What do baby photos have to do with fair pay? More than you might think.
Imagine you find two lost wallets with cash inside — but one of them contains a baby photo. Which one would you return first? Most people choose the one with the photo. Why? Because we’re wired for empathy and fairness.
This instinct to prioritize fairness is deeply human. It’s why we react strongly when we feel something isn’t right — like when pay practices don’t feel fair. But here’s the thing: our brains make unconscious calls. And that’s exactly why pay equity can’t be left to “gut feeling.” It needs to be proven.
Soon, employees across Europe won’t just be guessing. They’ll have the right to know.
A Directive That Changes the Game
The EU Pay Equity & Transparency Directive will come into force by 2026. It represents a cultural shift that will reshape how companies handle compensation — with a strong emphasis on clarity, objectivity, and accountability.
What the directive requires:
- Pay transparency before hiring: salary ranges must be shared upfront.
- Right to pay information: employees will be able to access details about gender pay gaps.
- Pay structure transparency: clear criteria to justify how salaries are defined.
- Job evaluation & classification: consistent frameworks for fair pay.
- Pay reporting duties: regular reporting obligations for companies.
Failing to prepare brings not only legal consequences, but also reputational and talent-related risks.
Waiting Is a Risk
The directive is already detailed enough to act on. Waiting for national transposition could lead to rushed implementation and missed opportunities.
Now is the moment for employers to ask themselves:
- Are salaries based on clear and objective criteria?
- Can our HR systems generate the required reporting data?
- Do we monitor and explain gender pay gaps?
- Are employees aware of their new rights?
If the answer to any of these is uncertain, it’s time to take action.
A Pragmatic Roadmap to Get Ready
At Ngage Consulting, we don’t just follow HR regulations — we prepare for them.
Our approach helps organisations turn regulatory obligations into a strategic advantage through a clear, step-by-step roadmap:
- Quick Scan: Assess your readiness by identifying strengths and challenges regarding the new directive.
- Evaluation Report: Analyse the data collected and provide key findings and priorities for action.
- Personalised Roadmap: Build a clear, tailored action plan adapted to your reality.
- Follow-up Discussion: Clarify insights, explore specific needs, and ensure alignment.
Pay equity isn’t just an HR issue — it’s a cultural transformation.