Senior Client Partner
Organizational Transformation
Pay Transparency Strategy for Multinational Organizations
How multinational companies can develop pay transparency strategies that meet the unique needs of diverse global markets.
How Global Companies Can Approach Pay Transparency
Once considered a radical concept, pay transparency—openly sharing employee compensation information—is no longer the novel idea it was a few years ago.
In a recent Korn Ferry pay transparency survey, 12% of global companies said they have implemented a pay transparency strategy, and a further 15% have developed plans to do so.
With more places around the world bringing in pay transparency or pay equity legislation, those companies dragging their heels may soon have their hand forced.
“Many organizations are taking baby steps,” says Tom McMullen, Korn Ferry senior client partner. “But the runway is getting shorter, and the clock is ticking. Sitting on your hands forever is becoming less of an option.”
While implementing pay transparency is seldom a trouble-free process for any organization, companies with a global workforce face a particularly complicated set of challenges.
Multinationals must develop compensation strategies that allow for the accurate and appropriate disclosure of salaries—but that also fit the unique needs of markets with differing laws, cultural norms, and expectations. What’s legally required in London, for example, might differ from what the law dictates in Los Angeles, Singapore, or Sydney.
There are several factors to consider when establishing pay transparency across your multinational business. Here is a road map you can use to make the journey as smooth and successful as possible.
Understand Your Options
When determining how to develop a global pay transparency strategy, a few general approaches tend to emerge.
One Set of Principles for All Markets
Many companies will develop a single set of principles that apply to all international markets, with a common standard for what, when, and how pay information will be disclosed.
The sheer simplicity of this approach can make it appealing, according to Korn Ferry’s Serkan Sener. You will also likely benefit from a reputational boost if you're an early adopter.
“It can be a way to assert your point of view on pay equity and transparency,” Sener says. “That can quickly become part of your organizational DNA.”
The downside? A one-size-fits-all strategy allows little leeway for local rules and norms. It can also force some branches to open up about pay before they’re ready, which can cause all sorts of headaches.
Market-by-Market, Case-by-Case
Another common approach is more reactive and involves developing strategies for individual markets only when legislative or societal pressures make it necessary to do so.
This case-by-case approach means an organization doesn’t need to devote resources to the matter until it’s required. And then, once it is, companies can tailor a plan to the nuances of the jurisdiction.
Yet, this is no light lift. “It’s incredibly burdensome administratively,” says McMullen. “It’s also confusing to have different policies for different locations.”
Then there’s the matter of reputational risk. If you wait to act until you’re legally required, you run the risk of being perceived as a company that’s behind the times—or, worse, one that has something to hide.
Leading Indicator: Think Broad
More than half of the respondents to Korn Ferry’s most recent survey of companies in Europe, the Middle East, and Africa (EMEA) say they plan to establish equitable pay arrangements across their entire global organizations. They aren’t stopping at just the EU, whose member countries must incorporate the EU Pay Transparency Directive into their laws before June 2026.
Establish Principles Before Policies
For multinationals, the most practical approach tends to fall somewhere between the two options above.
“Implementing a global pay transparency strategy is much easier if you establish a global set of principles that clearly define your philosophy and approach to the matter,” says McMullen.
These principles can come from answering a few simple questions:
- What does our organization mean by pay transparency?
- Why do we think pay transparency is a positive thing?
- Who will pay transparency benefit?
- What are the company’s goals in pursuing it?
- What do we need to consider before implementing?
Taking the time to articulate your rationale for each answer will equip your organization with a logical framework that everyone can buy into.
“If you put a set of principles in place, it formally establishes your aspirations,” McMullen says. “Even if you’re starting in different places, and even if you have different journeys, you will understand the destination.”
Best Practice: Stress Test Your Principles
C-suite executives sometimes underestimate the practical considerations of implementing pay transparency.
Before you finalize your set of principles, McMullen advises sharing a concise summary with your company’s key HR and compensation leaders in different markets. Their feedback will help you identify gaps and ward off potential issues you might not have considered yet.
Prepare Your Organization
Once you’ve established and tested your set of principles, there are two key steps that can prepare your organization to quickly and effectively implement pay transparency when circumstances are right.
Step 1: Analyze Your Markets to Establish Pay Transparency Readiness
Look at existing or expected legislation at provincial, state, city, national, and regional levels to understand what employers are required to do. Then consult local leaders, who can advise on the cultural norms in the area and industry.
Group similar jurisdictions into tiers, based on their general readiness for pay transparency. Then develop general implementation policies for each.
This narrows what could be dozens of individual action plans into a few common processes, which you can then tweak as needed.
“This helps you to approach different tiers where they are,” says McMullen. “It allows you to acknowledge that, even if most markets aspire to be in the same place in a few years, not everyone is there yet.”
Step 2: Prepare Your Organization for Pay Transparency
“When you introduce transparency, it’s like inviting guests into your house,” Sener explains. “You want things tidy and in good shape before you let people in.”
Indeed, there are multiple housekeeping steps required for any successful rollout of pay transparency, including:
- Assessing current compensation imbalances
- Refining job architecture (that is, defining who gets paid what, and why)
- Equipping managers to communicate the rationale behind compensation decisions
- Preparing leaders to handle queries from disgruntled employees who’ve just learned that a colleague makes more than they do
Much of this groundwork can—and should—be done well in advance of any pay transparency launch, Sener says. “These issues are all solvable, but you do need to sort them out first.”
Pay Transparency: Begin Now, Benefit Later
Whatever stage your multinational organization is at in its pursuit of pay transparency—and however complex its rollout may seem—fortune is likely to favor firms that tackle the matter proactively and strategically.
“Most executives would agree that pay transparency is a good thing to do,” explains McMullen. “Most would also say it’s going to be a painful process to get where they need to be in order to implement pay transparency.”
But that’s no excuse for inaction, he says. “Think of it this way—is it a good idea to put off going to a doctor for screenings or checkups? If you have issues, wouldn’t you want to know what they are and work to make things better?”
Ready to get going? Watch our on-demand webinar, It Pays to Plan: A Strategic Roadmap for Pay Transparency, to start your multinational organization’s journey to pay transparency today.
Key takeaways
- What multinational organizations should consider when planning to implement pay transparency around the world
- Why establishing a set of pay transparency principles helps diverse global stakeholders
- How to develop a flexible pay transparency road map that meets the needs of different markets
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