Why Companies Should Be Open About Pay
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Why Companies Should Be Open About Pay
Openness leads to fairness
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Good morning. I'm a union representative in Dublin. In many workplaces, talking about pay is still seen as rude or even forbidden. Today, I'll argue that companies should be much more open about what they pay.
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01Why Companies Should Be Open About Pay
Good morning. I'm a union representative in Dublin. In many workplaces, talking about pay is still seen as rude or even forbidden. Today, I'll argue that companies should be much more open about what they pay.
02Europe Is Moving This Way
This isn't just my idea. In 2023, the European Union adopted the Pay Transparency Directive. Member countries had to turn it into national law by June 7, 2026.
Source: Directive (EU) 2023/970 of the European Parliament and of the Council (Pay Transparency Directive), EUR-Lex
03What the Rules Say
Under this directive, job applicants have the right to know the starting pay or pay range, for example in the job ad or before the interview. Employers can't ask about your pay history, and contracts can't stop workers from sharing their pay.
Source: Directive (EU) 2023/970, Articles 5 and 7, EUR-Lex
04Reason 1: Hidden Pay Hides Unfairness
Why does this matter? Because you can't fix a problem you can't see. If pay is secret, two people doing the same job can be paid very differently, and neither of them will know.
05Reason 2: Fairer Negotiations
Second, openness makes negotiation fairer. Today, confident people, or people with good connections, often know what to ask for. With a published range, everyone starts with the same information.
06Reason 3: Trust
Third, openness builds trust. When a company explains how pay is decided, workers worry less about secret deals and focus more on their work.
07"But It Will Cause Jealousy"
Some people say openness will cause jealousy. I'd say jealousy mostly appears when differences can't be explained. If a company has clear, fair reasons for its pay, it shouldn't be afraid to share them.
08Conclusion
To conclude, the EU has shown that pay transparency can be written into law. Fair pay has nothing to hide. Let's stop treating salaries as a secret. Thank you.
Source: Directive (EU) 2023/970 of the European Parliament and of the Council (Pay Transparency Directive), EUR-Lex
Cover photo by stevepb on Pixabay