This post was originally published on this site
Few organizations excel at pay equity despite the fact that those with greater equity see many business advantages, according to the HR Research Institute’s latest report, HR.com’s Future of Pay Equity and Transparency 2025, which underscores the critical importance of pay equity, not just for compliance but as a strategic business imperative.
The study reveals that employers who prioritize pay equity see tangible benefits, including talent retention (60%), ensuring fairness (52%), and attracting top candidates (49%). Despite these advantages, only 28% of organizations have reached the top two stages of pay equity maturity, signaling significant room for progress.
The findings highlight key differentiators between organizations successfully closing pay gaps and those struggling to make progress. Compared to companies with less effective pay equity initiatives, high-performing organizations are:
4.5 times more likely to have a formal budget dedicated to closing pay gaps
4 times more likely to define clear and accurate performance metrics
4 times more likely to set intentional goals to actively investigate and resolve workplace inequities
“Pay equity is more than a legal obligation—it’s a competitive advantage,” said Debbie McGrath, Chief Instigator and CEO of HR.com. “Organizations that invest in pay equity not only build trust with their workforce but also drive better business
