How can HR navigate growing pay transparency laws?

“If they’re inconsistent or undocumented, transparency creates exposure – legal, cultural, and reputational,” the report read.

It said the risk of implementing transparency without a rigorous pay equity analysis can expose unresolved gaps to employers, regulators, and employees simultaneously.

Unexplained salary ranges and inequitable internal pay can also trigger morale disruption and turnover.

“Organisations that assign pay equity monitoring as a secondary responsibility to existing HR staff – without dedicated expertise, appropriate tools, or a full understanding of the legal and strategic implications – run the risk of making, and publishing, expensive mistakes,” it added.

Getting pay disclosure right

By contrast, compensation programmes that are built on the strategic sequence can reduce enforcement exposure, as well as raise engagement and leadership credibility.