The latest report from the HR Research Institute, HR.com’s Future of Pay Equity and Transparency 2025, sheds light on the significant yet underutilized benefits of pay equity in the workplace. Employers that prioritize pay equity not only comply with legal standards but also enjoy substantial business advantages, such as improved talent retention (60%), enhanced fairness (52%), and the ability to attract top candidates (49%).
Despite these benefits, the report reveals a stark reality: only 28% of organizations have reached the top two stages of pay equity maturity. This gap underscores the need for more companies to adopt comprehensive pay equity strategies. High-performing organizations, those leading in pay equity efforts, are 4.5 times more likely to allocate a formal budget towards closing pay gaps, four times more likely to establish clear performance metrics, and four times more likely to set intentional goals for addressing workplace inequities.
Debbie McGrath, Chief Instigator and CEO of HR.com, emphasizes, "Pay equity is more than a legal obligation—it’s a competitive advantage." This statement highlights the dual role of pay equity in fostering trust within the workforce and driving superior business outcomes.
For those interested in delving deeper into the subject, the full research report is available for free download. It provides an in-depth analysis of current pay equity and transparency efforts, offering valuable insights for HR professionals and leaders aiming to close wage gaps and cultivate an inclusive workplace culture. Additionally, the recording of the research webcast presentation, Beyond Compliance: Cultivating a Culture of Pay Equity, is accessible on demand, providing further exploration of the topic.
