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Seventy-Five Percent of U.S. Employers Are Unprepared for Pay Transparency Laws, Aon Reports

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Aon's 2024 North America Pay Transparency Readiness Study reveals that 75% of employers are not prepared for upcoming pay transparency laws. These regulations will affect 14 U.S. states and four Canadian provinces by 2025, and all EU countries by 2026.

Key findings from the study of 626 U.S. employers show that only 51% have conducted independent pay equity analyses, with 84% of those identifying pay gaps. However, just 34% of employers who found inequities have allocated funds to address them. Only 18% of employers feel ready for pay transparency, with retail & e-commerce showing the highest readiness at 33%.

The study also reveals that 63% of employers don't communicate salary ranges to employees, though 81% publish ranges in job postings. The predicted average salary increase budget for 2025 is 4.6%, similar to 2024's 4.7%. Employee turnover in the first half of 2024 was 20.7%, with 11.8% leaving voluntarily.

Lo Studio sulla Preparazione alla Trasparenza Salariale in Nord America di Aon per il 2024 rivela che il 75% dei datori di lavoro non è preparato per le imminenti leggi sulla trasparenza salariale. Queste normative influenzeranno 14 stati americani e quattro province canadesi entro il 2025, e tutti i paesi dell'UE entro il 2026.

I risultati chiave dello studio condotto su 626 datori di lavoro statunitensi mostrano che solo il 51% ha effettuato analisi autonome sull'equità salariale, e l'84% di questi ha identificato delle disparità retributive. Tuttavia, solo il 34% dei datori di lavoro che hanno trovato inequità ha stanziato fondi per affrontarle. Solo il 18% dei datori di lavoro si sente pronto per la trasparenza salariale, con il settore retail e e-commerce che mostra la massima prontezza al 33%.

Lo studio rivela anche che il 63% dei datori di lavoro non comunica gli intervalli salariali ai dipendenti, anche se l'81% pubblica questi intervalli negli annunci di lavoro. Il budget previsto per l'aumento medio degli stipendi nel 2025 è del 4,6%, simile al 4,7% del 2024. Il turnover dei dipendenti nella prima metà del 2024 è stato del 20,7%, con l'11,8% che ha lasciato volontariamente.

El Estudio de Preparación para la Transparencia Salarial en América del Norte de Aon para 2024 revela que el 75% de los empleadores no está preparado para las próximas leyes de transparencia salarial. Estas regulaciones afectarán a 14 estados de EE. UU. y cuatro provincias canadienses para 2025, y a todos los países de la UE para 2026.

Los hallazgos clave del estudio de 626 empleadores estadounidenses muestran que solo el 51% ha realizado análisis independientes de equidad salarial, y el 84% de ellos ha identificado diferencias salariales. Sin embargo, solo el 34% de los empleadores que encontraron inequidades ha asignado fondos para abordarlas. Solo el 18% de los empleadores se siente listo para la transparencia salarial, siendo el sector minorista y de comercio electrónico el que muestra la mayor preparación con un 33%.

El estudio también revela que el 63% de los empleadores no comunica los rangos salariales a los empleados, aunque el 81% publica estos rangos en los anuncios de trabajo. Se prevé que el presupuesto promedio de aumento salarial para 2025 sea del 4.6%, similar al 4.7% de 2024. La rotación de empleados en la primera mitad de 2024 fue del 20.7%, con un 11.8% dejando el trabajo voluntariamente.

Aon의 2024년 북미 급여 투명성 준비 상태 연구 결과에 따르면, 75%의 고용주가 다가오는 급여 투명성 법규에 준비가 되어 있지 않습니다. 이러한 규정은 2025년까지 14개 미국 주와 4개 캐나다 주에 영향을 미치며, 2026년까지 모든 EU 국가에 적용될 것입니다.

626명의 미국 고용주를 대상으로 한 연구의 주요 결과에 따르면, 단지 51%만이 독립적인 급여 공정성 분석을 실시했으며, 이 중 84%가 급여 격차를 확인했습니다. 그러나 불공정성을 발견한 고용주의 34%만이 이를 해결하기 위해 자금을 할당했습니다. 급여 투명성에 대해 준비가 되었다고 느끼는 고용주는 겨우 18%에 불과하며, 소매 및 전자 상거래 분야가 33%로 가장 높은 준비 상태를 보입니다.

또한, 연구에 따르면 고용주의 63%가 직원들에게 급여 범위를 전달하지 않지만, 81%는 채용 공고에 급여 범위를 게시합니다. 2025년 평균 급여 인상 예산은 4.6%로, 2024년의 4.7%와 비슷합니다. 2024년 상반기 직원 이직률은 20.7%였으며, 그 중 11.8%가 자발적으로 퇴사했습니다.

Étude de préparation à la transparence salariale d'Aon pour l'Amérique du Nord 2024 révèle que 75 % des employeurs ne sont pas prêts pour les futures lois sur la transparence salariale. Ces réglementations affecteront 14 États américains et quatre provinces canadiennes d'ici 2025, et tous les pays de l'UE d'ici 2026.

Les principales conclusions de l'étude menée auprès de 626 employeurs américains montrent que seuls 51 % ont effectué des analyses indépendantes sur l'équité salariale, et parmi ceux-ci, 84 % ont identifié des écarts de salaire. Cependant, seulement 34 % des employeurs qui ont trouvé des inégalités ont alloué des fonds pour les traiter. Seulement 18 % des employeurs se considèrent prêts pour la transparence salariale, avec le secteur du commerce de détail et de l'e-commerce affichant la plus grande préparation à 33 %.

L'étude révèle également que 63 % des employeurs ne communiquent pas les fourchettes de salaire aux employés, bien que 81 % publient ces fourchettes dans les offres d'emploi. Le budget prévisionnel pour l'augmentation moyenne des salaires en 2025 est de 4,6 %, similaire à celui de 2024 qui était de 4,7 %. Le taux de rotation des employés au cours du premier semestre 2024 était de 20,7 %, dont 11,8 % ont quitté volontairement.

Aons Studie zur Bereitschaft zur Gehaltstransparenz in Nordamerika 2024 zeigt, dass 75% der Arbeitgeber nicht auf die bevorstehenden Gesetze zur Gehaltstransparenz vorbereitet sind. Diese Vorschriften werden bis 2025 14 US-Bundesstaaten und vier kanadische Provinzen betreffen und bis 2026 alle EU-Länder.

Wichtige Erkenntnisse aus der Studie von 626 US-Arbeitgebern zeigen, dass nur 51% unabhängige Gehaltsanalysen zur Gleichstellung durchgeführt haben, wobei 84% davon Gehaltsunterschiede festgestellt haben. Dennoch haben nur 34% der Arbeitgeber, die Ungleichheiten festgestellt haben, Mittel zur Behebung dieser Probleme bereitgestellt. Nur 18% der Arbeitgeber fühlen sich bereit für die Gehaltstransparenz, wobei der Einzelhandel und der E-Commerce mit 33% die höchste Bereitschaft aufweisen.

Die Studie zeigt auch, dass 63% der Arbeitgeber den Mitarbeitern keine Gehaltsbandbreiten mitteilen, obwohl 81% diese Bandbreiten in Stellenangeboten veröffentlichen. Das prognostizierte durchschnittliche Budget für Gehaltserhöhungen im Jahr 2025 beträgt 4,6%, ähnlich wie 2024 mit 4,7%. Die Fluktuationsrate der Mitarbeiter in der ersten Hälfte des Jahres 2024 betrug 20,7%, wobei 11,8% freiwillig ausschieden.

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New regulations in the U.S., Canada and Europe require companies to be more transparent about their pay practices

CHICAGO, Dec. 5, 2024 /PRNewswire/ -- Aon plc (NYSE: AON), a leading global professional services firm, today released results from its 2024 North America Pay Transparency Readiness Study, revealing that 75% of employers are not ready for pay transparency laws, which are currently or will be in effect in 14 U.S. states and four provinces in Canada by the end of 2025 and in all EU countries by the end of 2026.

Pay transparency laws aim to close the gender wage gap, and the study highlights the challenges in reaching that goal. The study, which includes survey results from 626 U.S. employers with employees based both inside and outside North America, shows only 51% of employers have conducted an independent pay equity analysis. Of those that conducted this analysis, 84% identified pay equity gaps and disparities. Only 34% of those employers that found pay inequities have added additional funding to correct them.

"The rise of pay transparency and pay equity initiatives reflects a broader cultural shift, particularly among younger employees," said Brooke Green, Head of Talent Solutions for North America at Aon. "What was once considered impolite to publish salary information has increasingly been recognized as a practice that reinforces and exacerbates pay gaps. Employers who align with these new regulations sooner rather than later will be better positioned to address wage disparities, promote fairness and empower employees to make informed career decisions."

Additional findings from the report include:

  • 18% of employers say they feel ready for pay transparency.
    • The industries with higher levels of readiness include: retail & e-commerce (33%); financial institutions (21%); manufacturing (20%); and professional & business services (20%).
  • 63% of employers do not currently communicate salary ranges to their employees.
    • Of the 37% that communicate salary ranges, 61% only do so where required by law, 23% throughout the U.S. and 16% globally.
  • 81% of employers publish salary ranges on job postings, indicating a gap in how employers communicate with their employees and prospective talent.
    • Of these 81%, 34% publish a portion of the salary range where legally required, 20% list the full salary range by location, 18% provide a portion of salary range by location and 10% publish the full salary range by location.
  • 69% of employers have not implemented a pay transparency communication strategy.

"More than half the U.S. population lives in places with some form of regulation, and more than 60% of Europe will be covered by the EU Pay Directive," said Kelly Voss, head of rewards and career advisory, North America at Aon. "This, coupled with the growing compliance concerns and the social movement toward pay transparency, is spurring more employers to act and become more transparent with their total rewards strategies. Those organizations that are out in front will have a more compelling employee value proposition. This will not only increase engagement among their current workforce but will be more attractive to prospective employees."   

To support employers in navigating pay transparency and developing effective total rewards strategies, Aon recently announced new features to its integrated Radford McLagan Compensation Database. These enhancements expand the platform's data and analytics capabilities, empowering HR and total rewards leaders to benchmark compensation, evaluate plan design practices and access actionable talent insights to drive better decision-making.

"To keep pace, companies must have access to data and intelligence to properly and consistently benchmark, evaluate and define jobs around the world," Voss added. "This intelligence readies organizations for pay transparency and helps them to both remain competitive in local, regional and global job markets as well as differentiate themselves among their competitors."

As pay transparency rises in importance, employers are making plans for 2025 employee raises, portions of which may be used by some companies to address pay inequities. Average overall salary increase budget* for 2025 is predicted to be 4.6%, roughly the same as 4.7% reported this year in the U.S., according to data from Aon's Salary Increase and Turnover Study. This includes merit increases, promotions and market adjustments. Aon also reported 20.7% of U.S. employees left their jobs, of which 11.8% departed voluntarily in the first six months of 2024.

About Aon

Aon plc (NYSE: AON) exists to shape decisions for the better — to protect and enrich the lives of people around the world. Through actionable analytic insight, globally integrated Risk Capital and Human Capital expertise, and locally relevant solutions, our colleagues provide clients in over 120 countries with the clarity and confidence to make better risk and people decisions that protect and grow their businesses.

Follow Aon on LinkedInXFacebook and Instagram. Stay up-to-date by visiting Aon's newsroom and sign up for news alerts here.

* Includes promotion increases, market adjustments, internal equity adjustments and merit increases. 

Media Contact
Robert Elfinger
1-312-610-3182
robert.elfinger@aon.com

Aon plc (NYSE: AON) exists to shape decisions for the better — to protect and enrich the lives of people around the world. Through actionable analytic insight, globally integrated Risk Capital and Human Capital expertise, and locally relevant solutions, our colleagues in over 120 countries provide our clients with the clarity and confidence to make better risk and people decisions that protect and grow their businesses.

 

Follow Aon on LinkedIn, X, Facebook and Instagram. Stay up-to-date by visiting Aon’s newsroom and sign up for news alerts here. (PRNewsfoto/Aon plc)

 

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SOURCE Aon plc

FAQ

What percentage of U.S. employers are ready for pay transparency laws according to Aon's 2024 study?

According to Aon's 2024 North America Pay Transparency Readiness Study, only 18% of employers say they feel ready for pay transparency laws, while 75% are unprepared.

How many U.S. states will be affected by pay transparency laws by 2025?

Pay transparency laws will be in effect in 14 U.S. states by the end of 2025.

What is the predicted average salary increase budget for 2025 according to Aon's study?

Aon's Salary Increase and Turnover Study predicts an average overall salary increase budget of 4.6% for 2025.

What percentage of employers publish salary ranges in job postings according to Aon's 2024 study?

According to Aon's study, 81% of employers publish salary ranges in job postings.

What was the employee turnover rate in the first half of 2024 according to Aon's report?

The total employee turnover rate was 20.7%, with 11.8% departing voluntarily in the first six months of 2024.

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