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PayAnalytics feature supports EU pay transparency directive

PayAnalytics includes a pay gap correction feature to help clients comply with the EU pay transparency directive. This feature, introduced in early 2023, lets users target raises to specific groups of employees in order to plan corrective action.

On March 30, 2023, the European Parliament passed the EU pay transparency directive into law. The directive requires organizations to measure, correct and report on pay gaps within groups. These groups or categories are workers who do the same work or work of equal value to the organization.

As the directive has moved through the European Parliament, PayAnalytics has been carefully reviewing each new draft, remaining aware of the latest proposed requirements, and supporting EU employers. Now that the directive has been finalized, we are happy to say that PayAnalytics satisfies its criteria for pay equity analysis and support for pay transparency and reporting.

In early 2023, we integrated a feature that focuses on pay gap correction within groups. This feature allows organizations to target raises to specific groups of employees.

Per the EU directive, employers must take corrective action if they identify an unexplained pay gap of 5% or greater within any group of employees. The gap needs to be corrected within six months. Otherwise, a gender action plan needs to be created to outline how the gap will be closed long-term.

Using the pay gap correction feature, users can target raises to specific groups of employees, rather than the whole organization. For instance, if a gap is identified among customer service workers, users can view only their customer service workers to see which employees need raises. This makes it easier for companies to plan corrective action.

By streamlining pay gap correction, we aim to make the whole EU pay transparency directive compliance process easier for our customers. We also offer a free e-book to help employers understand and follow the EU directive.

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