Why So Many Companies Hesitate on Pay Transparency - and Why April 2026 Changes the Equation

Pay transparency is no longer a theoretical debate. Globally  -  and increasingly in Australia  -  regulators, employees, boards and investors are expecting organisations to clearly explain how pay is set, where gaps exist, and what is being done to close them.

And yet, many organisations still hesitate.

A recent Korn Ferry article outlines seven common reasons companies delay or avoid pay transparency altogether. What’s striking is that none of them are about whether transparency is the right thing to do. Almost all of them come down to readiness.

With Australia’s regulatory environment shifting  -  particularly under WGEA  -  readiness is no longer optional.

Pay Transparency - a capability, not a compliance exercise

The real reasons organisations stall

Across our conversations with Australian employers, the same themes consistently emerge:

1. Fear of what transparency might reveal Many organisations know  -  or strongly suspect  -  that there are inconsistencies in pay. The concern isn’t transparency itself, but being unable to clearly explain why differences exist  -  particularly when gender pay gaps are now publicly reported.

2. Weak foundations - Fragmented job architectures, inconsistent role definitions and unclear pay ranges make transparency risky. Without strong foundations, disclosure can raise more questions than it answers  -  a growing concern as WGEA reporting becomes more scrutinised.

3. Cultural discomfort - Pay has historically been treated as private or sensitive. Moving toward openness represents a significant cultural shift, not just a compliance task.

4. Unprepared managersManagers are increasingly expected to explain pay outcomes, gaps and decisions. Many have not been trained or supported to have these conversations confidently or consistently.

5. Leadership misalignment - HR, finance, legal and executive teams may all support transparency in principle, but for different reasons  -  and at different speeds. This misalignment is one of the biggest blockers to progress.

6. Perceived competitive risk - Some leaders worry transparency will make it easier for competitors to poach talent, despite evidence that fairness and clarity improve retention  -  particularly among women and under-represented groups.

7. Competing priorities and change fatigue - With digital transformation, cost pressure and regulatory change accelerating, pay transparency is often deprioritised  -  even as reporting obligations expand.

The common thread: readiness, not resistance

What Korn Ferry’s analysis  -  and our experience  -  makes clear is this: most organisations are not resisting pay transparency because they disagree with it. They are delaying because they don’t yet feel equipped to do it well.

This distinction matters.

Poorly executed transparency can damage trust. Well-executed transparency  -  grounded in robust analysis, structure and narrative  -  builds credibility with employees, boards and regulators.

Why WGEA’s April 2026 targets raise the stakes

From April 2026, Australian organisations with 500+ employees will be required to set, measure and report progress against gender equality targets under WGEA’s new framework.

This shifts the conversation materially.

It is no longer sufficient to:

• Report a gender pay gap once a year

• Attribute outcomes to “market forces” without evidence

• Rely on high-level averages without understanding drivers

Organisations will need to demonstrate:

• A clear diagnosis of what is driving their pay gaps

• Evidence-based targets aligned to WGEA’s Gender Equality Indicators

• Ongoing measurement of progress, not just point-in-time reporting

In practice, this means pay transparency becomes an outcome of readiness  -  not a starting point.

EvenBetter's Pay Equity Analysis is a foundational step for pay transparency

Pay Equity Analysis with EvenBetter

Diagnose before you disclose

The most effective organisations are starting with diagnosis:

• Do you understand the root drivers of your gender pay gap (by role, level, function, tenure, performance and remuneration type)?

• Can you clearly explain which gaps are structural versus discretionary?

• Are leaders aligned on what “fair and defensible” pay looks like in your organisation?

• Can you track the impact of remediation actions over time?

This diagnostic phase is what turns pay transparency from a compliance risk into a leadership capability.

Transparency as a capability, not a compliance exercise

Pay transparency should not be treated as a one-off disclosure or a WGEA reporting obligation. It is the outcome of doing the foundational work: building consistent job architecture, analysing pay rigorously, setting defensible targets, and measuring progress continuously.

As April 2026 approaches, organisations that invest early in this groundwork will be far better positioned  -  not just to comply, but to respond with confidence, clarity and credibility.

At EvenBetter, we see pay transparency not as something to fear, but as something to earn.

Because when organisations truly understand their pay data, transparency stops being a risk  -  and becomes a source of trust, accountability and momentum.