"With our structured 4-step approach, we provide companies with pragmatic and sustainable support in implementing the EU Pay Transparency Directive – from analytical job evaluation to robust remuneration structures."
Implementation of the EU Pay Transparency Directive – structured, pragmatic, and sustainable
The EU Pay Transparency Directive places new demands on companies—but at the same time offers the opportunity to make remuneration structures more transparent, fair, and sustainable.
We support organizations in implementation with a practical, clearly structured approach. Our approach is based on a 4-step process that provides guidance and enables sustainable results.
1. Project essay
At the outset, we establish a shared understanding of the target vision, requirements, and project scope. In a kick-off workshop, we clarify goals, roles, and timelines so that everyone involved is working toward the same objectives.
At the same time, we gain an overview of the status quo: existing job descriptions and compensation structures are reviewed, and initial quick checks are carried out to assess maturity. This creates a solid foundation for the subsequent project phases.
2. Function descriptions
In the second step, we develop standardized, up-to-date job descriptions. In many companies, these vary greatly in scope and quality or are no longer up to date.
For this reason, all relevant functions are being restructured and redefined in consultation with HR and management. This will enable us to create a reliable information base for analytical job evaluation.
3. Analytical job evaluation
We conduct an analytical job evaluation based on the job descriptions. The aim is to systematically identify equal and equivalent work—as required by the directive—and make it comparable internally.
Job evaluation forms the basis for subsequent equal pay analyses. Through validation with HR and calibration rounds with managers, we ensure a high level of acceptance and transparency within the organization.
4. Analyses & remuneration bands
In the final step, we analyze existing remuneration structures, identify potential pay gaps, and assess equal pay risks. This enables us to fulfill the reporting requirements of the Pay Transparency Directive.
Important: Compensation analyses only deliver reliable results once identical and equivalent work has been clearly identified. The preparatory work is therefore crucial—before you dive into the figures.
Based on this, we develop clear remuneration principles, define salary bands, and derive specific recommendations for action. In addition, we provide support in establishing relevant processes and policies to ensure that the new structures are firmly anchored in the company. A final report summarizes the results.
What is needed for successful implementation?
Our 5 success factors
Analytically evaluating several hundred functions within a company using uniform criteria, documenting them in a comprehensible manner, and linking them to compensation data is a real challenge for many organizations. Systemic support can help here. Suitable systems ensure that job evaluations are carried out consistently, objectively, and transparently, and form a reliable basis for further analysis.
Early involvement of co-determination builds trust and acceptance throughout the entire process. It helps to take different perspectives into account, identify risks at an early stage, and avoid delays in implementation.
The introduction of analytical job evaluation is not a sure-fire success. It requires the active cooperation of HR and managers. Clear commitment from management is therefore a key success factor. Our experience shows that once the benefits of job evaluation are recognized, management is willing to actively support the process, make clear decisions, and provide the necessary resources.
Existing HR and compensation processes must be reviewed and specifically adapted. This raises questions such as: When is a job reevaluated? How are employees classified within salary bands? And how are changes documented in a comprehensible manner? These and other aspects require newly defined processes. Only with clear, integrated procedures can it be ensured that the new requirements are permanently anchored.
Consistency is crucial for sustainable success. For example, newly defined salary bands should continue to be applied consistently in the future. Any deviations should be justified, explained transparently, and clearly documented. Consistent application of the rules builds trust among employees and ensures that transparency and fairness are actually practiced in the long term.
Why do we rely on our strategic partner gradar?
We often work with the gradar software tool in our projects. The system enables analytical job evaluation based on objective and gender-neutral criteria and complies with the requirements of the EU Pay Transparency Directive.
Gradar is intuitive and easy to use. Compared to other system providers, the solution is also cost-effective. The system supports analytical job evaluation as well as salary and equal pay analyses. Once the project is complete, our customers are well prepared to continue using gradar independently and to maintain their job and compensation structures in the long term.
If you would like to learn more about our system partner and the system itself, please click here: https://www.gradar.com/de
