EU Pay Transparency Directive — Is Here!

Organize:

The purpose of this step is to take inventory of relevant aspects in order to conduct a good pay equity analysis and ensure a smooth path to Pay Transparency, such as

• Is there a job architecture in place, and if so, in what condition is it?
• Is there a performance management system in place, and if so, how accessible is the data?
• Is there a salary policy and clear salary criteria in place? Are these updated, relevant, andeasy to understand for both managers and employees?
• Are there salary ranges in place? Are they updated?
• How does the organization use market salary data?
• What are the local legal requirements in the countries of operations

The purpose is to identify strengths as well as weaknesses, help the client prioritize and set a plan in place to ensure readiness for coming steps in the Pay Transparency journey.

In Organize, besides inventorying/prioritizing the current situation, Sysarb support with putting a good structure in place, i.e., a job architecture. We are also able to support with creating a clear Salary Policy and Salary Criteria, Pay Ranges, provide Market Salary Data, as well as all other aspects that are relevant in the journey to Pay Transparency.

Analyze and Report:

Through our proven process, Sysarb are supporting our clients with conducing thorough pay equity analyses. Pay Equity is in our DNA, and our experience combined with our tested approach ensure that that pay gaps are analyzed systematically and according to best practice.

We also continuously scan the globe for local legislative requirements. Once established, we are able to provide guidance on local adaptations of the EU PTD and create the reports that are required by local regulations.

Optimize:

The purpose of this step is to move from insights gained in the previous step, to meaningful actions. It involves allocating resources in an optimal way given the results of the pay equity analysis and the available budget.

In addition, having updated Pay Bands and solid Market Data is also vital in order to optimize resources. Also, in some jurisdictions companies are required by law to conduct Active Measures to prevent any kind of discrimination.

Sysarb has long experience and a proven method that supports our client with all of the above.

Visualize and communicate:

This step aims to visualize, communicate, and explain structures, policies, pay gaps, and action plans in a way that is tailored to different stakeholders (employees, managers, Talent Acquisition, authorities, unions, the public, etc.).

In this step, we help the client meet the requirements for transparency and accountability, as well as facilitate the cultural and knowledge shifts needed when opening up for transparency in pay setting.

Authorize:

The purpose of this step is to decentralize the ownership of salary setting and empower the managers in the organization to set the right salary from the start. This is to proactively prevent pay gaps from arising.

A decentralized ownership and empowerment demands a solid understanding of Pay Setting, legal requirements, the organizations policies and Salary Criteria etc. Sysarb is able to support with e-learning, digital and classroom education optimized for different stakeholders such as HR, managers and the unions.

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