Two-fifths of companies are preparing for EU Pay Transparency Directive, according to WTW poll

LONDON, May 15, 2024 - Just over two-fifths (44%) of employers have started planning for the EU Pay Transparency Directive, while just over one in five (21%) have not made any preparations, leading up to the 2026 deadline, which is on the up since last October. That’s according to a poll by WTW, a leading global advisory, broking and solutions company.

Other companies have taken steps to engage stakeholders (17%), run analytics (13%) or start broader pay management actions (5%).

As the pay transparency directive approaches, employers’ say their greatest challenges are around reporting requirements (26%), developing an action plan in line with EU requirements (26%) and identifying gaps in current gender pay or rewards management (18%).

Yet, employers are less concerned about developing engagement and communication materials and building out project team structures, roles and responsibilities.

The EU Pay Transparency Directive gives employees extensive new rights to information about their own pay and the pay of male and female peers, meaning that employers will need to deliver transparency around equal pay by law.

In practice this means:

• Job levelling and architecture is robust to allow reliable identification of employees doing same or similar work or work of equal value.
• Pay policies on recruitment, promotion and annual review are robust and any differences in male and female pay decisions are for objective reasons.
• The relevant data is available and analytics are being carried out on a regular basis to understand current state and track progress.
• Managers and employees are being educated on pay, to provide a firm base for additional transparency.

Eva Jesmiatka, Pay & Career Equity Lead at WTW says “It’s important that employers put steps into motion to address any pay transparency challenges as soon as possible. Conducting a readiness check which carries out initial analytics and an evaluation of current pay structures, policies and practices can be used to build a roadmap and an approach to communications in line with the desired employee experience. This will help companies be ready ahead of any teething challenges.”

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It’s important that employers put steps into motion to address any pay transparency challenges as soon as possible.”

Eva Jesmiatka | Pay & Career Equity Lead at WTW

About the Poll

A total of 330 poll responses were received on our webcast “The EU Pay Transparency Directive – What a difference a year makes” held on 24 April 2024. Respondents were from 27 countries around the world, and 14 different industries.

About WTW

At WTW (NASDAQ: WTW), we provide data-driven, insight-led solutions in the areas of people, risk and capital. Leveraging the global view and local expertise of our colleagues serving 140 countries and markets, we help organizations sharpen their strategy, enhance organizational resilience, motivate their workforce and maximize performance.

Working shoulder to shoulder with our clients, we uncover opportunities for sustainable success—and provide perspective that moves you.