With the EU Pay Transparency Directive coming into local legislation from mid-next year, many organizations have started engaging in critical planning to ensure they have a clear definition of work, equitable pay programmes and policies, and a methodology to deliver pay gap reporting. But with just over a year until transparency for employees on the average pay of their peers, many employers risk being caught on the back foot when it comes to communications planning.
In fact, the vast majority (81%) of companies are still establishing how they will provide pay information to employees, according to WTW's 2024 Pay Transparency Survey.
| Employee average pay requests | Pay range on hire |
|---|---|
| 12% on request | 18% job posting |
| 7% proactively provide | 9% during interview process |
| 81% not decided | 72% not decided |
Questions your people may ask:
- Why are men paid more than women (or vice versa)?
- Why am I paid less than the average?
- Why am I paid beneath the advertised range for a role being advertised in my team?
- Why are our pay gaps high?
- Why do we pay less than our competitors?
- Why should I stay?
Next steps to navigate the EU Pay Transparency Directive successfully
The EU Pay Transparency Directive is poised to reshape how organisations handle and communicate pay. Proactive preparation is crucial and businesses should engage business leaders, equip managers and leverage technology to ensure effective and sensitive communication. Delaying communication planning can lead to significant challenges. To stay ahead, organizations should start now by defining their pay philosophy, training managers, and using technology to facilitate transparent and accessible pay discussions. Don't wait until the last minute; take action today to ensure compliance and build trust with your employees.
We can assist in this process by planning, creating and even delivering educational materials. We provide technology to make the disclosure of large amounts of data straightforward and to explain information. Take the first step today by partnering with us to navigate the EU Pay Transparency Directive successfully.
Contacts
Pay Transparency Legislation
Access our resources for legislations around the world
Benefits assessments for EU Pay Transparency
Ensuring your benefit programs stand up to scrutiny, identifying potential gender gaps, and building a robust roadmap for total rewards to thrive in a new age of pay transparency.
