Aon, on salary transparency companies must act now
The EU directive calls for an initial reporting by 2027. 45% of companies are aware of the topic but have no set plan and 53% have not conducted a pay equity analysis
(Il Sole 24 Ore Radiocor) - By the second half of 2027, companies with more than 100 employees in any EU Member State will have to submit their first report in line with the EU directive on pay transparency. Although the first reporting deadline "may seem a long way off, companies need to act now, understand the regulations, assess their current position, create an action plan, implement tools and frameworks, act on gaps, build reporting structures and develop communication strategies," says Olga Pagliaroli, Head of Talent Solutions at Aon. This is also emphasised in the Guide to the EU directive on pay transparency, published by Aon.
How ready are companies?
45% of companies have a general awareness but no set plan, 41% say they are working on planning, only 6% have a structured plan in place and only another 6% have a clear plan they are implementing. 2% have no awareness at all. These are the results of a pay transparency analysis conducted by Aon in 2024, which received over 200 responses from a wide range of companies with employees both inside and outside the European Union. In addition, 53% of respondents have not conducted a pay equity analysis, 58% currently do not communicate pay ranges to employees and 78% do not publish pay ranges during recruitment
The Opportunities of the Directive
«I potenziali vantaggi vanno ben oltre il semplice evitare le multe. Si tratta di un'opportunità per le imprese di creare politiche di premio più eque e meritocratiche, valorizzare le strategie di Diversità, Equità e Inclusione, creare percorsi di carriera più coerenti e attrattivi e trasformare la gestione dei talenti». Tuttavia, «i rischi di non conformità sono elevati, sia dal punto di vista finanziario che dal punto di vista reputazionale». Il rispetto dei termini della direttiva coinvolgerà una serie di stakeholder, tra cui dirigenti, Hr e manager di area. L'elenco delle azioni è lungo e variegato, dall'analisi dei dati retributivi attuali alla riprogettazione delle architetture lavorative e al supporto dei manager di linea nelle discussioni relative alle retribuzioni. La trasparenza retributiva e la comunicazione sul divario retributivo di genere non sono però limitate all'Ue. Le aspettative e la legislazione stanno accelerando a livello globale, con iniziative negli Stati Uniti,
Long-term pay transparency
While companies will focus on the 2027 deadline to comply with the Directive, employers need to prepare for both the short-term effects of its implementation and its long-term impact, Aon explains. As pay transparency evolves, organisations may face wage inflation, employee relations difficulties, demands for pay parity, and delicate conversations between employees and area managers. But these are all likely to be the results of existing problems, poorly designed processes, and inconsistent work architectures. Robust change management processes can help employers manage these short-term consequences. In the long run, the more organisations make gender pay equity part of their corporate culture, the greater the impact on DE&I strategies, talent management, and the Employee Value Proposition (EVP).
