Core Insights - US companies are increasingly adopting pay transparency despite regulatory complexities introduced by recent executive orders and EU directives [1][2] - The 2025 Pay Transparency Survey by WTW indicates that 82% of US companies are communicating or planning to communicate individual pay ranges to employees, and 79% are doing the same for external candidates [2] Regulatory and Cultural Drivers - The shift towards pay transparency is driven by growing regulatory requirements (72%), company values and culture (44%), and employee expectations (41%) [2] - One-third (32%) of organizations have publicly shared a narrative on pay equity, with 20% doing so for pay transparency [3] Current Practices and Challenges - Less than half of employers share how individual base pay is determined, and even fewer convey how pay ranges are designed and managed [4] - Organizations anticipate that sharing pay ranges will lead to more questions about compensation from both managers (70%) and employees (68%) [5] Education and Metrics - Currently, organizations are more likely to educate senior leaders and managers on pay than employees, but they plan to increase employee education in the future [5] - Just over half (56%) of companies use metrics to measure the impact of pay transparency, with the adjusted gender pay gap being the most prevalent metric [6] Technology Adoption - Despite interest in pay transparency, most employers are not utilizing AI technology to support their pay programs, with only 15% planning to use AI for communication of pay information [7] - Barriers to AI adoption include data privacy concerns, compliance risks, and integration challenges with HR systems [7] Global Approach and Communication - Organizations are planning a global approach to pay program communication, necessitating a clear and consistent disclosure strategy [8] - Building employee trust and educating stakeholders are critical components of effective communication regarding pay transparency [8] Survey Details - The 2025 Pay Transparency Survey was conducted in June 2025, with 388 respondents from the US and 1,915 globally [9]