{"componentChunkName":"component---src-templates-node-blog-js","path":"/blog/pay-transparency-2026-how-prepare-your-company-and-managers-conflicts-arise","result":{"data":{"nodeBlog":{"id":"6566ba15-f72b-57d7-82fe-28f258de1c24","drupal_id":"e4eacbaf-ddf5-421c-860a-94d61042df23","drupal_internal__nid":1822,"internal":{"type":"node__blog"},"title":"Pay transparency 2026: how to prepare your company and managers before conflicts arise","body":{"summary":"","value":"<!-- wp:heading {\"level\":1} -->\r\n<h1></h1>\r\n<!-- /wp:heading -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>Pay transparency is the obligation to ensure that employees have access to information about remuneration policies and to justify pay differences on the basis of objective criteria.</p>\r\n<!-- /wp:paragraph -->\r\n\r\n<!-- wp:heading -->\r\n<h2>How to prepare your company for pay transparency?</h2>\r\n<!-- /wp:heading -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>Pay transparency necessitates the implementation of HR management standards within the company, which until now have mainly applied to large employers.</p>\r\n<!-- /wp:paragraph -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>The EU Pay Transparency Directive comes into force in 2026. A draft bill on strengthening the application of the right to equal pay for men and women for equal work or work of equal value is currently under review. This means that the preparation period is running out, and transparency is becoming a legal obligation. The provisions of the Act will apply to all employers, regardless of the size of the organisation or the sector. Of course, some reporting obligations will depend on the number of employees, but the very principle of pay transparency and employees’ right to information are becoming a new standard in the labour market.</p>\r\n<!-- /wp:paragraph -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>In the public debate, most attention is focused on the obligation to publish pay ranges or the ability to obtain information on pay levels. Meanwhile, for most organisations, the real challenge lies elsewhere.</p>\r\n<!-- /wp:paragraph -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>Pay transparency is a revolution in remuneration management and a catalyst for the adoption of good HR practices, which have been in place for years in the most mature organisations but have not always been implemented in small and medium-sized companies and institutions.</p>\r\n<!-- /wp:paragraph -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>Employers will need to be able to answer questions such as:</p>\r\n<!-- /wp:paragraph -->\r\n\r\n<!-- wp:list -->\r\n<ul><li>Why is a particular role remunerated in this specific way?</li><li>On what basis was the pay level determined?</li><li>Are people performing work of equal value paid according to the same principles?</li><li>Can differences in pay be objectively justified?</li></ul>\r\n<!-- /wp:list -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>If an organisation does not have clear answers to these questions, simply publishing the pay bands will not solve the problem.</p>\r\n<!-- /wp:paragraph -->\r\n\r\n<!-- wp:heading -->\r\n<h2>Where should an organisation start when preparing for pay transparency?</h2>\r\n<!-- /wp:heading -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>It is worth starting the company’s preparation for pay transparency by reviewing several key areas of the organisation.</p>\r\n<!-- /wp:paragraph -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>Firstly, the job structure should be examined. Does the organisation have an up-to-date list of job titles? Do the roles have clearly defined levels of responsibility? Do the same job titles not, in practice, correspond to different scopes of duties?</p>\r\n<!-- /wp:paragraph -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>The second area concerns job descriptions. In many companies, only job specifications exist, which for years have been sufficient from a labour law perspective. However, in the context of pay transparency, this may prove to be insufficient.</p>\r\n<!-- /wp:paragraph -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>Job descriptions should include elements that allow the value of the work to be assessed:</p>\r\n<!-- /wp:paragraph -->\r\n\r\n<!-- wp:list -->\r\n<ul><li>responsibility,</li><li>level of autonomy,</li><li>scope of decision-making,</li><li>required competencies,</li><li>impact of the role on the achievement of the organisation’s objectives.</li></ul>\r\n<!-- /wp:list -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>Without this information, it will be difficult to demonstrate why two roles differ in terms of pay.</p>\r\n<!-- /wp:paragraph -->\r\n\r\n<!-- wp:heading {\"level\":3} -->\r\n<h3>Job evaluation – the foundation of transparency</h3>\r\n<!-- /wp:heading -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>One of the most important elements in preparing an organisation for the new requirements is job evaluation.</p>\r\n<!-- /wp:paragraph -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>Many companies have pay scales built up historically or based on managerial decisions. The problem arises when an organisation cannot identify an objective reason why a particular job is placed within a specific pay band.</p>\r\n<!-- /wp:paragraph -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>In practice, pay scales not based on job evaluation may be perceived as arbitrary. Meanwhile, the directive is based on the principle of remuneration for work of equal value.</p>\r\n<!-- /wp:paragraph -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>It is therefore worth asking yourself the following questions:</p>\r\n<!-- /wp:paragraph -->\r\n\r\n<!-- wp:list -->\r\n<ul><li>Have all jobs been evaluated?</li><li>Does the organisation have documentation of the evaluation methodology?</li><li>When were the evaluation results last updated?</li><li>Are new roles incorporated into the system in a manner consistent with the adopted principles?</li></ul>\r\n<!-- /wp:list -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>Without this, it will be difficult to defend the transparency and fairness of the remuneration system.</p>\r\n<!-- /wp:paragraph -->\r\n\r\n<!-- wp:heading {\"level\":3} -->\r\n<h3>The greatest risks of incomplete preparation for pay transparency</h3>\r\n<!-- /wp:heading -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>The greatest risk to pay transparency is the organisation’s incomplete preparation.</p>\r\n<!-- /wp:paragraph -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>Many companies begin their preparations for pay transparency by asking about pay bands, reporting or publishing information for candidates. Meanwhile, the greatest risks arise much earlier – at the level of the foundations of the entire remuneration management system.</p>\r\n<!-- /wp:paragraph -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>In practice, the directive also requires the organisation of many closely interlinked HR areas. Job structure, job descriptions, job evaluation, pay scales, bonus schemes, regulations, remuneration policy and the method of communicating pay decisions all form a single remuneration system.</p>\r\n<!-- /wp:paragraph -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>If any of these elements is inconsistent, the problem very quickly begins to spread to other areas.</p>\r\n<!-- /wp:paragraph -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>Therefore, the implementation of pay transparency should be treated as a process of building a coherent system that can not only be implemented but also defended against employees, candidates, employee representatives and supervisory bodies.</p>\r\n<!-- /wp:paragraph -->\r\n\r\n<!-- wp:heading {\"level\":4} -->\r\n<h4>The first challenge in preparing for pay transparency: errors in the foundations cost the most</h4>\r\n<!-- /wp:heading -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>In practice, many organisations begin their preparations by creating pay scales or setting pay bands. However, without first organising the job structure and job descriptions, such measures may prove short-lived.</p>\r\n<!-- /wp:paragraph -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>If, after a few months, it turns out that the job roles have been described incorrectly or the scope of responsibilities does not correspond to reality, it will be necessary to repeat the subsequent stages of the project:</p>\r\n<!-- /wp:paragraph -->\r\n\r\n<!-- wp:list -->\r\n<ul><li>updating job descriptions,</li><li>re-evaluating job roles,</li><li>adjusting pay grades,</li><li>changing pay scales,</li><li>updating regulations,</li><li>re-communicating with employees.</li></ul>\r\n<!-- /wp:list -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>This is not just a matter of additional costs. It also means a loss of the organisation’s credibility.</p>\r\n<!-- /wp:paragraph -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>Employees find it much easier to accept changes when they can see the logic and consistency behind them. It is, however, much harder to explain why the remuneration system is changing yet again just a few months after its implementation.</p>\r\n<!-- /wp:paragraph -->\r\n\r\n<!-- wp:heading {\"level\":4} -->\r\n<h4>The second problem with pay transparency: rising employee expectations</h4>\r\n<!-- /wp:heading -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>Pay transparency gives employees access to information that was previously often beyond their reach.</p>\r\n<!-- /wp:paragraph -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>For many organisations, managing people’s expectations will be a real challenge.</p>\r\n<!-- /wp:paragraph -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>Employees will start asking questions:</p>\r\n<!-- /wp:paragraph -->\r\n\r\n<!-- wp:list -->\r\n<ul><li>Why is my pay at this point in the pay scale?</li><li>What do I need to do to move up a level?</li><li>How does the company define work of equal value?</li></ul>\r\n<!-- /wp:list -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>If the organisation does not prepare answers to these questions in advance, the information gap will very quickly be filled by speculation, rumours and informal interpretations.</p>\r\n<!-- /wp:paragraph -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>In such situations, the source of conflict is not so much the pay itself as the lack of understanding of the principles on which the system is built.</p>\r\n<!-- /wp:paragraph -->\r\n\r\n<!-- wp:heading {\"level\":4} -->\r\n<h4>Problem three: managers become the first line of responsibility</h4>\r\n<!-- /wp:heading -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>In most organisations, the first person an employee will turn to with a question about pay will be their line manager.</p>\r\n<!-- /wp:paragraph -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>Yet one of the most frequently overlooked elements of preparation is managers’ readiness to discuss pay.</p>\r\n<!-- /wp:paragraph -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>Even the best-designed system can become a source of tension if a manager:</p>\r\n<!-- /wp:paragraph -->\r\n\r\n<!-- wp:list -->\r\n<ul><li>does not understand how it works,</li><li>cannot explain the criteria for pay differentiation,</li><li>avoids talking about money,</li><li>provides inconsistent information.</li></ul>\r\n<!-- /wp:list -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>The management team acts as the first line of defense in building the organisation’s resilience to conflicts related to pay transparency.</p>\r\n<!-- /wp:paragraph -->\r\n\r\n<!-- wp:heading -->\r\n<h2>How can an organisation’s actual readiness for pay transparency be measured?</h2>\r\n<!-- /wp:heading -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>At Heuresis, we analyse two complementary indicators.</p>\r\n<!-- /wp:paragraph -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>The first is the <strong>System and Process Readiness Index</strong>, which shows the organisation’s level of preparedness from a formal and organisational perspective. It covers, amongst other things, job structure, job descriptions, job evaluation, remuneration policy, regulations, the bonus system and HR processes.</p>\r\n<!-- /wp:paragraph -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>The second is the <strong>Staff Readiness Index</strong>, which allows us to assess the level of awareness and preparedness of those responsible for communicating and applying the new rules – primarily managers and team leaders.</p>\r\n<!-- /wp:paragraph -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>Only by interpreting both indicators together can we obtain a realistic picture of the organisation’s readiness to implement regulatory requirements and mitigate the risk of internal conflicts.</p>\r\n<!-- /wp:paragraph -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>After all, it is possible to have very well-prepared procedures whilst lacking staff capable of explaining them effectively to employees. It is also possible to have aware managers who do not have a coherent remuneration system at their disposal. In both cases, the risk remains high.</p>\r\n<!-- /wp:paragraph -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>Therefore, in our view, effective preparation for pay transparency requires working simultaneously on both the system and the people. It is precisely this combination of these two perspectives that builds organisational resilience against tensions, misunderstandings and disputes, the source of which is most often not the pay itself, but a lack of a sense of fairness and understanding of the principles behind how it is determined.</p>\r\n<!-- /wp:paragraph -->\r\n\r\n<!-- wp:heading -->\r\n<h2>5 areas worth checking today to prepare your company for pay transparency</h2>\r\n<!-- /wp:heading -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>If you were to begin preparations for pay transparency with just a few steps, start by reviewing the foundations of the system. These are what most often determine whether the organisation will be able to effectively implement the new requirements, or whether it will face the need to constantly refine its own solutions.</p>\r\n<!-- /wp:paragraph -->\r\n\r\n<!-- wp:heading {\"level\":3} -->\r\n<h3>1. Job structure</h3>\r\n<!-- /wp:heading -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>Check whether the organisation has an up-to-date and consistent job structure. Pay particular attention to situations where:</p>\r\n<!-- /wp:paragraph -->\r\n\r\n<!-- wp:list -->\r\n<ul><li>the same job titles denote different scopes of responsibility,</li><li>similar roles operate under different names,</li><li>there are no job levels or career paths.</li></ul>\r\n<!-- /wp:list -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>This is where problems with comparing salaries and evaluating work of equal value most often begin.</p>\r\n<!-- /wp:paragraph -->\r\n\r\n<!-- wp:heading {\"level\":3} -->\r\n<h3>2. Job descriptions and evaluation criteria</h3>\r\n<!-- /wp:heading -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>The scope of duties may no longer be sufficient. Check whether job descriptions include:</p>\r\n<!-- /wp:paragraph -->\r\n\r\n<!-- wp:list -->\r\n<ul><li>responsibilities,</li><li>scope of decision-making,</li><li>required competencies,</li><li>the role’s impact on the organisation’s results,</li><li>criteria for assessing the value of the work performed.</li></ul>\r\n<!-- /wp:list -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>If a job description fails to explain why a role is remunerated at a specific level, it is worth updating it before work on pay scales begins.</p>\r\n<!-- /wp:paragraph -->\r\n\r\n<!-- wp:heading {\"level\":3} -->\r\n<h3>3. Pay system and variable components</h3>\r\n<!-- /wp:heading -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>Analyse not only basic pay, but above all the various elements that differentiate employees’ pay levels. Apart from explaining the structure of basic pay, many questions also arise regarding:</p>\r\n<!-- /wp:paragraph -->\r\n\r\n<!-- wp:list -->\r\n<ul><li>bonuses,</li><li>incentives,</li><li>allowances,</li><li>discretionary awards,</li><li>and benefits granted to selected groups of employees.</li></ul>\r\n<!-- /wp:list -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>If you cannot clearly explain the rules for awarding these benefits, it is likely that employees do not understand them either.</p>\r\n<!-- /wp:paragraph -->\r\n\r\n<!-- wp:heading {\"level\":3} -->\r\n<h3>4. Managers’ readiness to discuss pay</h3>\r\n<!-- /wp:heading -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>Even the best system won’t work on its own. Consider the following:</p>\r\n<!-- /wp:paragraph -->\r\n\r\n<!-- wp:list -->\r\n<ul><li>Do managers understand the remuneration principles?</li><li>Can they explain pay differences?</li><li>Do they know how to answer questions about promotions, pay bands or bonuses?</li><li>Can they handle difficult conversations without escalating tensions?</li></ul>\r\n<!-- /wp:list -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>It is the managers who will be the primary source of information for employees and the first line of defence in building trust in the system.</p>\r\n<!-- /wp:paragraph -->\r\n\r\n<!-- wp:heading {\"level\":3} -->\r\n<h3>5. Communication and a sense of fairness</h3>\r\n<!-- /wp:heading -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>The greatest risk is a situation where employees do not understand how the system works or do not perceive it as fair.</p>\r\n<!-- /wp:paragraph -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>That is why it is worth answering one fundamental question: <strong>Are we ready to explain every pay difference in a way that is objective, consistent and understandable to employees?</strong></p>\r\n<!-- /wp:paragraph -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>If the answer is ‘no’ or ‘we’re not sure’, it is worth starting your preparations right here.</p>\r\n<!-- /wp:paragraph -->\r\n\r\n<!-- wp:heading -->\r\n<h2>Summary: Is your organisation ready for pay transparency?</h2>\r\n<!-- /wp:heading -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>If you answered <strong>NO</strong> to at least two of the questions below, it is highly recommended to conduct a professional readiness assessment and begin formal preparations:</p>\r\n<!-- /wp:paragraph -->\r\n\r\n<!-- wp:list {\"ordered\":true} -->\r\n<ol><li>Do all roles have up-to-date job descriptions? <strong>[YES/NO]</strong></li><li>Have all the roles been valued through job evaluation? <strong>[YES/NO]</strong></li><li>Can your managers objectively explain pay differences? <strong>[YES/NO]</strong></li><li>Are the bonus and incentive rules formally documented? <strong>[YES/NO]</strong></li><li>Do employees fully know how the pay system works? <strong>[YES/NO]</strong></li></ol>\r\n<!-- /wp:list -->\r\n\r\n<!-- wp:quote -->\r\n<blockquote class=\"wp-block-quote\"><p><strong>Remember:</strong> The resilience of a remuneration system arises when an organisation has a solid foundation, informed managers and employees who understand the principles under which the system operates. It is precisely such organisations that cope best not only with the implementation of new legal requirements, but also with the inevitable market changes.</p></blockquote>\r\n<!-- /wp:quote -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>If you’d like to hear about the consequences of pay discrimination and what the new legislation entails, listen to the ‘Siła Kobiet’ podcast, where we explain what pay discrimination is, how it manifests itself, and what changes the Directive brings <em>(Note: Podcast available in Polish)</em>: <a target=\"_blank\" rel=\"noreferrer noopener\" href=\"https://www.heuresis.pl/pl/aktualnosci/barbara-matyaszek-szarek-goscinia-podcastu-sila-kobiet\">Listen to the podcast here</a>.</p>\r\n<!-- /wp:paragraph -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>If you’d like to find out more about the role of the HR Business Partner in preparing the organisation for pay transparency and how to support managers and the board in this process, read our dedicated article: <strong>How can an HRBP prepare a company for changes related to pay transparency?</strong> It is often the HRBP who acts as the link between legal requirements, the business, managers and employees, helping to build both system readiness and organisational readiness for change.</p>\r\n<!-- /wp:paragraph -->\r\n\r\n<!-- wp:heading -->\r\n<h2>Frequently asked questions about the Pay Transparency Directive:</h2>\r\n<!-- /wp:heading -->\r\n\r\n<!-- wp:heading {\"level\":3} -->\r\n<h3>Who is subject to pay transparency?</h3>\r\n<!-- /wp:heading -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>All employers, regardless of size or sector.</p>\r\n<!-- /wp:paragraph -->\r\n\r\n<!-- wp:heading {\"level\":3} -->\r\n<h3>Does pay transparency mainly involve publishing pay bands?</h3>\r\n<!-- /wp:heading -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>Pay bands are just one element, as is reporting the pay gap. However, the essence of this change lies in implementing HR systems that enable the company to confirm the absence of pay discrimination.</p>\r\n<!-- /wp:paragraph -->\r\n\r\n<!-- wp:heading {\"level\":3} -->\r\n<h3>How can differences in pay for the same role be justified?</h3>\r\n<!-- /wp:heading -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>Differences are permitted provided they are based on objective, gender-neutral criteria. 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