Pay Transparency: A Fresh Look

By Arianne Cohen

September 26, 2025

It’s on the books in at least a dozen US states and cities, not to mention much of Europe: If a company is posting a job, it needs to post a pay range. Somehow, that’s not happening.

According to a survey by Aon, a professional-services firm, fewer than a third of firms in the US are fully compliant with laws that apply to states and cities covering 44 million workers. Europe isn’t much better, with one survey finding that only 20 percent of job postings in both Germany and Italy had salary ranges. “Most firms aren’t just behind on policy—they’re behind on positioning,” observes workforce and visibility consultant Patrice Williams-Lindo. She says that many companies are grappling with the tension between internal inequity and brand image.

To be sure, some organizations have found ways to comply with the laws on paper, but only by posting absurd job ranges—like $65,000 to $399,000. In most cases, experts say, they’re trying to avoid upsetting low-paid workers, not to mention ducking a barrage of questions: How is this pay range determined? Why am I at the low end of the pay range, despite my three years in the job? Why does Jean have a higher-ranking title than Billie, whose job is undeniably harder? “These questions require companies to get very transparent on a broad range of topics beyond compensation,” says pay expert Tom McMullen, senior client partner at Korn Ferry.

But a growing number of experts say most firm leaders have it all backwards: In today’s world, they say, greater disclosure can create a healthy level of trust between employers and employees. And firms need workers to trust them—one survey found that more than two-thirds don’t. For his part, McMullen says that employees who understand their pay calculus, and feel it’s fair, are more likely to trust their employer. A 2022 study by PayScale found a 27 percent increase in employee trust at companies that promote salary transparency.

But pay transparency only works when a firm has set up a compensation system that’s equitable and easy to explain. Despite the looming transparency laws, many comp leaders have failed to do internal audits to determine the current status of their own comp policies or map out where they need to go. Simply put, pay transparency is a nightmare for any firm that lets bosses use their own discretion on, say, salaries and job titles. “A company can only tell a good story about pay programs if they have a good story to tell,” says McMullen.

Firms that can tell a good story about their pay programs will likely pick up the talent they need, experts say, even if they’re not offering the highest salaries. Pay transparency isn’t just about compliance; it’s about treating people fairly, which employees find appealing and firms can use as a point of engagement. “There’s an ethics aspect of this—it’s just the right thing to do,” says McMullen.

Photo credits: Kursad/Getty Images