{"id":6515,"date":"2026-03-20T11:14:24","date_gmt":"2026-03-20T11:14:24","guid":{"rendered":"https:\/\/www.psicotec.com\/pay-transparency-assessment-how-to-thoroughly-prepare-for-european-directive-2023-970\/"},"modified":"2026-04-14T11:22:45","modified_gmt":"2026-04-14T11:22:45","slug":"pay-transparency-assessment-2026","status":"publish","type":"post","link":"https:\/\/www.psicotec.com\/en\/pay-transparency-assessment-2026\/","title":{"rendered":"Pay Transparency Assessment: How to Thoroughly Prepare for European Directive 2023\/970"},"content":{"rendered":"\n

Pay transparency assessment <\/strong>has become a strategic priority for organizations seeking to stay ahead of one of the most significant regulatory changes in the areas of equality and human resources management. The entry into force of European Directive 2023\/970<\/a> <\/strong>on pay transparency, scheduled for June 6, 2026,<\/strong> requires companies to review not only their salary data but also the rationale behind their pay policy, promotion criteria, and how they justify potential differences between equivalent positions. <\/p>\n\n

When we talk about pay transparency, we are no longer talking solely about compliance. We are talking about internal consistency, trust, fairness, and an organization\u2019s ability to clearly explain how it values work and makes pay decisions. In this context, conducting a rigorous assessment allows us to turn a legal requirement into a real opportunity for organizational improvement. <\/p>\n\n

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What the new regulations entail and why the pay transparency assessment is key<\/h2>\n\n

The new European Directive reinforces the principle of equal pay for men and women for the same work or for work of equal value. To this end, it introduces new requirements that directly affect people management and various human resources processes. <\/p>\n\n

Among the most significant changes is the requirement to provide greater transparency in hiring processes, including information on salary ranges and limiting the ability to ask candidates about their past salaries. The right to access salary information is also strengthened, so that employees can request comparative data, disaggregated by gender, for equivalent positions. In addition, there are stricter requirements regarding records, audits, and the traceability of compensation decisions. <\/p>\n\n

All of this means that a pay transparency assessment<\/strong> is much more than a technical review. It is a structured evaluation designed to identify the organization\u2019s actual starting point, detect potential gaps or inconsistencies, assess the maturity of the compensation system, and define a viable roadmap for complying with the new framework with confidence. <\/p>\n\n

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\u201cThe key is no longer simply having access to salary data. What really matters is being able to demonstrate that the compensation structure is based on objective, transparent, and gender-neutral criteria. And that requires a systematic approach, a holistic perspective, and the ability to integrate various elements of the organization.\u201d<\/em><\/p>\n\n\n\n

Javier Rodrigo, Director of Consultancy and Organizational Transformation at Psicotec<\/p>\n<\/blockquote>\n\n

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Pay Transparency Assessment: Turning a Legal Requirement into a Catalyst for Change<\/h2>\n\n

Although the regulations mark a clear turning point, it is important not to view this process through a purely defensive lens. Organizations that take proactive steps have the opportunity to strengthen their internal structure and foster a more robust culture of equity and professionalism. <\/p>\n\n

Pay transparency requires answering questions that, in many companies, have not yet been addressed in sufficient depth. Are job roles clearly defined? Are there consistent criteria for assigning salary levels or bands? Is pay progression based on objective evidence? Can the organization clearly justify why two equivalent positions receive a certain level of compensation? Is there consistency between what the organization says and what it actually does? <\/p>\n\n

Answering these questions offers value that goes far beyond mere compliance. It involves assessing whether the compensation system is consistent, whether it fosters internal trust, and whether it aligns with the company\u2019s strategy. In other words, compensation transparency can serve as a lever to streamline, professionalize, and strengthen the organization\u2019s talent architecture. <\/p>\n\n

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Benefits of having a pay transparency assessment in your organization<\/h2>\n\n

Starting early offers very specific benefits. First, it helps mitigate risks. Identifying unjustified pay gaps, unclear criteria, or gaps in documentation early on prevents the problem from surfacing when a legal requirement is already imminent or when a formal request for information is received. <\/p>\n\n

Second, it improves the quality of the compensation structure. When analyzing their systems, many organizations discover that there are inconsistent historical decisions, poorly defined pay bands, or differences that are difficult to justify from a technical standpoint. This assessment provides clarity and facilitates more sound decision-making. <\/p>\n\n

Third, it strengthens the perception of internal fairness. When people have a better understanding of compensation criteria and perceive them as being based on an objective framework, trust in the organization increases and commitment is strengthened. Transparency, when managed well, does not create noise; it builds credibility. <\/p>\n\n

Furthermore, this process has a clear impact on a company\u2019s reputation. Companies that take pay transparency seriously project an image of responsibility, modernity, and financial soundness. In a market where employer branding and the candidate experience are becoming increasingly important, having a clear and defensible system is a real competitive advantage. <\/p>\n\n

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Pay Transparency Assessment: How to Prepare and Why Compliance Should Not Be an Isolated Effort<\/h2>\n\n

One of the most common mistakes is to think that compliance with pay transparency requirements can be achieved through a one-time effort or by drafting a single document. In reality, the new regulations require the integration of various components that must work together seamlessly. <\/p>\n\n

There can be no robust pay transparency without proper job descriptions<\/strong>, because that is where it is specified what is expected of each role, what responsibilities it entails, and what level of contribution it makes. Nor can it be sustained without competency dictionaries<\/strong> that help establish uniform criteria for evaluating and comparing roles. Similarly, equality plans<\/strong> and other tools related to diversity and equity are essential for contextualizing, preventing, and correcting potential inequalities. <\/p>\n\n

Added to this is the need to review compensation records and audits, define pay bands and levels, establish objective rules for progression, streamline decision-making processes, and prepare the organization to manage the right to information in a secure, clear, and consistent manner. When these elements are not aligned, transparency is undermined and risk increases. <\/p>\n\n

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Psicotec\u2019s contribution: methodological rigor and a comprehensive approach to assessing pay transparency<\/h2>\n\n

This is where having the support of a specialized consulting firm makes all the difference. At Psicotec, we understand that pay transparency isn\u2019t just about compensation\u2014it requires a comprehensive view of the organization. That\u2019s why, through our Consultancy and <\/strong>Organizational Transformation Division<\/strong><\/a>, we guide companies through a process that combines analysis, design, implementation, and continuous improvement. <\/p>\n\n

Our approach begins with a comprehensive compensation assessment designed to identify gaps, evaluate internal consistency, and detect risks. From there, we help design or review salary structures, levels and bands, progression criteria, and decision-making frameworks aligned with the reality of the business. We also assist in the preparation and updating of records and audits, as well as in the development of procedures and tools to comply with new information rights and traceability requirements. <\/p>\n\n

But we also offer a unique value proposition: the ability to complement this adaptation with essential elements that ensure the model\u2019s consistency. We\u2019re talking about job descriptions and evaluations, competency dictionaries, equality plans, performance evaluations, and other components that enable the creation of a system that is more objective, transparent, and sustainable over time. This approach is particularly valuable because it avoids piecemeal solutions. <\/p>\n\n

However, to help with this transition, at Psicotec we\u2019ve developed a pay transparency self-assessment tool<\/strong> that will allow you to analyze where your organization stands in the adaptation process. It will identify the main risks, suggest a 30-, 60-, and 90-day action plan, and send a report to your email. All of this takes less than 3 minutes and is completely free.<\/strong> <\/p>\n\n

Discover the Psicotec Self-Assessment Tool for Pay Transparency here<\/strong><\/a><\/p>\n\n

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Conclusion<\/h2>\n\n

The entry into force of the European Directive on June 6, 2026, marks a turning point in how organizations view compensation. Compensation transparency is no longer a secondary issue but has become a central element of compliance, fairness, and internal trust. <\/p>\n\n

That is why a pay transparency assessment <\/strong>is the best place to start. It provides insight into the company\u2019s actual situation, helps identify gaps, sets priorities, and enables the development of a robust response before regulatory pressure forces the company to act hastily. Being proactive not only reduces risks\u2014it also paves the way for a compensation management system that is clearer, more consistent, and better aligned with the company\u2019s talent strategy. <\/p>\n\n

If your organization wants to thoroughly prepare for this new landscape, at Psicotec<\/a>,<\/strong> through our Consultancy and Organizational Transformation division<\/strong>, we can help you tackle this process in a comprehensive manner, linking pay transparency to the principles that make it viable and sustainable. Working with a specialized consulting firm is the best way to turn a regulatory requirement into a real opportunity for transformation. <\/p>\n\n

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Contact Psicotec here<\/strong><\/a><\/div>\n<\/div>\n\n

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Pay transparency assessment has become a strategic priority for organizations seeking to stay ahead of one of the most significant regulatory changes in the areas of equality and human resources management. The entry into force of European Directive 2023\/970 on pay transparency, scheduled for June 6, 2026, requires companies to review not only their salary […]<\/p>\n","protected":false},"author":3,"featured_media":6463,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[29],"tags":[],"class_list":["post-6515","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/www.psicotec.com\/en\/wp-json\/wp\/v2\/posts\/6515","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.psicotec.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.psicotec.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.psicotec.com\/en\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.psicotec.com\/en\/wp-json\/wp\/v2\/comments?post=6515"}],"version-history":[{"count":1,"href":"https:\/\/www.psicotec.com\/en\/wp-json\/wp\/v2\/posts\/6515\/revisions"}],"predecessor-version":[{"id":6516,"href":"https:\/\/www.psicotec.com\/en\/wp-json\/wp\/v2\/posts\/6515\/revisions\/6516"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.psicotec.com\/en\/wp-json\/wp\/v2\/media\/6463"}],"wp:attachment":[{"href":"https:\/\/www.psicotec.com\/en\/wp-json\/wp\/v2\/media?parent=6515"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.psicotec.com\/en\/wp-json\/wp\/v2\/categories?post=6515"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.psicotec.com\/en\/wp-json\/wp\/v2\/tags?post=6515"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}