The Case for Pay Transparency in Global Payroll

March 25, 2025, is Equal Pay Day, a date first established in 1996 by the National Committee on Pay Equity to bring attention to the gender pay gap and push for meaningful solutions. It’s a stark reminder of the inequality still present today. In the U.S., women working full-time year-round earn just 83 cents for every dollar earned by men—and when including all workers, such as part-time and seasonal roles, that drops to 75 cents. Globally, the gap is even wider, with women earning, on average, 20% less than men according to the United Nations. 

The persistent history of gender pay inequality

This isn’t a new issue. Gender pay inequality has deep historical roots, stretching back centuries. Efforts to address it have been ongoing for over 100 years. In the 1830s, women in the UK protested unequal pay. In the U.S., Susan B. Anthony championed equal pay for equal work as early as the 1860s. And in 1975, women in Iceland went on strike to highlight pay disparities and other inequalities — a movement so impactful it included the nation’s prime minister.

While progress to close the gaps has been made in recent years, the issue is far from resolved. The World Economic Forum’s latest Global Gender Gap Report shows no country has yet achieved full gender parity, though countries like Iceland lead the way, having closed over 93% of their gender gap. In contrast, other nations still have significant gaps, highlighting the global nature of this challenge. Even in the U.S., the gender pay gap widened in 2023 for the first time in two decades — underscoring how progress can stall or even reverse without consistent action.

The growing importance of pay transparency in shaping fair workplaces

Pay transparency is becoming a vital part of the solution. Across the globe, countries are passing legislation requiring greater openness about salaries. In the U.S., many states now mandate that salary ranges be disclosed in job postings, and salary history bans are being introduced to help prevent previous pay inequities from carrying forward into new roles. In Europe, upcoming measures like the EU Pay Transparency Directive will push for even stronger reforms by 2026, requiring companies to share salary information proactively, report gender pay gaps, and conduct joint pay assessments if disparities are significant.

For global organizations, addressing pay equity isn’t just about compliance — it’s about creating fairer workplaces, fostering trust, and improving outcomes for everyone. Multinational companies that actively promote equitable pay are not only more likely to attract and retain top talent, but they also build stronger reputations and perform better financially. Research by The Josh Bersin Company shows that organizations focused on pay equity are 1.6 times more likely to meet or exceed financial goals and 2.1 times more likely to attract the talent they need.

Building a path toward sustainable pay equity

But achieving pay equity isn’t a quick fix. It requires commitment, thoughtful planning, and consistent action. Global organizations need to analyze their pay practices, set clear goals, and take steps to correct disparities when they’re found. This includes evaluating hiring, promotion, and performance review processes for hidden biases, as well as clearly communicating how pay decisions are made. Transparency is key — sharing compensation ranges, ensuring consistent criteria, and training managers to support these practices all contribute to a culture of fairness and accountability.

It’s also important to be realistic about challenges. Consolidating pay data, particularly for global organizations, can be complex. Budget constraints can make it difficult to immediately address all gaps, and clear communication is essential to prevent misunderstandings or mistrust. Pay equity isn’t a one-time project — it’s an ongoing process that requires continuous monitoring and refinement.

Prioritizing pay equity for a stronger workplace

For payroll managers and HR leaders at global companies, the growing emphasis on pay equity and transparency is both a challenge and an opportunity. By taking steps now to analyze and address pay disparities, you’re not only staying ahead of evolving regulations but also investing in the long-term success of your organization. Fair and transparent pay practices build trust, foster loyalty, and help create a workplace where everyone feels valued and respected. It’s a journey worth prioritizing — for all your employees and your business.