growing concerns about fairness,” said Kelly Voss, head of rewards and career advisory for North America.
She added that “clear, consistent communication and manager training are critical to transparency efforts.”
Without those elements, she warned, even well-intentioned strategies risk falling short.
The study found that only 26 percent of companies had conducted a pay equity analysis within the last 12 to 18 months.
Even though pay transparency is often positioned as a lever to drive equity, most organisations remain focused on legal obligations rather than deeper structural change.
Still, 71 percent of organisations reported improved readiness over the past year.
With the EU Pay Transparency Directive set to take effect in 2026, Aon advised employers to move beyond tactical compliance.
“Pay transparency is here to stay,” said Voss. “Organisations that treat it as a business imperative, not just a legal hurdle, will be better positioned to build engaged, resilient workforces.”
