8 posts tagged with "Pay Transparency"

Why pay equity is on every CHRO’s agenda in 2025​

Equal pay is the legal principle that individuals doing the same, similar, or “equal value” work must be paid the same regardless of gender, race or other protected categories. What started because of labour activism in the 1960s and 70s became codified into law as equal pay acts emerged in various countries.

Today, pay equity is directly related to regulation, investor scrutiny, and workforce confidence. Companies with employees in multiple countries (or US states) need to adhere to multiple laws and reporting requirements when it comes to calculating equal pay for equal work and reporting on pay gaps. Failure to do so is an extremely expensive affair and most internal HR teams have neither the staff nor the bandwidth to do this work in-house.

The Dutch government has officially postponed the implementation of the EU Pay Transparency Directive to 1 January 2027 (previously June 2026).

7 September 2025 marks the 9-month countdown to the 🇪🇺 EU Pay Transparency Directive going live.​

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!

Why We're Sharing This​

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.

7 August 2025 marks the 10-month countdown to the 🇪🇺 EU Pay Transparency Directive going live.​

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!

SAN FRANCISCO, Calif., January 28, 2025—Sophare AI, the AI-native compliance platform helping organizations achieve lasting pay equity, today announced a strategic partnership with Locus Technologies, the sustainability and Environmental Health and Safety (EHS) software leader. Together, the two companies are addressing one of the most complex aspects of ESG: social and pay equity.