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Forbes
5 days ago
- Business
- Forbes
What The EU Pay Transparency Directive Really Means For Day-To-Day Work
Hayley Bakker is the Head of Customer Journey & Digital Enablement at beqom, which supports pay equity with data-driven software. The EU Pay Transparency Directive, formally adopted in 2023, is a landmark law aiming to ensure that workers of all genders receive equal pay for work of equal value. It applies to EU-based companies with 100 or more employees and focuses on two key areas: pay transparency and pay equity. But this is more than a regulatory shift. It's a cultural one. Provisions like the right to know salary ranges, mandatory gender pay gap reporting and bans on asking about previous salaries are meant to close the gender pay gap. But beyond compliance, what does this mean for day-to-day work, employee-manager conversations and internal pay systems? Here's how these changes impact every level of an organization. 1. Employees Gain Visibility And Empowerment For employees, the most noticeable change is access to information. The directive gives them the right to request average pay levels for their job category, broken down by gender. Employers must publish salary ranges in job postings and be clear about pay progression criteria. This transparency shifts the balance of power and changes how employees approach hiring, promotions and salary discussions. Take Anna, a marketing manager who's spent five years at a tech firm in Madrid. She sees that her company's posted a replacement position, similar to her role. The posting includes a salary range, and when comparing this to her own pay, Anna realizes she's being significantly underpaid. When her next one-on-one with her manager arrives, she confidently raises the issue. This type of conversation might not have happened before. Transparency empowers employees to ask informed questions and expect informed answers. 2. Managers Have A New Level Of Accountability Managers must be ready to address tougher, more-informed compensation questions. Pay conversations can't be vague or take place once a year. Under the directive, managers are now accountable for fairness in pay decisions and must justify compensation using objective factors like role scope, performance and internal bands. Managers must become fluent in pay principles. For example, when Anna asks Daniel, her manager, why her salary is below the midpoint of the posted range, he can't give a generic answer. He needs to have a clear, policy-aligned explanation. Responses like 'That's just what we offered' are no longer sufficient. Companies must train managers to speak factually and consistently about compensation—or risk losing trust and talent. 3. HR Business Partners Are Coaches For Fair Pay HR business partners (HRBPs) play a vital role in turning pay policies into fair, everyday decisions. Part of their responsibility is coaching managers before pay reviews, guiding them through pay policies and helping identify bias in decisions. HRBPs also run pre-review checks to flag pay decisions that don't align with policy. For instance, at the tech firm where Anna and Daniel work, John is the HRBP who conducts department-wide compensation audits ahead of a pay cycle. He works to identify employee pay outliers that need justification or adjustment, and he helps managers like Daniel either explain or correct discrepancies. It's not just about fixing problems. It's about promoting intentional, defendable decision-making and embedding fairness in daily practices. 4. Compensation And Pay Equity Teams Drive Data-Backed Action The directive requires companies with more than 100 employees to report gender pay gaps. If gaps exceed 5%, then companies must conduct joint pay assessments. So, compensation and pay equity teams will be playing a much more visible role in the future. These professionals must develop grading systems, track analytics and guide corrective actions. For example, Lisa is a pay equity lead at the tech firm. She's created dashboards to show unexplained pay differences by gender and job. It's a tool that helps HRBPs and managers quickly spot and resolve inconsistencies. When a manager proposes a raise, they can see how it fits within internal pay equity models, ensuring fairness in real time. In a world where employees can ask, 'Why am I paid this?' having credible, data-backed answers is essential. 5. Leaders Set The Tone For Championing Transparency Executive leadership must actively model transparency and equity. That means setting clear pay equity goals, investing in tools and training across departments and speaking openly about pay structures and criteria. Some companies are already publishing pay equity goals and hosting internal Q&As where leaders explain pay philosophy and criteria. Others are working with consultants to understand their gaps and improve systems. When leaders are visible in these efforts, pay transparency becomes a shared value—not just a legal obligation. Compliance Is Just The Start The EU Pay Transparency Directive takes full effect in June 2026. But the opportunity lies in using it to lead a cultural transformation. Successful organizations won't just post salary ranges. They'll train managers, empower employees and build systems that support fair, consistent and data-driven pay decisions. Transparency isn't about revealing decisions. It's about standing behind them. Is your organization ready? Forbes Human Resources Council is an invitation-only organization for HR executives across all industries. Do I qualify?
BBC News
17-07-2025
- Business
- BBC News
Equal pay claim could cost Bradford Council millions, says union
Equal pay claims involving hundreds of council staff could end up costing a cash-strapped local authority "millions of pounds", a union has Union said staff at Bradford Council had been in touch about claims the authority was reportedly paying staff in mainly male departments more than staff in mainly female departments. The union accused the council of "burying their heads in the sand" and said if the complainants were successful, their pay claims could be backdated for up to six years. A Bradford Council spokesperson said it was in discussions with the union and staff. Lou Foster-Wilson, GMB Organiser, called the situation "shameful" and said that members were angry at being "short-changed". She also said hundreds of claims were "piling hundreds more to follow". "The longer it takes to settle these claims the bigger the bill Bradford Council will have to pick up," Ms Foster-Wilson added. The dispute relates to claims staff in female-dominated roles, such as teaching assistants, have historically been underpaid in relation to those in male-dominated positions. 'Right thing' According to the Local Democracy Reporting Service, a council spokesperson said: "People are at the heart of what we do in Bradford, and our commitment to equality and inclusion is a big part of that. "We have well established procedures for discussing many matters with the trade unions and we continue in discussion with them to understand any issues their members may have."Ms Foster-Wilson added: "I urge the council to do the right thing by our members and its workforce and get round the negotiating table, so we can sort out a settlement for our members as soon as possible."In 2024 Birmingham City Council agreed to pay 6,000 of its workers a settlement after an unequal pay row. It was said to be one of the key factors in the authority declaring effective bankruptcy the year before when it said it was facing a bill of £760m to settle the claims. Listen to highlights from West Yorkshire on BBC Sounds, catch up with the latest episode of Look North.
Irish Examiner
10-06-2025
- Business
- Irish Examiner
New gender pay gap reporting rules expand to more Irish businesses in 2025
This year, for the first time, businesses with 50 or more employees are legally required to report their Gender Pay Gap (GPG). Until now this was only a requirement for businesses employing more than 150 employees. And while this is a significant change it's also a positive move for society, it will help ensure pay equity is embedded right across the labour force. To help organisations in meeting this requirement, the Department of Children, Disability and Equality is launching a new portal this autumn. This will make it easier for employers to file their reports and for the public to view them. Far more than a compliance task, GPG reporting is a hugely positive step towards workplace gender equality. It allows employers to acknowledge the gaps between their employees and take steps to address the underlying issues. Of course, by law, people doing the same work must get the same pay. But the gender pay gap refers to the difference in the average hourly wage of all the men and all the women, in any organisation. For example, if an employer has more executive staff who are men and more junior staff who are women, a clear gender gap will exist. Simply reporting on gender pay helps employers to view their employees through an important lens, helping to ensure there is a balanced mix of men and women at every level. If there isn't a balanced mix of employees, GPG reporting can help employers to understand why not. For example, it could be that their recruitment policies need to be reassessed; that stereotyping or unconscious bias is leading to the promotion of one gender over the other; or that roles are being structured without reference to a work life balance, caring responsibilities or family leaves. If efforts to close the gender pay gap globally were to continue at their current rate, it would take women 134 years to reach full parity Research from the European Commission shows women in the EU earn on average 13 per cent less than their male counterparts. In Ireland EU estimates for 2023 found women earned on average 8.6 per cent less than their male counterparts. This is an area we are now starting to get clarity on, thanks to the 2021 Gender Pay Gap Information Act, which requires organisations to report on their GPG each year. The gap is typically lower for new labour market entrants but widens with age, often as a result of career interruptions that women may experience during their working life. Closing the gap is not just important for today but for tomorrow too. A 2019 analysis from the Economic and Social Research Institute, covering data collected throughout the 2010s, found that women retired earning 35 per cent less than their male counterparts, which has a significant impact on their income in retirement. If efforts to close the gender pay gap globally were to continue at their current rate, it would take women 134 years to reach full parity, according to the World Economic Forum. This is why the move to include organisations in Ireland with 50 or more employees is essential. As the figure has changed from 150 employees last year, and 250 employees in 2022, a much clearer picture on pay will emerge. That's good news for employers, existing employees and job seekers too. How does it work? Businesses and organisations that employ more than 50 people can select any date in June 2025, and submit their Gender Pay Gap (GPG) report within five months of that date, before the 30th November. If a business chooses a date in June, for example, it must then calculate the number of employees on this date and their entire remuneration for the previous 12 months. For each employee, that includes total ordinary pay as well as any bonuses or benefits in kind received over the preceding 12 months. Based on this information, the employee's hourly pay can be calculated. The Department of Children, Disability and Equality's new central portal will allow for a comparison of GPG data across different sectors, industries and levels of seniority. All employer reports can be easily uploaded and can be accessed publicly. The portal will be available in Autumn 2025. Kathleen Linehan, group strategic director of human resources at the Trigon Hotels Group in Cork is looking forward to uploading its gender pay gap report this year. The company includes much loved hotels such as the Metropole and Cork International Hotel. As someone who is passionate about ensuring diversity, equity and inclusion in the workplace – Linehan is a cousin of disability rights activist and former sports journalist Joanne O'Riordan – GPG is a metric she already tracks. The Trigon Hotels Group in Cork includes much loved hotels such as the Metropole and Cork International Hotel. She joined the company in 2019, from a lean manufacturing background, and is a long-standing believer that you can't manage what you can't measure. 'Every single thing we do in our HR department is data driven,' she explains. 'We have monthly HR reports in which we include the gender balance in our departments, as well as the mix of nationalities we have, so that we have diversity of thought and better mixing.' One of her first steps on joining was to introduce a structured, transparent pay scale, as well as training and development to support staff in their career progression. With 240 staff spread across three separate commercial entities, it is only this year that each hotel comes under the new reporting obligations. 'We already have all the information we will require because this is something we've been working on all the time,' she says. 'I was only pulling out our data on this last week and took enormous pleasure in seeing the great balance we have so I only see gender pay gap reporting as a positive.' For more information, visit
Yahoo
03-04-2025
- Health
- Yahoo
Medical center agrees to conduct a pay equity study amid discrimination allegations
This story was originally published on HR Dive. To receive daily news and insights, subscribe to our free daily HR Dive newsletter. A nonprofit medical center in California agreed to pay $195,000 to settle allegations that it paid a female physician assistant less than her male counterpart for performing a similar job, despite the male physician assistant not having prior experience, according to a U.S. Equal Employment Opportunity Commission news release issued Tuesday. An EEOC investigation found that the employer, Tiburcio Vasquez Health Center, paid the physician assistant who filed an EEOC charge of discrimination, as well as two other women, less than the male worker from about April 2022 through August 2023, the federal agency said. The alleged pay discrepancy violates Title VII of the Civil Rights Act of 1964, which prohibits compensation discrimination on the basis of sex, and the Equal Pay Act of 1963, which requires employers to pay equal wages to women and men who perform similar jobs, per EEOC. The medical center could not immediately be reached for comment. 'This is a good reminder for all employers to set objective criteria when making compensation decisions and to apply those criteria consistently,' Margaret Ly, director of EEOC's San Jose local office, said. 'Instead of basing pay on factors such as prior salary that may be discriminatory, employers should independently evaluate an individual's job-related qualifications.' The agency learned of the alleged discrimination after the female physician assistant filed an EEOC charge of discrimination in July 2023 against the medical center, which operates 15 health centers and clinics. 'It was important to question why I and other women were being compensated less than our male counterpart for performing comparable work,' the filing physician assistant said. 'I am grateful to the EEOC for upholding our right to equal pay. I hope this case encourages others who find themselves in similar situations to advocate for their rights.' Through the pre-litigation conciliation process, the employer agreed to a two-year plan under which it would provide compensatory damages, revise its nondiscrimination policies, conduct a pay equity study and provide training, among other requirements, EEOC said. EEOC outlines tips for employers to prevent pay discrimination, such as making sure managers involved in pay decisions document their decisions about pay and bonuses, retaining those records and consistently applying compensation criteria. The agency also recommends that employers maintain records that explain differences in pay between male and female workers. Progress on shrinking the gender pay gap has stalled in the U.S., even as the number of pay transparency laws climbs, according to Payscale's recent Gender Pay Gap report. In 2025, women earn 83 cents for every dollar men make, a gap that widens as women age, per the report. Sign in to access your portfolio
