Pay Equity Gap Persists Despite Clear Business Advantages, New Research Reveals

The HR Research Institute's latest report, HR.com's Future of Pay Equity and Transparency 2025, reveals that few organizations excel at pay equity despite clear business advantages for those achieving greater equity. The study underscores pay equity as not just a compliance requirement but a strategic business imperative, with employers prioritizing it seeing tangible benefits including talent retention (60%), ensuring fairness (52%), and attracting top candidates (49%).

Despite these demonstrated advantages, the research indicates that only 28% of organizations have reached the top two stages of pay equity maturity, signaling significant room for progress across most companies. The findings highlight stark differences between organizations successfully closing pay gaps and those struggling to make meaningful advancement. 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, and 4 times more likely to set intentional goals to actively investigate and resolve workplace inequities.

Debbie McGrath, Chief Instigator and CEO of HR.com, emphasized that "Pay equity is more than a legal obligation—it's a competitive advantage. Organizations that invest in pay equity not only build trust with their workforce but also drive better business outcomes." The comprehensive research provides valuable insights for HR professionals and organizational leaders seeking to improve their pay equity initiatives and foster more inclusive workplace cultures. The full research report is available for free download and offers detailed analysis of current pay equity and transparency efforts, while the recording of the research webcast presentation, Beyond Compliance: Cultivating a Culture of Pay Equity, is available for viewing on demand.