EU Pay Directive Changes the Rules of the Game. Are You Ready?

“Are we paid enough? Are our salaries fair? Was I previously underpaid?”, those are the questions that went through Anita Lettink’s mind when she received a generous raise, and immediately after, a second one, because, as she says, “someone finally aligned my salary with colleagues at the same level.” And this is not just her story. It is the story of all of us.

In her lecture,** “From Directive to Practice: Mastering Pay Transparency in Your Organization”**, held as part of the HR Days conference, Anita opened up a topic that everyone is talking about today: pay transparency. It is quickly becoming clear to us that today we are no longer talking about "will we talk openly about pay," but rather "when and how we will do it."

We are entering the era of transparency 

People are no longer silent. They are sharing their earnings on forums, social networks, and in groups. Companies are increasingly publishing salary ranges directly in job advertisements. And this is not a trend, it is a direction. 

Because salary is still the main reason why someone accepts or rejects an offer, emphasizes Anita. Before a person even steps into your culture, team, or office, the only thing they know is how much you will pay them.

“That's why you mustn't forget that factor. You can have the best team in the world, but without a fair and clear approach to pay, people won't even come to you,” she adds.

In such a climate, companies that are more open report a higher level of employee engagement. Transparent communication increases employee engagement from 39% to 72%. And that is the difference between surviving and growing.

The EU says it is time for balance 

The European Union introduced the Pay Transparency Directive, which will become mandatory for all larger organizations in the coming years. And this is not just a legal formality, but a serious obligation that requires deep preparation. 

The Directive stipulates: 

  • that companies with more than 100 employees must regularly report on gender pay differences,
  • that differences greater than 5% must be explained and corrected,
  • that candidates have the right to know the salary range even before they attend an interview,
  • i da zaposlenici mogu zatražiti informacije o razini svojih primanja u odnosu na druge na istoj poziciji. 

Anita's advice? “Don't wait until the last deadline because you won't make it.”

The first step is not publishing salaries, the first step is collecting data, standardizing it, and then brutally honest analysis. Because when you discover that the differences between men and women are greater than you thought, someone will have to pay for it. And that is most often the company. 

That is why it is crucial to start on time.  

“The sooner you review the data and show it to the management, the easier it will be for you,” she explains.

 According to Anita, transparency is not a copy-paste spreadsheet. It requires a job structure that is measurable, comparable, and clearly defined. Skills and experience are compared, not age, seniority, or likeability. 

If you are not open about pay, people will assume the worst 

One of the most interesting moments of the lecture was when Anita shared the data that employees believe that pay differences are 2 to 3 times worse than they actually are. In other words, if you don't communicate, your people will tell themselves a story. And probably the worst possible one.

As many as 68% of employees are ready to change jobs if a new company offers greater pay transparency. Although publishing salary ranges in job ads might result in fewer applications, it attracts more relevant candidates—those who know what they are looking for and want to work in an environment that plays openly.

If you are not open about pay, people will assume the worst 

One of the most interesting moments of the lecture was when Anita shared the data that employees believe that pay differences are 2 to 3 times worse than they actually are. In other words, if you don't communicate, your people will tell themselves a story. And probably the worst possible one.

As many as 68% of employees are ready to change jobs if a new company offers greater pay transparency. Although publishing salary ranges in job ads might result in fewer applications, it attracts more relevant candidates—those who know what they are looking for and want to work in an environment that plays openly.

Transparency is a path, not a punishment 

The message of Anita's lecture was clear: don't be afraid of pay transparency. Prepare for it. If you start on time, you will get the opportunity to correct things, show responsibility, and strengthen trust. If you wait until the last moment, you will be exposed, unprepared, and perhaps forced to correct injustices under pressure. 

Transparency does not mean perfection. But it means a readiness to do things more fairly. It means a culture where people know where they stand, what they are worth, and that they are valued for what they bring, not for who they are or what gender they are. 

    *By submitting your e-mail address you agree to receive news about HR Days conference. You can unsubscribe at any time by clicking the 'Unsubscribe' button.

    This will close in 0 seconds