In this latest edition of Turbocharging HR, Tom Hellier and Eva Jesmiatka examine the current state of EU Pay Transparency Directive transposition and what companies need to focus on next.
HR has always been at the forefront of change. With AI now woven into the fabric of our daily lives, how does technology elevate the foundations of reward? More than three years have passed since the EU Pay Transparency Directive was approved by the European Commission, yet remarkably little has happened. Few member states have transposed the directive into national law and a growing number are announcing delays.
For companies, this has created a dangerous comfort zone. Many have adopted a "wait and see" approach, telling themselves they will prepare once individual member states provide clearer guidance. The problem, as Eva Jesmiatka explains, is that they are still waiting and the draft transpositions that are emerging are not providing the clarity companies were hoping for.
Key discussions include:
- Job levelling frameworks with increased emphasis on having a robust, gender-neutral job evaluation approach
- Cyclical pay gaps are a common pattern seen in annual pay equity analyses is that companies identify unexplained gaps, fix them, and then discover new unexplained gaps the following year
- Objective reasons for difference where works councils and employees will scrutinise these factors, asking harder questions about what the organization actually rewards for and whether those justifications hold up
- Pay transparency is not a one-off compliance project, it is a permanent operating condition that requires continuous management
Whilst there are delays to transposition, it's given organizations a chance to be ready and fully prepared for pay equity and transparency.
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