The journey toward full pay transparency is ongoing, and while recent trends show a slight slowdown in the rate of new policies, companies across industries are still moving forward. According to Indeed's Hiring Lab, as of September 2024 around 58% of US job postings now include salary information, up from 37% two years ago. Transparency in compensation is here to stay so how can we prepare for what's next for pay transparency?

From Compliance to Good for Business

Simply posting salary ranges won’t be enough in the future. Companies will be taking pay transparency from a compliance-driven task to a competitive advantage - prioritizing compensation initiative into more thoughtful planning. This includes establishing a roadmap for: refining pay bands, ensuring internal equity, and regularly updating compensation structures based on current market data and trends.

With emerging regulations both in the US and globally, businesses need to stay agile. For example, Europe’s upcoming EU Pay Transparency Directive is set to be a game-changer (going live in June 2026), impacting compensation practices across member states.

"Proactive planning is essential for global companies to adapt to these changes, smoothly", said CEO & Founder of Kamsa, Lola Han.

Leverage Market Compensation Data

To stay competitive, using reliable global market data is a must-have for creating accurate and fair pay bands. Kamsa's proprietary compensation data enables companies to make informed decisions, align with industry standards, and ensures companies are confident communicating their compensation program.

What the Future Holds for Pay Transparency

As pay transparency regulations continue to expand, companies will likely see an increase in the demand for granular pay information, not only at the job level but potentially across skills sets, and experience levels. By investing in a structured and data-driven approach today, companies will be able to navigate these upcoming changes effectively and efficiently.

Preparing for the future of pay transparency is about building a culture of trust and setting the standard for competitive, fair compensation and attractive workplace in the years ahead.