As companies seek to build healthier, more engaged and more productive workforces in an uncertain economy, developing strong diversity and inclusion practices is no longer optional. While leaders have long considered how best to offer fair, equitable and competitive compensation to recruit and retain top talent, these efforts were historically executed privately. The growing movement for pay transparency challenges this traditional approach.

Spearheaded largely by a new generation of employees, the pay transparency movement seeks to shed existing taboos around compensation disclosures, which can perpetuate gender- and race-based pay gaps. Supporters argue that companies should take concrete actions, such as disclosing salary ranges on job applications and proactively communicating the criteria for determining pay and pay progression, to create fair compensation practices for all employees.