Global regulations driving norms in US pay transparency practices, most employers plan to share pay ranges with employees

Rhea-AI Summary

WTW (NASDAQ: WTW) released its 2025 Pay Transparency Survey revealing significant shifts in US corporate pay transparency practices. The survey found that 82% of US companies are either implementing or considering sharing individual pay ranges with employees, while 79% plan similar transparency with external candidates.

Key drivers include regulatory requirements (72%), company values (44%), and employee expectations (41%). Currently, 32% of organizations have publicly shared pay equity commitments, with 72% adopting a global perspective. However, challenges remain as companies anticipate increased compensation questions from managers (70%) and employees (68%), along with more pay negotiations (53%).

The survey also revealed limited AI adoption in pay programs, with only 15% planning to use AI for pay information communication and 56% of companies using metrics to measure pay transparency impact.

Positive

• 82% of US companies moving towards pay range transparency with employees
• 72% of companies with pay equity narratives have adopted a global perspective
• 56% of companies actively measuring pay transparency impact through metrics
• Growing proactive adoption of transparency regardless of legal mandates

Negative

• Less than half of employers share how individual base pay is determined
• 70% expect significant increase in compensation questions from managers
• Low AI adoption rates (11-17%) for pay program management
• Concerns about managers' ability to explain compensation programs

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NEW YORK, Aug. 11, 2025 (GLOBE NEWSWIRE) -- US companies are increasingly embracing pay transparency, even as regulatory complexities introduced by the U.S. Administration 2025 Executive Orders and the EU Pay Transparency present new challenges. This is according to the 2025 Pay Transparency Survey by WTW (NASDAQ: WTW), a leading global advisory, broking, and solutions company.

The survey found 82% of US companies are either communicating, planning or considering communicating individual pay ranges with employees and 79% are doing the same with external candidates, regardless of legal mandates. This shift is being driven by a combination of factors: growing regulatory requirements (72%), company values and culture (44%) and employee expectations (41%).

Navigating the complexities of US and international directives, many organizations are taking proactive steps to provide transparency around pay equity. According to the survey, one-third (32%) of organizations have publicly shared a narrative or commitment on pay equity, and 20% have done so for pay transparency. Another one-third are actively planning or considering doing similar disclosures. Among those that have issued a pay equity narrative, nearly three-quarters (72%) have adopted a global perspective, addressing pay equity across the entire organization, although they often allow for local or regional differences within this global narrative.

Despite this progress, there are improvements to be made. Less than half of employers share how individual base pay is determined and progresses. Even fewer convey how pay ranges are designed and managed and the employee’s position within the pay range.

Most organizations believe that sharing pay ranges with employees will lead to significantly more questions about compensation from managers (70%), more questions about compensation from employees (68%) and more pay negotiations (53%). Also, concerns about managers’ ability to explain compensation programs and possible employee reactions are the most commonly cited factors holding back pay program communication. However, the survey found that organizations are currently more likely to educate senior leaders and managers on pay than employees but are planning for more employee education in the future.

“We’re witnessing a broader cultural shift take place around communicating pay, even though many US employers are not directly impacted by the EU Pay Transparency Directive,” said Lindsay Wiggins, North America Pay Equity co-leader. “Companies recognize that increased pay transparency is becoming a new reality that can support their employer brand and build competitive advantage in the talent market. To prepare for this, there are some essential fundamentals that companies need to get right, including robust job and rewards structures, and objective HR policies and processes to ensure the delivery of equal pay. In addition, it’s important for companies to look at their future ambition for pay programs and define how transparent they aspire to be.”

The survey also found that just more than half (56%) of companies use metrics to measure the impact of pay transparency. The most prevalent metrics used are adjusted gender pay gap, questions received from managers and employees, and impact on employee retention.

Despite growing interest, most employers are not utilizing AI technology to support their pay programs. Only a small percentage are planning on using AI to support pay information communication (15%), market compensation research (17%) or pay gap identification (11%). Barriers to adoption include data privacy and compliance risks, oversight in AI-driven decisions and integration challenges with HR systems.

“With many organizations planning to take a global approach to their pay program communication, organizations need a clear, consistent and well-documented approach to disclosure to ensure accurate data is shared with candidates and employees,” said Jill Havely, head of global community excellence, Employee Experience. “Educating relevant stakeholders and building employee trust is paramount in this process, as well as leveraging relevant technologies to support a clear and transparent communication process.”

About the Survey

WTW’s 2025 Pay Transparency Survey was conducted in June 2025. In the US, 388 respondents completed the survey. Globally, 1,915 respondents completed the survey.

About WTW

At WTW (NASDAQ: WTW), we provide data-driven, insight-led solutions in the areas of people, risk and capital. Leveraging the global view and local expertise of our colleagues serving 140 countries and markets, we help organizations sharpen their strategy, enhance organizational resilience, motivate their workforce and maximize performance.

Working shoulder to shoulder with our clients, we uncover opportunities for sustainable success—and provide perspective that moves you. Learn more at wtwco.com.

Media Contacts

Ileana Feoli
ileana.feoli@wtwco.com

Stacy Bronstein
sbronstein@meritcomms.com

FAQ

What percentage of US companies plan to share pay ranges according to WTW's 2025 survey?

According to WTW's survey, 82% of US companies are either already communicating, planning, or considering communicating individual pay ranges with employees.

What are the main drivers of pay transparency adoption in 2025?

The main drivers are regulatory requirements (72%), company values and culture (44%), and employee expectations (41%).

How many companies are using metrics to measure pay transparency impact?

56% of companies use metrics to measure pay transparency impact, focusing on adjusted gender pay gap, questions received from managers and employees, and impact on employee retention.

What percentage of companies are planning to use AI for pay transparency?

Only 15% of companies plan to use AI for pay information communication, 17% for market compensation research, and 11% for pay gap identification.

What are the main challenges companies face with pay transparency according to WTW?

Key challenges include anticipated increase in compensation questions from managers (70%) and employees (68%), more pay negotiations (53%), and concerns about managers' ability to explain compensation programs.