Pay transparency is exposing a bigger problem: Most companies can’t explain why they pay what they pay
Despite the rise of pay transparency laws, many companies struggle to justify their salary decisions, leading to persistent pay gaps. Experts at a Fortune summit highlighted that the core issue is not a lack of shared pay information, but an inability to explain the rationale behind compensation. This inconsistency, often stemming from daily hiring and retention decisions that override strategic pay philosophies, results in employees not understanding their pay, and a widening gender pay gap. AI
IMPACT Companies are facing new regulatory requirements and internal challenges in justifying salary decisions, impacting HR and compensation strategies.
