With the EU Pay Transparency Directive coming into force in June 2026, SMB companies across Europe are facing a fundamental shift in how they approach compensation. One of the most critical (and often overlooked) foundations for compliance and equal pay reporting is a clear, consistent job architecture.
The idea for this article was sparked during a conversation with Andrew Noto, author of People Matters.
🔗 Read the full article on People Matters here!
As a movement, pay transparency has grown from a fringe idea into a standard regimen for compensation teams globally.
If pay transparency were a stock you could have bought 20 years ago, it would look a lot like Apple (up 108,850%) or Nvidia (up 129,131%) today.
Back then, both companies were underrated and seen as niche and maybe even risky. But if you had invested early, you would have seen exponential power-law returns.
Pay transparency is on the same trajectory, both in terms of the amount of data that is being produced and the returns for employers who
proactively define their compensation strategies in the era of pay transparency.
Pay transparency is no longer theoretical. It is law in major U.S. states such as New York, California, Colorado, and Illinois, where employers are now required to publish salary ranges in job postings. For HR leaders in Europe and in U.S. states where disclosure is not yet mandatory, this trend is a glimpse of the near future. The data is clear: transparency reshapes recruitment outcomes, boosts employer credibility, and closes wage gaps. Companies that prepare now will find themselves not just compliant but ahead of competitors in attracting and retaining the best talent.
The EU Pay Transparency Directive (Directive (EU) 2023/970) introduces new rights for employees to obtain information about pay, and is aimed at enforcing equal pay for equal work between men and women. A key provision is that workers will have a “right to information” (Article 7) about their own pay and how it compares to the pay of peers in similar roles.
August also marks the peak of the holiday season across Europe, a time when many HR professionals are understandably more focused on vacations than upcoming EU Pay Transparency Directive compliance deadlines. With many teams running at a slower pace, now is a rare window to tackle the low-lift, high-impact groundwork for the EU Pay Transparency Directive. The directive goes live across member states on 7 June 2026, but smart, early action this summer can help prevent a last-minute scramble next spring. You don’t need to choose between taking time off and getting ahead. In fact, August is ideal for both. Don’t let August slip away into a moment in time–yes, like the Taylor Swift song!