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Compensation

Pay Transparency

Openly sharing information about pay ranges and compensation decisions.

Full Definition

Pay transparency is the practice of openly sharing information about salary ranges, pay structures, and compensation decision-making within an organization or externally in job postings. Increasing pay transparency legislation (e.g. EU Pay Transparency Directive, effective 2026) is driving organizations to publish salary ranges in job ads and report pay data by gender. Pay transparency reduces pay inequity, improves trust, and helps organizations attract candidates who value openness. HR analytics tools support pay transparency through pay equity analysis and reporting.

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