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5 Pay Transparency Facts for International Equal Pay Day

September 18, 2024

By Andrew Grissom

Across the world, the gender pay gap persists – a fact codified through International Equal Pay Day, which marks the point in the year when women’s earnings finally catch up to men’s earnings the previous year.1 Longstanding biases, stereotypes about women’s work, and occupational segregation all contribute to the gap.2

Let’s face the facts: the gap is unfair, systemic, and holding us all back from economic progress. Pay transparency is one powerful tool to finally address inequities and close the gap.

  1. Pay transparency reduces the pay gap. Research from across the world has linked pay transparency with reducing pay inequities, or in some cases eliminating them entirely, across gender, ethnicity, sexual orientation, and other dimensions of diversity. 3
  2. Employees want pay transparency. In fact, most employees would take a job with a different company if they had greater pay transparency, even if the salary was the same as their current salary.4
  3. Twenty-eight countries across the world have adopted laws requiring employers to report pay in some form. In less than two years, the EU Pay Transparency Directive will add an additional 14 countries to this list and will alter the existing reporting requirements in 13 countries.5 Globally, pay transparency is not going away.
  4. In the US, about one in three employees will be covered by pay transparency laws by 2025.6 These laws, though varying in scope, are proliferating in states, cities, and counties, requiring employers to disclose salary ranges to employees.
  5. Pay transparency offers numerous business benefits, including increased employee trust, engagement, and a positive work environment.7 Adopting pay transparency practices can also offer companies a competitive edge and save on recruitment costs. 8 Leading companies already know the power of transparency to their businesses: 93% of our Catalyst CEO Champions For Change organizations have conducted extensive pay equity reviews in the past three years.9

Is your organization practicing pay transparency? Read how you can get started implementing pay transparency in your organization today.

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ENDNOTES

  1. International Equal Pay Day. United Nations
  2. The gender pay gap. (2024, April 15). International Labour Organization.
  3. Obloj, T. & Zenger, T. (2023, February 8). Research: The complicated effects of pay transparency. Harvard Business Review.
  4. Bergeron, P. (2022, October 20). Companies embracing pay transparency gain a market advantage. SHRM.
  5. Hendrickson, C., Palmiter, A., & Vidales, J. (2024). Global pay reporting laws calendar. Syndio.
  6. Liu, J. (2024, June 4). More states are requiring companies to list salary ranges on job ads—here’s where. CNBC.
  7. Lam, L., Hayden Cheng, B., Bamberger, P., & Wong, M. (2022, August 12). Research: The unintendend consequences of pay transparency. Harvard Business Review.
  8. Maurer, R. (2022, December 12). Study: Pay transparency reduces recruiting costs. SHRM
  9. This CEO community is keeping and advancing their best talent. Are you?. (2024). Catalyst.
  10. Obloj, T. & Zenger, T. (2023, February 8). Research: The complicated effects of pay transparency. Harvard Business Review.
  11. Bergeron, P. (2022, October 20). Companies embracing pay transparency gain a market advantage. SHRM.
  12. Hendrickson, C., Palmiter, A., & Vidales, J. (2024). Global pay reporting laws calendar. Syndio.
  13. Liu, J. (2024, June 4). More states are requiring companies to list salary ranges on job ads—here’s where. CNBC.
  14. Lam, L., Hayden Cheng, B., Bamberger, P., & Wong, M. (2022, August 12). Research: The unintendend consequences of pay transparency. Harvard Business Review.
  15. Maurer, R. (2022, December 12). Study: Pay transparency reduces recruiting costs. SHRM.
Andrew Grissom

Director, Community Growth

Andrew Grissom joined Catalyst in 2016 as an associate. As Director of Community Growth, Andrew creates and oversees the implementation of initiatives and programs that encourage community involvement, participation, and dialogue. Andrew leads research and community engagement activities for the Catalyst CEO Champions For Change initiative and is a subject matter expert on DEI measurement, self-identification, pay equity, pay transparency, employee resource groups (ERGs), gender partnership, and inclusive leadership. Previously, Andrew co-led Catalyst Practices, a research series that profiles leading-edge organizational DEI strategies, initiatives, and programs. He has served on numerous cross-functional teams, including the Catalyst Award Evaluation Committee. Before joining Catalyst, Andrew was a librarian at the Paul Barret, Jr. Library at Rhodes College. He received his Master of Science in Information Sciences from the University of Tennessee, Knoxville, and his Bachelor of Arts in Religious Studies from Rhodes College. He served as President of the Advisory Board for the School of Information Sciences at the University of Tennessee, Knoxville from 2022-2023.