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5 Things We Learned From Zukunft Personal Europe 2024

The curtain fell on yet another ZPE conference last week - and we were delighted to be there once again to share insights on job evaluation and compensation with organisations from across Europe. With many of gradar’s senior employees on the shop floor spreading the word about pay transparency and The EU Pay Directive, we asked them for their key takeaways from this year’s event. Here are five things we learned…

Some Organisations Are Still Unaware of The EU Pay Transparency Directive

The deadline for The EU Pay Transparency Directive is just over 12 months away and yet many organisations are still completely unaware of its existence! This was pretty worrying given the severe impact a lack of compliance could have on companies who fail to meet the legislation’s requirements. We definitely noticed an increased interest in pay transparency from last year’s ZPE - but still little knowledge among HR teams of the regulations that lie ahead, as well as the proven and required policies and practices to comply such as job evaluation and compensation structures.

Companies Who Had Heard of The Directive Have Still Not Started To Prepare

Some people we spoke to were aware of the legislation but had not yet actively started to prepare. It seemed as though the topic was being handed over to Compliance teams rather than Rewards teams. Pay transparency is a complex topic deeply ingrained in compensation practices - and it needs expert knowledge to handle effectively. We are clearly a long way from organisations being confident with implementing pay transparency or understanding the new legislation - but the clock is ticking to meet the 2026 deadline. So, if you know about it, start acting on it!

Companies Risk Missing Deadlines Because They Think They’re ‘Too Small’

It appears many organisations are ignoring The Directive because they don’t believe it affects them. Well, if you have 150+ employees, you have to report in line with it. Non-negotiable. What’s more, every company regardless of size must comply with its requirements, such as providing pay scale information before interviews and eliminating pay differences that aren’t based on gender-neutral factors. We spread this message at ZPE, but until there’s greater awareness of just how disruptive this legislation will be to every EU organisation, many companies will sleepwalk into serious issues down the line.

Beware of Catch-All Consultants Jumping On The Pay Transparency Bandwagon

For companies who are aware of the new legislation and committed to taking action, there’s a major issue to be aware of. At ZPE, we noticed more independent rewards consultants preparing to implement The Directive’s requirements with their clients. That’s great news - but beware of copycats! One of our concerns is inexperienced, garden-variety consultants jumping on the bandwagon to deliver pay transparency advice. Where possible, please work with competent firms who have a deep knowledge of job evaluation, compensation and EU pay transparency regulations.

The Pay Transparency Alliance Had Strong Engagement Throughout ZPE

As a founding member of The Pay Transparency Alliance, gradar was at ZPE to raise awareness of The EU Pay Transparency Directive and guide organisations down the best path to compliance. Despite the issues listed above, The PTA was a hidden champion in regard to the topic of pay transparency - with plenty of booth visitors receptive to our ideas and advice. As a result, we saw increasing numbers of attendees visiting keynotes, speeches and workshops around the topic of pay transparency as they become more aware (and perhaps a little bit scared!) of new legislation.