Why pay equity, now?


Organizations face increasing pressure to assess and address pay equity. Reporting and self-evaluation requirements are on the rise, with differences by country and jurisdiction, and activist investors are pushing for companies to disclose their pay equity results. 


On top of that, an expectation for greater transparency from employees, and greater sharing of pay information between employees, demands that executives and managers be ready to respond to questions. Of course, for many the reason to promote pay equity continues to be the desire to attract and retain top, diverse talent by ensuring fair outcomes. 

Mercer’s pay equity approach can ensure fairness across an organization’s global footprint, to support a consistent standard of review, aligned to the intent of divergent regulatory requirements, and enterprise-wide disclosure.


Read the related articleOn pay equity, simple statistics can be deceiving


Responding to regulation





It is imperative to meet complex, emerging local requirements, jurisdiction by jurisdiction. Mercer offers local expertise to support regulatory submissions and other required activities.


Need for actionable analysis




We know from our When Women Thrive research that companies with robust, global pay equity processes – annual, statistical analyses to review issues and recommend pay adjustments, where needed – are more successful in building diversity. Mercer’s pay equity approach is delivered according to the highest standards, thoroughly validated with your legal and compensation teams; our consultants reveal areas of issue and suggest cost-effective, compliant strategies to counter such issues.


Read the related article: Achieving pay equity: How analytics has evolved to support true progress


Promoting equity, broadly

An Internal Labor Market (ILM) map showing representation and workforce flow differences by gender and across hierarchical levels:


Pay equity – ensuring equitable pay outcomes for employees in comparable roles and markets, with similar experience and skills, making similar contributions – is a part of what is needed to drive equity in opportunity. But it’s not enough. Mercer offers comprehensive diagnostics to help companies assess and improve the representation of diverse groups at all levels of the organizational hierarchy, focusing on the drivers of critical workforce flows including hiring, promotion, and retention.


Read the related articleInternal Labor Market Analysis®. Mining your workforce data for fact-based business decision making


Tools to drive results

To support equity, tools for practitioners are critical – to be able to assess where differences exist, the impact of different remediation strategies, and, behind those strategies, to be able to consider the appropriateness of specific pay adjustments. Mercer has developed our Pay Equity Calculator (PEC) 2.0, to empower companies to themselves review and act upon analyses conducted by Mercer experts. Together, we can ensure equity.


Read the related articleNew tools promise quick fixes for pay equity. Exercise caution.


The right partner


Pay equity and diversity analytics have been core Mercer services for more than two decades. Our experts stand ready to help you address this critical risk and realize the associated opportunities. Contact a consultant.


Learn about our broad analytics capabilities: Workforce analytics at Mercer

Contact our consultant