Four recommendations for the successful implementation of the Pay Transparency Directive

Pay transparency is coming! Together with our collaboration partner EAF Berlin, we would like to present four recommendations for action that will help you to successfully implement the Pay Transparency Directive:

1. Start proactive gender-equitable data analysis - Now!

Don't wait until the directive is finally transposed into German law. Start systematically analysing your salary structures today - taking various diversity dimensions into account. Our PAY_transparency and FAIR_solution software tools can help you not only to identify gender-specific pay differences, but above all to pinpoint the causes of possible unequal treatment. Data-based options for action are also identified. This comprehensive inventory and analysis of your structures using AI gives you a head start and enables you to close any pay gaps gradually and within budget.

2. Develop transparent and inclusive remuneration systems

Check your existing remuneration systems not only for transparency, but also for inclusivity. Our science-based KI FAIR_solution systematically analyses your pay structures, taking into account various diversity dimensions, and identifies structural causes. Use these findings and scrutinise whether your criteria for salary determination are truly neutral. Seemingly objective criteria such as ‘continuous professional experience’ can, for example, penalise people who have had to take career breaks due to caring responsibilities. Train your managers in dealing with salary discussions and sensitise them to possible patterns of discrimination. A transparent and inclusive system not only protects against legal risks, but also increases employee satisfaction and loyalty.

3. Shaping change management as a participatory process

Accompany the transformation process with participatory change management that includes all voices in your organisation. Create safe spaces in which people can also talk about discrimination they have experienced at work. Work together to develop a positive change narrative that emphasises the benefits of pay transparency and fairness for everyone involved. Such a bottom-up approach can reduce resistance and increase acceptance of change.

4. Establish long-term governance structures

Fair pay is an ongoing process. Establish permanent responsibilities for this topic. Form an interdisciplinary team that regularly monitors progress and makes any necessary adjustments. Integrate pay equity into your key performance indicators and make it an integral part of your corporate reporting. Use PAY_transparency and FAIR_solution for regular analyses and rely on external advice to avoid white spots. Make progress visible and celebrate successes - this motivates everyone involved to continue on the path you have chosen.

Conclusion: Pay equity as part of a comprehensive equality strategy

Companies and organisations that proactively address the above-mentioned challenges benefit from increased employer attractiveness, improved employee retention and a competitive advantage in talent recruitment. Ultimately, greater pay equity leads to employees identifying more strongly with the company and therefore to higher productivity, innovation and creativity.

The time to act is now - use the transition phase until the directive is fully implemented to optimise your company's position and turn the legal requirement into a strategic advantage.

Start analysing your pay structures now and let's work together to create a working world in which equal pay for all people - regardless of gender, origin, sexual orientation or disability - becomes a reality.

In our cooperation with EAF Berlin, we, INES Analytics, combine our science-based AI FAIR_Solution and PAY_transparency with expert advice on organisational development from EAF Berlin. We are convinced that this holistic approach not only ensures the fulfilment of legal requirements, but can also initiate a profound change in work and management culture.