Pay Transparency: the Latest Industry Insights

Hi,

October was a busy conference season for me, with lots of travel! I wrote about

• my first thoughts on SuccessConnect in Lisbon
• my takeaways from Unleash in Paris

I have one more event scheduled: the Zellis User Summit on November 19 in London. Join me!

I finished my travels yesterday with a keynote on the latest AI innovations in HR. If you are looking to arrange a keynote or workshop for an HR audience, please reach out. I look forward to our conversation!

I am sharing two new research reports on Pay Transparency. I think you will find it interesting to take a look at what other companies are doing. Both reports are available as free download without the need to register or leave your email. I love it when companies don't solicit your data!

Pay Transparency is Here - Are You Ready?

When it comes to pay transparency, deadlines are rapidly approaching - and organizations need to act fast to get prepared.

The new 2025 Workplace Equity Trends Report from Syndio shows a rapidly shifting landscape, driven by a wave of new legislative requirements, most obviously the EU Pay Transparency Directive. You already know that this law will require companies to disclose pay data, explain pay gaps, and take action to close unjustified disparities.

The report found that nearly half (47%) of companies with major European operations are either extremely or moderately concerned about the impact of the EU Directive. With the first reporting deadline in 2027 (based on 2026 payroll data), the 2025 compensation cycle represents the last chance for many organizations to get their houses in order.

But these challenges are not limited to the EU. The report also shows that most companies - even the most forward-looking - feel unprepared for the full scope of pay and career transparency that is now being demanded - not only by the law but also by employees.

Only 1 in 8 organizations say they are fully prepared to explain how and why they pay and advance employees. The root causes? Inconsistent pay decisions by people managers (24% regularly deviate from pay policies), and outdated "set it and forget it" compensation programs that can't keep up with changing dynamics in the market that impact pay.

The good news is that leading companies are stepping up their game when it comes to pay equity. They're analyzing pay more frequently (53% of leaders do it more often than annually, vs. just 15% of laggards), and are more likely to have budgets dedicated to addressing any gaps they uncover.

The "Transparency Leaders" are also getting creative, incorporating long-term incentives into their pay equity analyses and leveraging technology to automate the process and gain deeper insights. The report cites a Novo Insights study that found a 41% increase in ROI and effectiveness for organizations using pay equity software versus manual spreadsheet-based approaches. (I'll write more on technology in an upcoming newsletter!)

The report also found that organizations remain committed to workplace equity, even in the face of external discourse challenging DEI initiatives. Over two-thirds believe these programs will remain a priority in the next two years.

The path forward is clear: organizations need to get ahead of the curve on pay transparency, whether driven by legislation or employee expectations. This means taking a hard look at how you make pay and advancement decisions, arming people managers with the right guardrails and training, and deploying more dynamic compensation strategies.

The companies that get this right will not only ensure compliance, but will also be better positioned to attract and retain top talent in an increasingly competitive landscape. The future of work demands pay transparency - the only question is whether your organization will be leading the charge or playing catch-up. (Full disclosure: I am a strategic board advisor to Syndio.)

But for CHRO's, the Gender Pay Gap Persists

The latest Compensation report from HRO Today paints a complex picture when it comes to gender pay equity in HR leadership. While there are some signs of progress, the data also reveals concerning disparities that make it clear there is still work to be done.

The report found that on average, female CHROs within the Fortune 1000 earn more than their male counterparts. You could say that's encouraging and a testament to the value organizations are placing on female HR leadership.

However, the story takes a different turn as we look at the top of the corporate ladder. Inside the Fortune 500 and beyond, the report uncovered that male CHROs on average earn more than women in the same role. In fact, the pay gap widens significantly - up to 34%! - as companies rise higher in the Fortune rankings.

I find this a troubling picture. Even as women are making strides in ascending to the C-suite, pay inequities continue to persist, especially at the very top of the largest companies. It's a stark reminder that the gender pay gap remains a frustratingly stubborn challenge.

But the report wasn't all bad news. It found that the majority (57%) of senior HR executives believe their compensation is comparable to other C-suite roles. That number rises to 71% for companies with 500 or more employees.

This suggests that HR leaders feel they are being valued and rewarded in a way that's equal to their executive peers. It's a sign that organizations are recognizing the critical strategic importance of the CHRO role. What remains to be seen, if that feeling is supported by the facts (the report isn't clear on that).

The report also revealed that only about one-third (36%) of HR practitioners feel their departments are compensated fairly compared to other functions within their organizations. The majority - a full 64% - do not believe their teams are getting their fair share.

This points to an ongoing problem, where the HR community feels undervalued and underpaid relative to other parts of the business.

So where does this leave us? The report paints a mixed picture - both encouraging progress and concerning gaps. As organizations strive for true pay equity, greater transparency will be key. The mandatory pay reporting requirements that are being rolled out, will show if the differences are real or perceived.

Hope you enjoy reading both reports,

Have a great day, Anita

Do you have a question? Leave a comment or, if you want to remain anonymous, send me a DM! I'll answer them in an upcoming edition.

• Send me your Pay Transparency question. I'll keep it confidential!
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via hrtechradar.com