Is Pay Transparency The New Norm?

US companies are increasingly considering communicating pay ranges with employees regardless of legal mandate, according to the 2025 Pay Transparency Survey released by WTW (Willis Tower Watson).

The June 2025 survey — which includes 388 respondents from the US and 1,915 globally — found that 82% of US companies already communicate pay ranges with employees or are considering or planning to. In addition, 79% communicate pay ranges with external candidates.

These results come even as federal regulations have eased pay transparency requirements. The US federal government earlier this year rescinded an executive order that would have required pay transparency for federal job postings.

In contrast, the European Union’s pay transparency directive has created a more rigorous legal framework that companies must now navigate.

Despite these changes, 72% of companies surveyed say that they have considered or have started communicating pay ranges to employees and candidates because of this regulatory framework. In addition, 44% cited company values for this change and 41% pointed to employee expectations.

“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,” Lindsay Wiggins, WTW North America pay equity co-leader, said in a press release.

“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.”

Some companies are taking a proactive approach to the regulatory changes, with nearly one-third of organizations sharing a commitment to pay equity, and one-fifth doing so for pay transparency. Another third of companies are considering similar disclosures.

Of those that have issued a pay equity narrative, nearly three-quarters adopted a global perspective, addressing the issue across the organization, albeit with some local or regional caveats.

Most organizations understand that pay transparency will force them to contend with more questions and hurdles. Seventy percent of surveyed companies said these changes will lead to more questions about compensation from managers and 68% expect more questions from employees. In addition, more than half expect more pay negotiations. Yet the survey also found that organizations currently inform senior leaders and managers on pay more so than employees but plan on more employee education in the future.

Concerns about managers’ ability to explain compensation programs and possible employee reactions are two of the most cited factors holding back programs from implementing pay transparency.

Fifty-six percent of companies say they already use metrics to measure the impact of pay transparency. These include metrics of adjusted gender pay gap, questions received from managers and employees, and impact on employee retention.

“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,” Jill Havely, WTW head of global community excellence, employee experience, said in a press release.

“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.”