全球薪酬透明度报告 Mercers 2024 Global Pay Transparency Survey Report How to turn insights into action

Mercer’s

2024GlobalPayTransparency

SurveyReport

Howtoturninsightsintoaction

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Contents

Contents1.

Executivesummary3

2.

Methodology5

3.

Paytransparencysentimentsandexpectations6

4.

Thelegislativelandscapeanditscomplexities7

5.

Evolutionofpaytransparency9

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Novartis:aMercerclientcasestudy11

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Employeeretentionandfairpay13

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Paytransparencypracticesandstrategies15

9.

Challengesandopportunities26

10.

Seizethemoment29

11.

Appendix30

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Executivesummary

Paytransparencyisquicklybecomingabasic

requirementfororganizationsacrosstheworld—

criticalnotonlytomaintaininglegalcompliancebutalsotoattractingandretainingemployees.Nolongeramatterof‘if’,inmanyregionsthecriticalquestionshaveshiftedto‘when’and‘how’.

OurnewMercerresearchunderscoresthisreality,

showingtheurgencyforbusinessestoactdecisively,

butinanuancedmannerthatreflectstherealityof

varyingrequirementsindifferentregionsoftheworld.Inspringof2024,1,160respondentsheadquartered

indifferentregionsaroundtheglobeparticipated

inMercer’s2024PayTransparencySurvey,seekingto

understandhowvariousorganizationsareapproachingthechanginglandscapeofpaytransparency,aswell

asmeetingemployeeexpectationsformorepaydisclosure.Inthisreport,wesharethosefindings.

Onethingisclear,paytransparencyisnotapassingfad.Nomatterwheretheyoperate,ourdatashow

employersincreasinglyrecognizingrapidly-evolvingcandidateandemployeeexpectationsforopennessaboutcompensation.Thelegislativelandscapeis

complexandfraughtwithrisksbutitalsooffers

opportunitiesforthosewhoareproactive.Thatsaid,programsinitiallydesignedforinternalHRpurposesarefallingshortandnotrapidlyadaptingtopublic-

facingtransparencyexpectations.Companiesmust

behonestabouthowstrongtheirfoundationsare—addressingjobarchitecture,compensationstructures,payequityandcommunicationstoensuretheirpay

transparencycanmeetthemoment.

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Complianceisakeydriverforpaytransparencyinmostregionsas

theresultsofthisresearchshowbutthebiggestunderlyingrisksandbenefitsforpaytransparencycomethroughbusinessoutcomesthatmightormightnotbemetacrossthreekeycategories:

Engagement:Asemployees

becomemorecommittedtoand

engagedwithemployerstheyfeelaretreatingtheminafairand

transparentmanner,thosewhoarenotauthenticallycommittedmayhavechallengeswithengaging

theirtalent.

Retention:Asemployeepushforpaytransparencyandpayequity

aspartoftheiremployeedeal,

howthisismetwillimpactwhetheremployeesstayorgo.

Attraction:Asnewhireslookfor

clearsignalsabouthowemployerspay,theemployerbrandneedstoadapttoattractcandidates.

Settingastrategythatalignswithyourglobalbusinessgoalsand

talentstrategywillthereforeprovecrucialtosuccessandgrowth.Whileitispossibletoadoptaminimal

complianceapproach,therationalebehindeachdecisionmustbeclearanddefensibletostakeholders.

Marketandregionalreadinesswillplayapivotalroleinhowthese

strategiesrollout.Endgoalsshouldbealignedacrossregions,butas

wehaveobservedinmanylarge

organizations,thosestrategies

mayneedtobetailoredmarketbymarkettorespondtodifferentlaborandlegalpressures.

Whateverthegeographicstrategynuances,companiesshouldadoptaholistic,long-termperspectiveonpaytransparency.Thisisnot

aone-timeinitiativethatcanbe

setandforgotten.Expectations

willcontinuetoevolveand

organizationsmustbepreparedtoadaptcontinuouslyastheygo.

Toeffectivelyaddresspay

transparency,companiesmustfirstassesstheirexistingstructuresandprocesses.Thisinvolvesacritical

evaluationofjobarchitecture,

compensationstrategiesandpay

equityinitiatives.Transparency

programsdesignedsolelyforHR

purposesmaynotbesuitablefor

publicdisclosurewithoutsignificantmodifications.

Companiesthatactnowto

strengthentheirfoundationsandaligntheirstrategieswithglobal

businessgoalswillbebetter

positionedtonavigatethiscomplexlandscapeandachievesustainable,equitableoutcomes.

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Methodology

Thesurveywasadministeredonlinefrom

April15toMay15,2024.Respondentswere

invitedtoparticipateintheopensurvey.

Therewere1,160participantsfromacross

52countriesrepresenting1,144companies

headquarteredin45countries.Justover70%ofcompaniesarefor-profitmultinational

companiesandanother20%arefor-profit

singlecountrycompanies.Approximately35%ofcompanieswereheadquarteredinEurope,32%intheUnitedStates,withanother22%inCanada,7%inUnitedKingdomandIreland,and4%inAsia.

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Paytransparencysentimentsandexpectations

Differentiatingkeyconcepts:Paytransparency,payequityandpaygapreporting

Beforegoingintothefindings,itisimportantto

distinguishbetweenpaytransparency,payequity

andpaygapreporting,eventhoughtheyareoftenintertwined.Forthepurposeofthisreportwedefinethosetermsassuch:

Paytransparencyinvolvesanemployersharingwhat,whyandhowitsemployeesarecompensatedrelativetothecurrentmarketandcontext.Thisincludes

anunderstandingofthecompany’scompensationphilosophy,strategiesandpractices,aswellasthepurpose,designandunderstandingofdifferentformsofpay.

Payequityreferstoensuringfairpayforsimilarworkregardlessofgenderorrace/ethnicity.Thisincludescompensationbasedonfactorssuchasjob,locationandexperience.Itencompassesthefullrangeof

paymentsandbenefits,suchasbasicpay,non-salarypayments,bonuses,stockawardsandallowances.

Paygapreportinginvolvespublicdisclosureofaverageormedianpaygaps,particularlybetweenmalesand

females,oftenbrokendownbyjoblevelorsalaryquartiles.Thisisincreasinglybecomingalegislativerequirement,especiallyinEurope.

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Thelegislativelandscapeanditscomplexities

Thelegislativelandscape

surroundingpaytransparencyisbecomingincreasinglycomplex.Withvaryingrequirementsacrossdifferentjurisdictions,theriskofinefficiencyandnon-complianceishighformultinational

corporations.Companiesmust

navigatethiscomplexitywith

carefulconsiderationandstrategicplanning,sinceacomplianceonlyapproachwillundoubtedlyresultininconsistentemployeeand

candidateexperiences.

UnitedStates

IntheUS,paytransparency

legislationvarieswidelyby

state,withanemphasison

communicatingpayrangesto

candidatesandemployees.StateslikeCalifornia,ColoradoandNew

Yorkhavealreadyimplemented

stringentlawsrequiringemployerstodisclosepayrangesinjob

postings.Forinstance,California’spaytransparencylaw,effective

January1,2023,mandates

employerstoprovidepayscalestojobapplicantsuponrequestandtocurrentemployees.Colorado’sEqual

PayforEqualWorkActrequires

employerstoincludecompensationrangesandbenefitsinalljob

postings.Thispatchworkofstate

regulationscreatesachallengingenvironmentfornationwide

employers,necessitatingastrategic

approachtocompliancesoasnottoresultininconsistentemployeeandcandidateexperiences

statetostate.

Canada

Canadafollowsasimilarpath,

withprovincesindependently

proposingandpassinglawsfocusedonpayrangecommunication.

Ontario’sPayTransparencyAct,

althoughcurrentlyonhold,setthestagebyrequiringemployersto

includesalaryrangesinpublicjobadvertisementsandtoreporton

workforcecompensation.British

ColumbiaandNovaScotiaare

consideringsimilarlegislation,

aimingtoincreasetransparencyandreducepayinequities.CompanieswithoperationsacrosstheUSandCanadaforexamplehaveamore

complexapproachtonavigatingconsistentexperiences.

EuropeanUnion

andUnitedKingdom

IntheEuropeanUnion(EU),the

historicalemphasishasbeen

onpaygapreportingbutnew

directiveswillsoonrequirepay

rangecommunicationaswell.TheEUPayTransparencyDirective

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,settotakeeffectin2026,mandates

thatemployersprovideinformationonindividualandaveragepay

levels,brokendownbygender.Thisdirectivealsorequirescompanies

toconductpayassessmentsand

reportonpaygaps.TheEuropeanCommission’scommitmentto

genderequalitydrivesthese

initiatives,aimingtoaddress

systemicpaydisparitiesacross

memberstates.Multinational

companiesintheEUmustprepareforthesechangesbyimplementingcomprehensivepaytransparencypoliciesthatalignwiththenew

directives.

Currently,theUKdoesnothaveanypaytransparencylaws,

thoughgenderpaygapreportingobligationswerepassedin2017forcertainemployers.While

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companiesintheUKarenot

subjecttotherequirementsof

thePayTransparencydirective

intheEU,anycompanydoing

businessacrossEuropemaywanttoapplyaconsistentapproach

fortheirentireworkforce,orataminimumacrosstheregion.TherecentlyelectedLabourpartyhasmadetheexpansionofpaygapreporting(toincludeethnicity

anddisabilityreporting)apartofitspolicyplatformasapartofabroadertransparencyandfairnessapproach.

Asia-Pacific

IntheAsia-Pacific(APAC)region,thefocushaslargelybeenonpaygapreporting,withlimitedemphasis

onpayrangecommunication.

CountrieslikeAustraliaandJapan

havemadestridesingenderpay

gapreporting.Australia’sWorkplaceGenderEqualityActrequiresnon-publicsectoremployerstoreport

ongenderequalityindicators,includingremuneration.Japan’sActonPromotionofWomen’s

ParticipationandAdvancement

mandatesdisclosureofgenderpaygapsforcompanieswithover301employees.However,payrange

communicationisstillemergingasatopicinthisregion.Asawarenessgrows,APACcountriesmaybegintoadoptmorecomprehensivepaytransparencymeasures.

LatinAmerica

LatinAmerica(LATAM)isstartingtopaymoreattentiontothetopic,especiallyasBrazilleadsthewaybutoverallregionalfocusremains

low.Brazil’sMinistryofLabor

andEmploymenthasintroduced

guidelinesforcompaniesto

reportgenderandracialpaygaps,reflectingagrowingrecognition

oftheimportanceofpayequity.

Othercountriesintheregion,

suchasMexicoandArgentina,areobservingthesedevelopmentsbuthaveyettoimplementwidespreadpaytransparencylegislation.As

interestinpayequityincreases,

LATAMcountriesmayfollowBrazil’slead,promptingcompaniesto

proactivelyaddresspaydisparitiestostayaheadofpotential

regulatorychanges.

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Evolutionofpay

transparency

Thejourneytowardspay

transparencyhasbeendrivenbyseveralfactors.TheproliferationofdataonsiteslikeGlassdoor,

Linkedin,IndeedandPayScale

havemadecompensationinformationmoreaccessiblethanever.

Societalandemployee

expectationshavealsoshifted

significantlyinrecentyears,withnearly90%ofGen

Z2,3

respondentsexpressingcomfortinopenly

discussingpayatworkandnearlyhalfofallcandidatesstatingtheywon’tevenapplyforajobwithoutupfrontpayratedisclosure.

Legislativeactionsuchaswe

listedabovehasbeenanother

majorcatalyst,beginningwith

California’spaytransparency

legislationinJanuary2018and

expandingglobally.Additionally,

thereisgrowingshareholderfocusonworkforceandenvironmental

sustainability,highlightedbytheEU

CorporateSustainabilityReportingDirective(CSRD)whichtookeffectinthe2024financialyear.

Overall,thepushforpay

transparencyisreshapingthe

corporatelandscape.Companiesmustactdecisivelytonavigatethiscomplexandevolvinglandscape,ensuringtheymeetbothlegal

requirementsandtheexpectationsoftheirworkforce.Thisreport

providesacomprehensive

overviewofthecurrentstateofpaytransparency,offeringactionableinsightsandstrategiestohelp

organizationsachievecomplianceandleveragetransparencyasastrategicadvantage,especiallyinaworldwhereinformationand

practicescaneasilybecomparedacrossgeographicboundaries.

Fairpayisacriticalfactorinbothemployeeattractionandretention.Asour2024MercerGlobalTalent

Trends

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and2023-2024Mercer

InsideEmployees’Minds

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reports

havepreviouslyrevealed,thereisasignificantgap

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betweenemployeeexpectationsandorganizational

preparednesswhenitcomesto

payequity.Fororganizations

focusedonattraction,retention

anddifferentiatingtheiremployeeexperiencethisgapunderscores

theurgencyforcompaniesto

addressemployeeexpectations

proactivelyaswellaskeeptrustandengagementhigh.

AccordingtoMercerresearch,

almosthalf(46%)ofcandidates

won’tapplyforajobwithoutpayinformation.Whenemployees

believetheyarepaidfairlythey

aretwiceaslikelytounderstandhowtheirorganizationdeterminescompensation,twiceaslikely

tohavetheirpayranges

communicatedbytheirmanagers,85%moreengagedand60%morecommittedtotheirorganization.

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Figure1.Fairpaymakesemployeesstay

Accordingtoemployees

AccordingtoHR

20222024

2024

JobsecurityFairpay

Workculture

Learningopportunities FlexworkingCompetitiverewardsWorkload

Coworkers/peopleConfidenceinorgstrategyHealthinsurance

LeadershipWell-beingprogramsOrgbrand/reputation

CareeradvancementopportunitiesOrgmakingpositiveimpact

DEIInnovationTimeoff

RetirementoptionsManagers

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Afterjobsecurity,fairpayis

nowthesecondmostimportantreasonemployeeschooseto

staywiththeiremployer,upfromfourthplacein2022.

Thebusinessbenefitsof

fosteringatransparentpayenvironmentarealso

well-established.

Paytransparency:

•Buildstrustwiththe

organization,drivinghigher

performanceandengagement.

•Deliversaconsistentexperienceforbothcandidatesand

employees,irrespectiveoflocation.

•Promotesaccountability,leadingtofairerandmoreequitableoutcomes.

•Createsacompetitive

advantage,attractingand

retainingtalentwhilebuildingamoreinclusiveculture.

Risksofnotappropriatelyengaginginpaytransparencycouldbetheoppositeofthesestatedbenefits.

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Novartis:aMercerclientcasestudy

Introduction

In2018,Novartismadeapublic

pledgewiththeUnitedNations’

EqualPayInternationalCoalition(EPIC)tohelpclosetheoverall

genderpaygap.Withthis,

Novartishasmadeasignificant

commitmenttogender,payequityandpaytransparencythrough

itsparticipationmembership.

TheEPICpledgewasrenewedin

2023tomaintaingenderbalanceinmanagementandreviewthe

humanresourcespracticesbeyondbasepaytoeliminateanyfurtherpotentialsourcesofbiasfromthesystemby2027.

Novartis’EPICpledgecommitmentsand

keydrivers

ThekeydriversbehindNovartis’

commitmenttoEPICarerootedinitscorevaluesofdiversity,equityandinclusion.Novartisrecognizestheimportanceofcreatingan

inclusiveandequitableworkplacethatempowersallitsemployeestoreachtheirfullpotential.Diversityandaspartofitgenderbalance

areseenaskeydriverstobuildanenvironment,whichboosts

innovationandimprovesthelivesofpatientsworldwide.

NovartishascloselymonitoredtheachievementsoftheircommitmentssinceenteringtheEPICpledgein

2018.Oneofthegreatestsuccesseswasthattheywereabletohaveaverystrongcommitmentacross

Novartistoworkonthispledgeandtorenewitin2023with

updatedcommitments.Havingthewholeorganizationalignedonthe

importanceofthistopic

providesthefoundationto

achievingtheircommitments.

Aspartoftheirintegratedannualreport(“NovartisinSociety”),

theyshareprogressonpayandgenderequity:

•Allemployeesarecoveredbyarobustpayequity

validationmethodology.

•Basedonglobaldataasof

December31,2022women’s

earningsatNovartisarewithinonepercentofmen’s.

•By2023,Novartisgloballyremovedhistoricalsalarycomparisonsfromtheir

offerprocesses.

•Novartisimplementedpay

transparencyfunctionalityin

theirHCMsystems(wherelegally

permissible),meaningemployeeshaveaccesstoindividualpay

positioncomparedtointernal

and/orexternalbenchmarkdata.

•Novartisachievedgenderbalanceinmanagement,withwomen

representing48%oftheiroverallmanagementgloballyatthe

endof2023.

•Gender-neutralparentalleave(minimum14weeksofpaidleave,asofJan2021)was

implementedglobally.

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Successandchallenges,butclearcommunication

Nomatterhowbigtheirsuccesses

are,itiscleartothemthat

communicationandchange

managementiskey.Thisiswhysharingabouttheircommitmentsandrespectiveprogress,both

internallyandexternally,ispartoftheirstory.

TheimplementationoftheirEPICcommitmentsineachcountry

wasbasedonspecificneedsandlocalrequirements,foundedon

aseriesofprinciplestodrive

globalconsistencyandhonortheirenterprise-widecommitment.Itisimportanttobemindfulthatthe

fullrealizationofEPICwasa

multi-yearjourney,withsomecountriesachievingcertain

milestonesearlierthanothers.

Whereapplicable,localworks

councilsand/ortradeunions

wereconsultedpriortofinalizing

countryspecificrolloutplans.

Theexperienceshowsthatdue

toattritionratesandbecauseof

thechangeimpact,continuous

trainingisrequiredtoachievedeepimplementationintheorganization.Tobeconsistentonmessaging

andtojoinforces,alignmentwith

thecompany’svaluesandtheD&I

strategyiskeytosuccess.UntilHRsystemsarefullyintegrated,flexibleandreadytocomplywithincreasingrequirementsforexternalreporting,itwillstilltakesomemoresteps

goingforward.

Acommitmenttothefuture!

WhilethesuccessinNovartis’2018

commitmentsisanimportant

achievement,theirjourneywill

notstopthere.Payandgender

equityissomethingthatNovartis

remainsfullycommittedto,and

toensuresustainablechangetheyhaverenewedtheirEPICpledgeinSeptember2023tosustainprogressandmeetenhancedlegislative

requirements.Bycontinuingtheirfocusonmaintaininggender

balanceinmanagement,theywillalsopositivelyinfluencetheoverallgenderpaygapwhichisoftendrivenbyunequal

distributionofonegenderinseniorleadershiplevels.EliminatingbiasfromHRpoliciesandpractices

promotesafairandinclusive

workenvironment,allowingtheirpeopletothrivebasedonmeritandequalopportunities.

ThisalignswiththeircommitmentatNovartistoequalpayforequalworkofequalvalue.TounderlinethisaspirationNovartishas

publishedtheaspirationalgoalsintheirannualreport,publiclysharingtheircommitmentswiththeir

shareholdersandsociety.

Disclaimer:Novartispolicyrequiresthatallemploymentdecisionsarebasedsolelyonjob-relatedfactors,includingtheskills,qualificationsandexperienceofthecandidates

fortherole,withoutregardto

gender,race,ethnicityoranyotherpersonalcharacteristicswhichareunrelatedtothejob.Novartis,

asaglobalcompany,complieswiththelawsofeachcountryitoperateswithin.

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Employeeretention

andfairpay

Giventhebackgroundandcontextabove,wenowturntoresultsfromoursurvey.AccordingtoourGlobalPayTransparency2024findings

69%ofglobalcompaniesagreeorstronglyagreethattransparencyisanexpectationofcandidates.Additionally,58%ofcompanies

acknowledgethatemployeesalsoexpectpaytransparency.

Thisrisingimportanceoffairnessinemployeepreferencesunderscoresthegrowingimportanceof

transparentpaypracticesin

retainingtalent.Whileemployers

acknowledgetherisingexpectations

aroundpaytransparencyour

currentdatarevealsthereisstilla

significantreadinessgap.Lessthanone-third(32%)oforganizations

saidtheyfeelpreparedtomeet

globaltransparencyrequirements.Thisdiscrepancyhighlightsthe

pressingneedfororganizationstoelevatetheirtransparencypracticestomeetbothcandidateand

employeeexpectationseffectively.

Figure2.Transparencyexpectations

Stronglydisagree

Agree

Neutral

Disagree

Stronglyagree

Transparencyisanexpectationofouremployees

10%48%31%10%

Transparencyisanexpectationofcandidates

13%56%25%5%

Source:GlobalPayTransparencySurvey

Figure3.Ourcompanyispreparedfortheimpactofglobalrequirements

Stronglyagree

Agree

Neutral

Disagree

Stronglydisagree

Ourcompanyispreparedfortheimpactofglobalrequirements

28%31%30%7%

Source:GlobalPayTransparencySurvey

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Although,59%ofsurveyrespondentsbelievethat

Figure4.Transparencyshouldbethesameacrossallgeographies

transparencyshouldbeconsistentacrossallgeographies,thereweresignificantregionalvariationsinpaytransparencyreadiness.

Stronglyagree

Agree

Neutral

Disagree

Stronglydisagree

Transparencyshouldbethesameacrossallgeographies

14%45%26%12%

Source:GlobalPayTransparencySurvey

Acrossallregions,employersreporthighercandidatepaytransparencyexpectationsascomparedto

employees.CompaniesintheUK,IrelandandEuropewerethemostoptimisticaboutthepotential

forpaytransparencytoimprovepayequity.Employeesinthe

UKandIrelandhadthehighest

expectationsforpaytransparency,suggestingamoreurgentneedfororganizationsintheseregionsto

advancetheirtransparencyefforts.

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Paytransparency

practicesandstrategies

Forty-four

percentof

organizations

acrossall

regionsreportedtheyarestill

inthestrategydevelopmentphase

Globaltrendsand

benchmarksforcompliance

InourpracticeatMercer,we’ve

oftenfoundthatorganizationstendtofallintooneofthreecategorieswhenitcomestochange:Resisters,transformersandleaders.

Thisishowthosemodelslookintheareaofpaytransparency:

•Resistersprioritizeconfidentialityandfocusonminimum

requirements.

•Transformersrecognize

thepotentialbenefitsofpay

transparencybutacknowledgetheneedforpreparationandriskmitigation.

•Leaderspioneerinthepay

transparencyspace,setting

benchmarksforotherstofollow.

Lookingcloselyatpracticesandstrategiesaroundintegratingpaytransparency,weuncoveredsomekeyvariablesandwidedifferencesinorganizationalpreparedness,internalversusexternalsharingpractices,responsibilityfor

transparency,motivatingfactors,thescopeofsharedinformation,actionstoimprovetransparency,futureplansandmore.

Preparedness:

Avariedlandscape

Inthissurvey,wefo