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 salary 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 gender pay gap exceeds 5%, companies must take action.
And more - please check to see the full criteria.
How Teamtailor can help
Salary communication - job advert
Within your Custom fields settings, you can enable the Salary custom field. Once activated, you will have an option to display the salary within each job posting. The salary can be displayed either as one number or a salary range. There are options to choose the desired currency and time period, for example:
The salary will then be displayed beneath the job description on the job advert 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.
Salary communication - in the recruitment process
If you wish to communicate the salary to your jobseekers 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 Recordable meetings feature, you can also record the interview and generate a transcript to ensure that each interviewer is following the rules.
Salary reporting
As part of the new Directive, it will also be mandatory to report on the salaries that your applicants have accepted. For this, you can use Teamtailor's custom reports feature.
If the confirmed salary matches the given salary in the job advert, then you can use custom snapshot job reports. You will need to add new columns for "Salary currency", "Salary min", and "Salary time unit", as well as the "Title". This will then display the full details of the salary per job.
If the confirmed salary 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 salary 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 fulfill the criteria.
The extra mile - Content page
Want to go the extra mile and show your candidates how your company is working towards reducing the gender pay gap? Start from scratch with a blank page in your Content builder, then create content on all the methods your company is positively building towards the EU Directive.