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Pay Transparency Audit – Self Assessment

This article summarizes the Pay Transparency Workshop, covering the EU directive, national reporting requirements, MIA pay-setting model, and the PTA assessment and rating framework

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1. Introduction

The Pay Transparency Workshop provides organizations with a comprehensive overview of the EU Pay Transparency Directive, existing national reporting requirements, and the foundational principles of fair and consistent pay setting. It also introduces the Pay Transparency Assessment (PTA) Model — a structured framework used to evaluate an organization’s readiness for transparent, equitable, and regulation-compliant pay practices.

The workshop combines regulatory education, compensation strategy, and practical exercises in understanding job evaluation, pay setting, and transparency requirements.


2. About Sysarb

Sysarb is a global provider of compensation and pay equity solutions with over 20 years of experience. The company supports more than 600 clients and 10,000 users across 60+ countries, offering a combination of advisory services and technology to help organizations build fair, data-driven pay structures.

PTA Workshop - Europe


3. Key Workshop Components

The workshop is built around three core parts:

  1. EU Pay Transparency Directive – Key Takeaways

  2. Existing Pay Gap Reporting Requirements (per country)

  3. Interactive Workshop: Understanding Pay Setting using the MIA Model


4. EU Pay Transparency Directive – Summary

Purpose of the Directive

The aim is to strengthen the principle of equal pay for equal work or work of equal value for men and women.

PTA Workshop - Europe

A. Transparency Towards Candidates

Key requirements:

  • Job applicants must be informed of the salary range for the position.

  • Employers may not ask candidates about their current or past salary.

Practical implications:

  • Use recruitment systems that support publishing of accurate salary ranges, levels, and job descriptions.

  • Train managers in directive requirements and prohibit questions about salary history.

    PTA Workshop - Europe


B. Transparency Towards Employees

Employees gain several new rights:

  • Insight into pay setting and pay progression

  • Access to information on pay levels within equal and equivalent jobs, broken down by gender

  • The employer bears the burden of proof in cases of suspected discrimination

Importance of job evaluation:
Analytical job evaluation establishes the numerical value of roles and determines whether different jobs have equal value. Jobs with the same value must have equal remuneration.
(ILO Equal Pay Introductory Guide cited within the workshop.)

PTA Workshop - Europe


C. Transparency Towards the State / Public

Employers must:

  • Publicly disclose pay gaps

  • Conduct a joint pay assessment if gaps exceed 5% and cannot be justified

  • Address gaps unless gender-neutral factors explain them

Organizations must prepare for how transparency will impact employer branding, retention, and recruitment.

PTA Workshop - Europe


5. Existing Pay Gap Reporting Requirements in Europe

The workshop provides examples from countries such as:

Sweden – Discrimination Act

  • Mandatory yearly documentation for all companies with 10+ employees

  • Additional yearly gender pay gap reporting for companies with 150+ employees

  • Reporting includes:

    • Job evaluation criteria

    • Analysis of work of equal value

    • Analysis of gaps between female- and male-dominated jobs

    • Measures taken or proposed

Ireland – Employment Equality Act

  • Mandatory publication of gender pay gap data

  • Reporting includes hourly remuneration, access to benefits, and bonus distribution

    PTA Workshop - Europe

Local examples are customized per client.


6. Draft Local Implementation of the Directive

Draft national implementations vary by country. Examples include:

Sweden

  • Pay ranges required in recruitment

  • Employees gain the right to information on pay levels and progression

  • DO (Equality Ombudsman) will publish aggregated KPIs publicly

  • Employers must address unexplained gaps within 6 months or submit a 3-year action plan

Ireland

  • Pay ranges on job advertisements
    (Additional state-level transparency rules pending.)

    PTA Workshop - Europe


7. Key Takeaways from the Legislation

The workshop highlights four critical takeaways:

  1. Start with structure:
    Objective job evaluation and consistent grade levels are essential.

  2. Analyze both equal and equivalent roles:
    The directive requires a mindset shift beyond traditional job title comparisons.

  3. Strong pay philosophy:
    Organizations must clearly articulate what drives pay internally.

  4. Communication:
    Transparent pay practices require strong internal communication.

    PTA Workshop - Europe


8. Workshop: Understanding Pay Setting (Using the MIA Model)

The MIA model explains the three key drivers of pay:

  • M – Market: External competitiveness and salary benchmarks

  • I – Individual: Performance, skills, and experience

  • A – Assignment (Job): Job complexity, responsibility, and value determined through job evaluation

The workshop uses this model to demonstrate how transparent, consistent pay setting works in practice.

PTA Workshop - Europe


9. PTA Matrix – Structure, Information, Communication

The PTA Matrix evaluates organizational maturity across three dimensions:

1. Structure (S)

Assesses:

  • Job architecture

  • Career paths

  • Job evaluation practices

2. Information (I)

Assesses:

  • Accessibility of pay models and structures

  • Availability of salary information

  • Whether stakeholders receive correct and complete information

3. Communication (C)

Assesses:

  • Manager communication about pay setting

  • Employee understanding of their placement and pay

  • Transparency around pay structures

Each dimension is rated on a scale:

  • Sustainable / Low Risk

  • Moderate Risk

  • Critical

    PTA Workshop - Europe


10. PTA Rating Model

The rating model visualizes an organization’s pay transparency maturity based on:

  • Presence and quality of pay structures

  • Whether structures are updated

  • Whether structures are communicated

  • Degree of transparency and employee understanding

  • Coverage of all levels, countries, and pay elements

Examples illustrate what qualifies as:

  • Sustainable: Fully transparent, globally aligned structures, updated regularly

  • Moderate Risk: Partial structure, limited communication, inconsistent application

  • Critical: No structure, secrecy around pay, lack of communication

    PTA Workshop - Europe


11. PTA Findings and Recommendations

The workshop concludes with a customizable findings and recommendations section:

  • Findings categorized as Sustainable, Moderate Risk, or Critical

  • Recommendations categorized as:

    • Keep (practices performing well)

    • Review (areas needing improvement)

    • Change / Address (critical gaps to fix)

      PTA Workshop - Europe

These outputs help clients prioritize actions for compliance, fairness, and transparency.


12. Summary

The Pay Transparency Workshop gives organizations a structured understanding of the EU Pay Transparency Directive, local reporting obligations, and the foundations of equitable pay setting. Through the MIA model, job evaluation principles, and the PTA Matrix, companies can assess their current state, identify risks, and build a roadmap toward sustainable, transparent, and regulation-proof pay practices.

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