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EU PTD What Just Happened (or not)?
We are the second week into Go Live for EU PTD. We prepared for a big change, did we do too much, too little? How did the rubber hit the road? What do we expect for the coming quarters?
Listen to our panel sharing their experiences to date and their recommendations for what is to come.
Stream:
Key take-aways:
Two weeks after key June 2026 EU Pay Transparency Directive implementation developments, practitioners, advisors, and technology specialists reflected on what organizations had experienced in practice. A consistent message emerged: the anticipated surge in employee requests had not yet materialized, but organizations should not assume this early calm will continue. The discussion highlighted the importance of using this period to improve governance, strengthen job architecture, prepare managers, and build clear communication around pay practices.
The panel also emphasized that organizations are taking different paths. Some are focusing primarily on compliance, while others are leveraging pay transparency as a broader opportunity to reinforce fairness, trust, and organizational culture. Regardless of the chosen approach, success depends on having reliable structures, defensible data, meaningful stakeholder engagement, and a clear organizational narrative about pay.
Use the quiet period to strengthen readiness
Early implementation experiences suggest significantly fewer employee information requests than many organizations expected. Rather than reducing focus, organizations should use this period to test request-handling processes, validate data, confirm governance responsibilities, and prepare employee communication before awareness and external interest increase.
Decide whether pay transparency is compliance or strategy
Organizations are approaching the Directive differently. Some are limiting activities to legal requirements, while others see an opportunity to enhance trust, fairness, and transparency. Leaders should explicitly determine their desired position and align Reward, HR, Legal, Recruitment, Communications, and business stakeholders around that direction.
Job architecture remains the critical foundation
Several examples demonstrated that pay-gap analysis often uncovers structural issues rather than purely pay-related concerns. Accurate job classification, clear leveling, defensible comparison groups, and ongoing governance are essential to support meaningful analysis and credible transparency practices.
Managers need guidance, not unrestricted discretion
Broad salary ranges can provide flexibility but may increase the risk of unexplained differences. Organizations should equip managers and recruiters with practical guidance, decision criteria, documentation expectations, and escalation routes to support consistent and defensible pay decisions.
Communication and stakeholder engagement will determine future success
Employees, unions, works councils, and external stakeholders may become increasingly active as understanding of transparency rights grows. Organizations should proactively explain their pay philosophy, engage representative bodies early, and provide context before sharing salary ranges, pay-gap figures, or other compensation information.
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