Survey highlights
- Just one in five respondents (21%) have taken significant steps to prepare for the EU Pay Transparency Directive
- Almost half (48%) say job evaluation and grading is their biggest challenge
- Employer sentiment has dipped: only 20% now expect a positive impact, down from 31% in April
The survey of more than 200 HR professionals was conducted at a joint webinar with people consultancy, HR Path. Three in five employers (61%) said they have taken ‘some’ steps to prepare for the new rules, while a fifth (19%) have yet to take any action at all.
Watch our EU Pay Transparency webinar as CPD on Demand
The legislation is expected to be introduced in phases, following Ireland’s missed transposition deadline of 7 June this year.
Almost half of respondents (48%) identified job evaluation and grading as their biggest challenge in preparing for the Directive. Legal interpretation was cited by 27%, and a quarter (25%) pointed to data and systems readiness.
Catherine O’Flynn, Partner, Employment Law & Benefits, said:
Most employers have started taking preliminary steps, but only one in five have made substantive changes to how they deal with pay. That leaves considerable work for the wider market. The legislative timeline in Ireland has slowed, but the compliance requirements haven't changed, and employers will face significant internal restructuring once domestic law lands.
We're working with clients now to classify roles, build job frameworks and ensure that pay decisions are based on objective criteria. Organisations that start that work today will avoid a last minute scramble once the legislation is published."
The survey found that salary transparency remains far from standard practice in recruitment. More than half of employers (54%) said they do not currently disclose salary information in job advertisements. Just one fifth (20%) always publish pay bands, while 26% do so occasionally.
In addition, 53% of respondents said they are not currently comfortable with employees discussing salaries with colleagues.
Sarah McDonough, Director of Business & People Consulting at HR Path, said:
Publishing pay bands is a big change to how most organisations currently approach recruitment. External visibility instantly exposes internal pay gaps. Without documented job structures, businesses are exposed to equal pay challenges and risks. Employers who do the groundwork now, before publication becomes mandatory, get to fix gaps on their own terms."
Employer enthusiasm for the upcoming regime has dampened since our previous poll in April. Only a fifth (20%) now expect the rules to exert a positive impact on their organisation, down from 31%. A quarter (25%) see the rules as an unnecessary administrative burden, compared with 21% previously, while more than half (55%) anticipate a neutral effect – up from 48%.
Lucy O'Neill, Senior Associate in our Employment Law & Benefits team, said:
Some of that scepticism comes from a misconception about what the Directive actually gives employees access to. Colleagues won't see exactly what a named individual earns. They will be able to access average pay levels, broken down by gender, for people doing the same work or work of equal value, not one another's individual salaries. Once employers understand the actual mechanics, the compliance burden tends to look more manageable."
For more information and expert advice on employment law developments affecting your organisation, contact a member of our Employment Law & Benefits team.
