Pay transparency1 min read158 words
The pay-transparency directive — what to do before 2027.
New disclosure and reporting obligations will affect technology companies too. The sooner you tidy up your pay policy, the less painful the adjustment will be.
New disclosure and reporting obligations will affect technology companies too. The sooner you tidy up your pay policy, the less painful the adjustment will be.
The pay-transparency directive introduces obligations around pay transparency as early as the recruitment stage and during employment. For technology companies, which often work with wide bands and individual negotiation, that’s a significant shift in how to think about pay.
What changes
Candidates gain the right to information about the band before the interview. Employees — the right to information about the criteria for setting pay and raises. Companies above certain thresholds — reporting obligations on the pay gap.
- Review and tidy up the structure of pay bands
- Define objective criteria for setting pay
- Prepare a process for informing candidates and employees
- Check whether the company exceeds the reporting thresholds
The hardest part isn’t compliance itself, but tidying up historical pay decisions made without uniform criteria. That’s work you can’t do in the week before the deadline.
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