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

Mercer’s

2024GlobalPayTransparency

SurveyReport

Howtoturninsightsintoaction

8

9

6

10

3

2

4

5

11

1

7

Contents

Contents1.

Executivesummary3

2.

Methodology5

3.

Paytransparencysentimentsandexpectations6

4.

Thelegislativelandscapeanditscomplexities7

5.

Evolutionofpaytransparency9

6.

Novartis:aMercerclientcasestudy11

7.

Employeeretentionandfairpay13

8.

Paytransparencypracticesandstrategies15

9.

Challengesandopportunities26

10.

Seizethemoment29

11.

Appendix30

Mercer’s2024GlobalPayTransparencySurveyReport2

6

8

10

9

2

3

4

5

11

7

1

Contents

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.

Mercer’s2024GlobalPayTransparencySurveyReport3

9

6

8

3

10

2

4

11

5

1

7

Contents

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.

Mercer’s2024GlobalPayTransparencySurveyReport4

6

9

2

3

10

8

4

7

5

1

11

Contents

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.

Mercer’s2024GlobalPayTransparencySurveyReport

6

8

10

9

2

3

4

5

11

7

1

Contents

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.

Mercer’s2024GlobalPayTransparencySurveyReport6

3

8

6

10

9

2

4

1

7

5

11

Contents

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

1

,settotakeeffectin2026,mandates

thatemployersprovideinformationonindividualandaveragepay

levels,brokendownbygender.Thisdirectivealsorequirescompanies

toconductpayassessmentsand

reportonpaygaps.TheEuropeanCommission’scommitmentto

genderequalitydrivesthese

initiatives,aimingtoaddress

systemicpaydisparitiesacross

memberstates.Multinational

companiesintheEUmustprepareforthesechangesbyimplementingcomprehensivepaytransparencypoliciesthatalignwiththenew

directives.

Currently,theUKdoesnothaveanypaytransparencylaws,

thoughgenderpaygapreportingobligationswerepassedin2017forcertainemployers.While

Mercer’s2024GlobalPayTransparencySurveyReport7

10

9

2

3

6

8

4

7

5

11

1

Contents

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.

Mercer’s2024GlobalPayTransparencySurveyReport8

6

8

10

9

2

3

4

5

11

7

1

Contents

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

4

and2023-2024Mercer

InsideEmployees’Minds

5

reports

havepreviouslyrevealed,thereisasignificantgap

6

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.

Mercer’s2024GlobalPayTransparencySurveyReport9

8

9

3

6

2

10

4

5

7

11

1

Contents

Figure1.Fairpaymakesemployeesstay

Accordingtoemployees

AccordingtoHR

20222024

2024

JobsecurityFairpay

Workculture

Learningopportunities FlexworkingCompetitiverewardsWorkload

Coworkers/peopleConfidenceinorgstrategyHealthinsurance

LeadershipWell-beingprogramsOrgbrand/reputation

CareeradvancementopportunitiesOrgmakingpositiveimpact

DEIInnovationTimeoff

RetirementoptionsManagers

4

2

6

7

5

12

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

1

2

3

5

7

8

15

19

9

10

14

4

6

13

11

12

16

20

17

18

Afterjobsecurity,fairpayis

nowthesecondmostimportantreasonemployeeschooseto

staywiththeiremployer,upfromfourthplacein2022.

Thebusinessbenefitsof

fosteringatransparentpayenvironmentarealso

well-established.

Paytransparency:

?Buildstrustwiththe

organization,drivinghigher

performanceandengagement.

?Deliversaconsistentexperienceforbothcandidatesand

employees,irrespectiveoflocation.

?Promotesaccountability,leadingtofairerandmoreequitableoutcomes.

?Createsacompetitive

advantage,attractingand

retainingtalentwhilebuildingamoreinclusiveculture.

Risksofnotappropriatelyengaginginpaytransparencycouldbetheoppositeofthesestatedbenefits.

Mercer’s2024GlobalPayTransparencySurveyReport10

8

2

6

10

3

9

4

5

7

1

11

Contents

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.

Mercer’s2024GlobalPayTransparencySurveyReport

11

MercerisNovartis’GlobalPayTransparencyAdvisor

6

8

9

3

10

2

4

7

5

11

1

Contents

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.

Mercer’s2024GlobalPayTransparencySurveyReport12

2

3

6

9

8

10

4

5

7

11

1

Contents

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

Mercer’s2024GlobalPayTransparencySurveyReport13

3

10

9

8

2

6

4

7

5

11

1

Contents

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.

Mercer’s2024GlobalPayTransparencySurveyReport14

10

8

9

3

2

6

4

1

5

7

11

Contents

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