We recently caught up with Anita Lettink, former Fair Barcelona 2024 speaker and now guest-facilitator at Fair Masterclass Amsterdam on the evolving landscape of pay equity in Europe.
With the advent of the EU Pay Transparency Directive aimed at reducing gender pay gaps and mandating more transparent pay practices, regulations seem to tighten and the first reporting deadline in 2027 approaches.
Companies are expected to establish more accountable and fair pay systems.
Technological innovations are playing a key role, with pay equity analysis platforms and people analytics helping identify and address pay disparities effectively.
Dive deeper into this interview to find out the latest must-know on pay gap policies and ways to implement pay transparency, challenges across different regulatory environments and the necessity of a cultural shift within organisations to truly embrace and implement pay equity.
How do you see the future of pay equity evolving in Europe, especially with new regulations emerging in some of its countries?
The European Union has been active in promoting pay transparency and equal pay, and laid down the framework in the EU Pay Transparency Directive. These measures aim to reduce gender pay gaps and mandate that companies share salary ranges with prospective and current employees and conduct pay audits.
Countries that already have regulations (e.g. France) will have to bring them in line with the Directive.
As we get closer to the first reporting deadline in June 2027, companies will be required to establish transparent pay practices, which will likely lead to greater accountability, improved fairness, and more streamlined data on wage discrepancies.
What would be the most promising tech innovations that could help companies more effectively address and monitor pay disparities?
Several tech innovations are emerging to help companies address and monitor pay disparities. Key technologies include:
Pay equity analysis platforms: These tools provide insights by identifying pay gaps in real time, analysing pay data across gender, race, and other demographics. They allow users pinpoint real pay inequities and help them to rectify the root cause.
People analytics platforms: Advanced HR tools that integrate with HR, payroll and benefits systems to continuously monitor pay equity and provide predictive insights for proactive adjustments.
Automation tools for pay auditing: Automated systems reduce human error in analysing data and ensure compliance with local and international pay equity regulations.
What are you bringing to the professionals who will be attending the Fair Masterclass in Amsterdam?
It’s simple: time is running out! If you haven’t yet started your pay transparency project, you need to get this on the agenda.
And this training gives you a complete picture of what you need to do.We’ll start with an overview of the latest regulatory developments.
I will offer practical strategies for implementing pay transparency, and share lessons learned. Establishing pay transparency might seem daunting, but it isn’t hard if you follow the steps! All attendees will leave with a step-by-step action plan.
You can expect: expert guidance on navigating pay equity challenges, tailored to the European market and the EU Directive.
Hands-on workshop with real-world case studies that demonstrate how to conduct pay audits and establish pay equity.
How do you approach the variations in pay equity challenges across different countries, especially between more regulated markets in Europe and less regulated ones?
In European countries, compliance with the law (pay audits and mandatory disclosures) is key, and we must focus on reporting and continuous monitoring. The question then becomes: what will you do for your subsidiaries In less regulated markets? Will they do their own thing? Or do you want to hold them to the same standard? What is fair from a corporate perspective?
One approach is to build a global framework for pay equity that can be localised for each country, ensuring flexibility while adhering to a company's core values of fairness.
Training for HR and management teams on local laws, cultural expectations, and the importance of internal fairness audits is crucial for successfully addressing these challenges.
From your experience, what are the essential cultural shifts that need to happen within organisations to genuinely implement pay equity?
We should not underestimate the cultural shift. In many companies (and countries) it’s not done to talk about pay. In the future, I see companies moving toward personalised, holistic compensation models that go beyond base pay and include benefits, career development opportunities, and work-life balance factors as part of a comprehensive approach to equity.
For organisations to truly embrace pay equity this involves several layers:
Leadership commitment: It all starts at the top. Senior leaders must prioritise pay equity, not just as a compliance issue but as a key business value. This includes being transparent about pay data and addressing disparities proactively. When senior leaders do not embrace pay equity, your pay equity program will not succeed.
Transparency and trust: Fostering an environment where salary structures, promotion criteria, and performance reviews are clear and consistent is essential. Employees should feel empowered to ask about pay without fear of retaliation. Helping managers to have meaningful pay conversations is a key objective.
Inclusive decision-making: Integrating diverse voices in pay-related decisions can reduce unconscious bias and create a more equitable environment. It also contributes to transparency and trust. Make people aware of their biases and give them tools to deal with them.
Ongoing education: organisations should provide regular training on unconscious bias, compensation practices, and diversity to all levels of staff.
Check Anita Lettink's book Equal Pay for Equal Work: A practical guide to implementing a successful pay transparency program. A comprehensive guidebook meticulously crafted to equip visionary leaders with the knowledge, tools, and strategies necessary to implement a robust pay transparency initiative.
Anita Lettink is Guest Facilitator for Fair Masterclass Amsterdam as an expert on pay and rewards.
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