Introduction
As of 24th April 2023, the European Council of the European Union has adopted new rules on pay transparency to help close the gender pay gap and tackle workplace pay discrimination. The directive is expected to be translated into national law of the EU member states by June 2026.
In practice, this means that:
It will be compulsory for employers to inform their candidates about the starting compensation or pay range of advertised positions, either within the job advert or ahead of the interview.
Employers can no longer ask a candidate about their pay history.
Companies with 250+ employees must report annually on the gender pay gap, while companies with 100-249 employees will report once every three years.
If the company's gender pay gap exceeds 5%, companies must take action.
And more - please check to see the full criteria.
How Teamtailor can help
Compensation communication in job ad
You can display compensation information in your job ads by enabling the job custom field Compensation. Once enabled, you can choose to display the compensation type, amount or range, currency, and recurrence in each job posting.
To configure which compensation types, currencies, and recurrence options are available, go to the Compensation tab under Settings → Recruitment → Custom fields.
The compensation will then be displayed beneath the job description on the job ad on your career site, for example:
If you have built your own career site using our public API, you will find these fields as job attributes in our documentation here.
Compensation communication in the recruitment process
If you wish to communicate the compensation to your job seekers as a message before the interview, this could be automated as a send message to candidate trigger on your desired stage, or sent manually from the candidate profile.
Asking the right interview questions
To ensure that you are not asking a candidate about their pay history, you can use Interview kits.
Interview kits allow you to leave instructions for your interviewers, as well as add questions to follow as you and your team carry out the interview. Using Co-pilot's Meeting insights feature, you can also record the interview and generate a transcript to ensure that each interviewer is following the guidelines.
Compensation reporting
As part of the new Directive, it will also be mandatory to report on the compensation that your applicants have accepted. For this, you can use Teamtailor's custom reports feature.
If the confirmed compensation matches the given compensation in the job advert, then you can use a custom snapshot job report. You will need to add new columns for "Salary currency", "Salary min", "Salary max" and "Salary time unit", as well as the "Title". This will then display the details of the compensation per job.
If the confirmed compensation was within a range, then you will need to add this as a candidate custom field in your settings. Once added, you can then add this field to the hired candidate. To report on this, you can create a custom snapshot candidate report and add a column for your new compensation field. This will then display the salaries that you have added to this field per candidate.
Note that this will only feature candidates that you have hired in Teamtailor, and therefore, you may need further reporting from your HRIS to fulfil the criteria.
The extra mile: Career page
Want to go the extra mile and show your candidates how your company is working towards reducing the gender pay gap? Create a custom page in your Career site editor, then create content on all the methods your company is positively building towards the EU Directive.
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