Prioritizing Pay Equity Is a Strategic Business Imperative - New Study by HR Research Institute

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 outcomes.”

The full research report, HR.com’s Future of Pay Equity and Transparency 2025, is available for free download and offers a detailed look at today’s pay equity and pay transparency efforts to help HR and leaders improve their initiatives for closing wage gaps to lead the way in fostering an inclusive and engaged workplace culture.

The recording of the research webcast presentation, Beyond Compliance: Cultivating a Culture of Pay Equity, is available for viewing 24/7 on demand.

About HR.com and the HR Research Institute

The HR Research Institute (HRRI) helps you keep your finger on the pulse of HR! Powered by HR.com, the world’s largest HR community, the HRRI identifies key trends and best practices to help more than 2 million HR professionals and their organizations make strategic decisions with informed and insightful research findings. Among the most productive and respected HR research institutes globally, the HRRI publishes dozens of high-quality reports every year across a wide array of HR topics. HR.com’s free membership offers many benefits, including access to over 250 exclusive primary research, state-of-the-industry reports, and infographics. These resources are published based on surveys developed with the assistance of a panel of thought leaders and industry experts on the advisory boards. Visit hr.com/hrresearchinstitute to maximize your HR potential.

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