This April, diversity, equity and inclusion, as well as flexibility took centre stage, as countries made efforts to drive towards a fairer and more progressive workplace. Companies who manage to turn this into an opportunity get to reap significant rewards.

Regulatory changes on pay transparency

On April 24, the EU Council adopted new rules passed by the European Parliament on pay transparency to combat pay discrimination and close gender pay gaps. Salary range of advertised positions are to be made compulsory, alongside other pay-related information like criteria to decide pay and career progression. Companies operating in the EU will also be obligated to report their gender pay gaps, and take action if it exceeds 5%.

A nationwide pay transparency bill was also proposed in the United States to mandate employers to disclose pay ranges in job postings so as to address concerns around pay equity. 

While the national bill is still in its early stage, legislators are not waiting on the US Congress to make changes happen. The City of Columbus is the latest city in Ohio, following Toledo and Cincinnati, to ban employers from asking prospective employees about their salary history, effective March 1, 2024. 

Changed workforce, new expectations

Over in Australia, its Senate proposed “ambitious reforms” for a changed workforce, including a four-day work week, a year of paid parental leave and the right to disconnect from work outside of hours among other recommendations. 

In Southeast Asia, particularly Singapore and Malaysia, consumer research company Milieu Insight found workers were skeptical about equal opportunities for all employees, and dissatisfied with their companies’ DEI efforts in the workplace.

Research from the Josh Bersin Company also shows that while company leaders identify pay equity as a critical component of their people and business strategy, few are dedicating sufficient resources to address related issues. 

Changes are happening at a rapid pace, especially with the proactive push by governments around the world. However, it does not seem to tell the same story on the ground. A majority of the employers are still lagging behind and taking reactive steps as mere compliance. 

But for companies who can embrace these changes, they can turn those into benefits, like higher profitability, improved customer satisfaction, and success in attracting and retaining top talent.