Wage transparency: obligation and implementation

In addition to work and in business, the problem of salary is taboo. However, the wage transparency And equality of remuneration are subjects of primary importance in the professional world.

But what is wage transparency? Why implement it in your business and what are its limits? How to apply it well? In this article, Factorial offers you some clarifications.

The transparency of wages: what are we talking about?

THE wage transparency represents the supply of financial information regarding the various employees of a company.

The obvious purpose of this practice is to reduce wage inequalities, in particular between men and women. In addition, since 2019 and by the law of the patte, the companies listed on the stock market must communicate the differences in the wages existing between the average employee and the managers.

They are also forced to communicate median wages. This law was a first step regarding the transparency of wages.

Too many incentives, this legal provision is not unanimous. In fact, some consider it insignificant and not very representative at a time when companies must reduce the differences in the remuneration between their employees. Wage transparency must be as honest as possible to be effective.

Equality, an important problem

All the same in front of wages! And yes, the main purpose of wage transparency is to reduce the wage differences between different employees and above all to promote the equal salary between men and women.

If the Salary inequalities between men And women have been reduced in recent years, they remain a big problem for theprofessional equality.

The professional equality index was established to measure the progress carried out and encourage companies to implement concrete actions to reduce these differences.

According to a study, in 2019, the wage income of women was on average 22 % lower than that of men.

With this system, all companies with more than 50 employees must calculate and publish on their website. This index allows you to calculate the level of equality between men and women according to the following criteria on a note of 100 points:

• Gap of remuneration of women / men out of 40 points;
• Individual increase rate in 20 points;
• The number of employees increased following maternity leave on 15 points;
• Equal between the 10 highest remuneration out of 10 points;
• Deposit of promotional rates between women and men out of 15 points (only for companies with over 250 employees).

If the note obtained is less than 75 points, the company must implement measures to better promote the equal salary.

📧 Download our model for free to calculate the gender equality index

Why apply wage transparency?

If the transparency of wages in the business is a big problem, it is because it has many advantages for the employer.

Initially, it encourages the same salary between men and women. It is essential for companies to cancel the excessive deviations of the remuneration between the two sexes.

The transparency of wages It is a great way to control Salary inequalities And reduce them. Establishing a corporate culture based onequitystrengthen the Trust of yours employees And it considerably improves the brand of your employer.

In fact, by communicating openly on yours wage grillprove your commitment to theprofessional equality AND compensation Merit.

This clarity in terms of remuneration helps to create a healthy environment in which all your employees feel the same. It is also an effective way to motivate your troops.

They therefore know that only skills and that wages are not assigned according to their kind but to their posts and their abilities. Finally, the transparency of wages simplifies the functioning of the company with the implementation of a wage grid decided in advance.

Follow a plan according to the criteria decided upstream and spend less time for wage negotiations. With a regulated salary as soon as the intake and attributed on objective criteria, they avoid unpleasant surprises and reduce the possible wage disputes of employees.

Transparency of salaries: what limits?

If the transparency of wages is accompanied by undeniable advantages, it is also questionable because it has certain limits. And it is in particular for its state of transparency that it can be a problem.

Knowing what will win by joining your structure, a candidate can be reluctant if the proposed salary is not in line with these inclinations. He could refuse to review his emoluments and go to the competition.

But it is also internally that things can be complicated. A wage transparency The poor implementation can generate tensions within your teams, especially if the wages they are not perceived as righteous and Right.

It is therefore essential to build a wage grill clear and objective, based on criteria of Skills and ofseniority.

This can influence the atmosphere to work and undermine the productivity of your teams also see some encourage some to leave your organization or require an increase. In such cases, it is all the synergy of your business that could be undermined.

The least well -paid employees may lose motivation and no longer want to provide efforts to be more efficient and achieve the objectives set.

6 suggestions to correctly apply wage transparency

The application of the transparency of wages well in business is an entire art. Here are some keys to be a success.

Think about your strategy

The implementation of a policy of wage transparency Requires in the depth reflection. It is important to define a strategy clear and communicate openly with yours employees during the process.

It is essential to document yourself and watch what other companies do in this sector.

The wage grid, before being transparent, must achieve the objectives and be adequately built so as not to be counterproductive. Leave little room for improvisation.

Bring communication

Communication is essential, both in our personal and professional life. Before implementing your salary strategy, remember to request your employees and consult them to discover their opinion. If necessary, create a working group on the subject.

For example, you can offer seminars to better adapt the wage grid so that it is in accordance with the expectations of your employees. The goal is to involve your employees so that they feel recognized and important.

Define the criteria of the wage grid

The transparency of wages simplifies the functioning of the company with the implementation of A wage grill. Follow a plan according to the criteria decided upstream and spend less time on Wage negotiation.

With wages As soon as the assumption and attribution on objective criteria, are avoided of unpleasant surprises and reduce the possible wage disputes of your employees.

Type of profession, skills, experience and seniority, transverse skills and concrete skills … The goal is to take into account all aspects of each profession and establish an honest and obvious reading grid.

Constantly improving wage policy

Being transparent in relation to wages attributed in your company is a good thing, but it is still necessary that the policy of remuneration is of quality. For this, it is essential to constantly improve your remuneration strategy.

Nothing should be frozen. Your salary policy must evolve and constantly adapt to the various fluctuations of the market and the cost of living. Having flexibility allows you to develop credible wage transparency.

Respects equality

The transparency of the salaries is an effective means to guarantee the same salary between all employees and in particular between women and men. If you want your salary strategy to be accepted by everyone, it is important to respect these equals.

The distribution of wages must therefore be as equal possible. Make sure to offer a wage grid that respects professional equality.

Promote variable remuneration

With a well -made wage grid, you have a trusted tool to allocate your team’s wages. However, variables can be added to bring more nuances to the remuneration system.

This measure allows you to reward individual performance without any discrimination. And if these variables are granted on the basis of objective criteria, they cannot suffer from any dispute.

Salary transparency directive: 2026 on the horizon

On April 24, the Council of the European Union adopted Directive 2023/970 of 10 May 2023 which concerns the transparency of wages.

The objective of this text is «to strengthen the application of the principle of equality of remuneration between women and men for the same work or work with the same value for transparency of remuneration and mechanisms of application of the law».

In other words, this directive requires equal pay between women and men, while imposing the wage transparency within companies.

If it did not exist, at the moment, by law that obliges employers to conduct transparency, this directive is a real step forward in the world of work.

However, it will still be necessary to wait a little before seeing this directive apply to companies. In fact, France (like EU member states) has until June 7, 2026 to transport it to its law.