Pay Transparency: A Strategic HR Opportunity

This directive is a bold move toward gender equality, ensuring equal pay for equal work through enhanced pay transparency and stricter enforcement. ​ 

By June 2027 - with a key milestone for local transpositions in June 2026 – it will mandate employers to enhance transparency in compensation practices, requiring clear communication of pay ranges and empowering employees to request compensation information. This directive is a systematic approach that involves annual reporting on gender pay gaps and corrective measures for unjustified disparities, aligning with strategic HR and corporate social responsibility goals. 

What It Means for Employers

Greater Transparency

• Ensuring fair recruitment, no salary history inquiries, transparent pay ranges upfront, and gender-neutral job postings
• Internal communication on the C&B policy and associated criteria to determine pay levels
• Empowering employees in their right to request compensation information

Greater Reporting

• Gender pay gap indicators to provide annually
• Corrective measures in case of unjustified gap exceeding 5%

Must-haves for Compliance

• Job Classification : Define a “work of equal value”
• Reporting Preparation : Collect data, identify gaps for financial corrections
• HR Processes Adjustment : C&B, performance management, recruitment…
• Change Management : Handle cultural impact, train HR & managers…

Implementing the directive presents several challenges and opportunities: 

HR processes reinforcement

• Offer your HR structure a fresh boost by structuring your job architecture, your performance management and your C&B policy.

Employee Retention

• Enhance engagement and satisfaction through transparent compensation practices and career paths. 

Talent Magnet Effect & EVP

• Use fairness to affirm your DNA and corporate culture, boosting your reputation and aligning with new workforce expectations.

The directive should be central to strategic agendas, offering a chance to transform HR processes and strengthen organizational culture. At Sia we take a voluntarist approach viewing the directive as an opportunity to go beyond compliance. 

Comprehensive Methodology

We offer end-to-end support, from impact analysis to operational deployment, ensuring seamless compliance with the directive 

• In-house tool to assess your maturity level and define priorities 
• Tailored approach to adjust your job architecture, avoiding pay gaps 
• Alignment of HR processes (recruitment, performance, C&B policy, mobility…) 
• Change management & social strategy  

Active Monitoring of Best Practices

Our team stays updated on trends and best practices in pay transparency, providing insights through benchmarking and media engagements. 

Diverse References

We have extensive experience working with HR leaders in large organizations, helping them navigate the complexities of the directive.