PAY TRANSPARENCY - IT'S ABOUT MORE THAN PUTTING A SALARY ON THE ADVERT

PAY TRANSPARENCY – IT’S ABOUT MORE THAN PUTTING A SALARY ON THE ADVERT

Part Two: Yesterday we highlighted five key actions that Employers need to understand. Today, we’ll look at what they should be doing now, salary transparency and Gender Pay Gap reporting.

IT’S ABOUT MORE THAN PUTTING A SALARY ON THE ADVERT

Pay transparency extends beyond recruitment.

The EU Directive provides employees with greater rights to information concerning pay and requires employers to consider how they determine pay levels and progression.

This means organisations should increasingly be capable of explaining:

Why does this role attract this salary?
Why might two people performing the same or equivalent work be paid differently?
What objective criteria determines salary progression?
Are our salary structures being applied consistently?

Employers should therefore consider reviewing salary structures, job grading, progression criteria and any unexplained differences in remuneration.

WHAT SHOULD EMPLOYERS BE DOING NOW?

We recommend employers consider the following practical steps:

Review salary ranges across existing positions
Establish objective criteria for determining where individuals sit within salary ranges
Review job advertisements and recruitment templates
Remove salary-history questions from recruitment processes
Review interview and offer procedures
Review job titles and descriptions for gender-neutral language
Examine potentially unexplained pay differences
Review job grading and salary progression criteria
Train hiring managers on transparent salary conversations
Keep appropriate records supporting significant pay decisions
Ensure recruitment partners receive an agreed salary or salary range when vacancies are briefed

WHAT ABOUT GENDER PAY GAP REPORTING?

Pay transparency and Gender Pay Gap reporting are related, but they are not the same thing. Ireland already has Gender Pay Gap reporting requirements for employers within the applicable employee thresholds.

The EU Pay Transparency Directive introduces additional reporting and transparency requirements, with obligations applying according to employer size and prescribed reporting timelines.

*Employers should therefore consider their existing Irish Gender Pay Gap obligations alongside the additional requirements arising from the Pay Transparency Directive and its implementation into Irish law.

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