Are You Ready to Explain Differences in Pay?
What happens when two employees in similar roles are paid differently — and you can’t explain why?
This question isn’t hypothetical. Recent rulings against Next and the ongoing Asda case highlight the real consequences for companies that can’t defend their pay decisions. With the upcoming EU Pay Transparency Directive, even more businesses will face these challenges. The directive requires companies to share salary bands and justify pay differences with clear, data-backed reasons.
The problem??
Many companies aren’t ready. They rely too much on market rates and don’t have solid internal systems for explaining why one role is paid more than another. And as the Next and Asda cases show, this leaves businesses vulnerable to legal challenges.
To prepare for the directive, companies need to start building the right foundations now. That starts with job architecture — creating a clear, consistent framework for how roles are evaluated and compensated.?
The new directive shifts the burden of proof to employers. Companies will need to show their work and prove that pay decisions are fair and consistent. The time to act is now — not just to comply with the law, but to build a more transparent workplace that values all employees.
What We’re Writing
We explore how recent pay litigation in the UK can provide lessons for EU companies preparing for new pay transparency rules.
We break down common errors businesses make when implementing job evaluation frameworks and offer solutions for getting it right.
What We’re Reading
Recent research from the US reveals some unexpected trends in salary expenses under transparent pay systems.
领英推荐
This fascinating data project by the Burning Glass Institute and Harvard measures how hundreds of companies perform across the key metrics of pay, promotion, parity, hiring, and culture. It's a treasure trove of ideas for anyone looking to build a fairer workplace.
Video: What Will the EU Pay Transparency Directive Mean for Your Business?
By 2026, the EU’s Pay Transparency Directive will bring sweeping changes to how businesses handle compensation. Is your company prepared? Watch our quick video to understand the key takeaways and what steps you need to take today to get ready.
Tools: Readiness Checklist for Employers
Not sure how prepared you are for the directive? Our readiness checklist will help you assess your company’s current pay practices and identify gaps that need attention.
About This Newsletter
Pay and progression shouldn’t feel like a mystery - to you or your employees.
Each week, Work & Worth delivers actionable strategies, expert advice, and the latest research on building transparent, fair, and competitive compensation structures and career paths. Stay ahead of legislative changes and ensure your employees feel valued.
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