The taboo subject of salary transparency: Between shock and cultural change
Salary transparency is coming – and with it a cultural shift that is putting companies to the test.
Salary transparency: What companies are currently concerned about
The new EU directive on pay transparency, which comes into effect in 2026, is causing a stir in companies. What at first glance appears to be a bureaucratic project turns out, upon closer inspection, to be a full-blown cultural stress test. Because true transparency is far more than simply disclosing salary figures: it's a reflection of the company's lived culture – and its blind spots.
Many companies are currently under immense pressure. They must disclose the gender pay gap, create transparent job structures, and base salary decisions on objective, gender-neutral criteria – a complex and demanding task. This involves far more than just data analysis. New structures, clear roles, and fair evaluation methods are required.
Pay transparency demands comprehensive change
The requirements of the German Pay Transparency Act are prompting many companies to take a closer look at their existing structures. The aim is to understand where genuine equality and fairness in remuneration are already practiced – and where further action is needed.
This raises some key questions:
- Which activities within the company are truly equivalent?
- Are there clear and transparent salary ranges for each job level?
- And are equal or equivalent tasks truly paid equally – regardless of gender, origin, or employment model?
These questions do not only concern the HR Department, but all management levels. Because implementing the salary transparency directive is far more than just a compliance issue – it is a company-wide culture and change process.
Companies under pressure: Fairness and traceability are in demand.
Many organizations are already feeling the effects of, how sensitive the topic of salary isIt is emotionally charged, often taboo, and for many employees a central expression of appreciation, fairness, and trust.
The concern about internal tensions is therefore not unfounded: When salaries become more transparent, employees recognize potential inequalities, compare themselves with others, and ask questions – or even demands. At the same time, managers must prepare for a new kind of conversation in which accountability and openness are paramount.
This is particularly challenging in organizations that have previously been characterized by individual decisions, historically established salary structures, and a lack of transparency. Here, the new guideline means not just more disclosure, but a genuine cultural shift.
In short, the new salary transparency directive will certainly bring one thing: change. And it challenges companies to honestly examine their compensation culture – because in the future, the burden of proof lies with the companies.
Salary transparency – What companies need to know now
Below you will find the most important questions and answers about the new EU directive on salary transparency, what companies now face – and what they should prepare for.
1. Who is affected by the salary transparency directive – and why?
The salary transparency policy is not solely an HR project. It affects all levels of the company:
- Managers must be able to argue in a comprehensible and objective manner.
- Employees should understand how salary is calculated.
- Top management must lead by example in the cultural change.
- People & Culture becomes the central change agent for processes, communication and attitude.
2. Is the Pay Transparency Act only about the gender pay gap?
No. While the focus is on the gender pay gap, genuine pay equality This affects all employees. Part-time workers, older employees, people with a migration background, or those with caregiving responsibilities are also frequently structurally disadvantaged. Anyone who takes transparency seriously must consider all facets of fairness.
3. What will change in companies as a result of the new salary transparency?
Salary transparency can be a strategic advantage:
- Companies that practice fair compensation gain trust and talent.
- Clear salary structures prevent demotivation and increase engagement and loyalty.
4. What do companies need to pay attention to when implementing transparency?
- The topic of salary is highly emotional and closely linked to the self-esteem of employees.
- Transparency must be introduced sensitively – not just factually.
- This requires clear rules, training, dialogue formats and a new language surrounding the topic of salary.
5. Salary transparency – more of an opportunity or a crisis?
Yes, transparency can become expensive in the short term. If salaries need to be adjusted because they are already higher than the current salary, or if new employees earn more from the start than long-term colleagues in the same role – then pressure is clearly created. The potential harmonization of different collective bargaining agreements within corporations or the disclosure of realistic salary ranges in job postings can also lead to a short-term increase in costs.
But those who only focus on the risks miss the real opportunity: because transparency is a strategic investment in trust, fairness and future viability.
Salary transparency as a strategic advantage
Companies that address the EU Pay Transparency Directive early and systematically can position themselves as pioneers – and thus specifically attract talent who have been disappointed by their previous employers. Many employees have long recognized that equal pay is not just a legal issue, but a cultural one. They are looking for employers who demonstrate a commitment, rather than simply complying with regulations.
Transparency creates clarity – and clarity creates commitment.
Employees who understand how salaries are determined, the criteria for promotions, and how performance is evaluated develop a stronger sense of control and fairness. This fosters personal responsibility, reduces employee turnover, and strengthens identification with the company.
Leadership culture also benefits: When salary decisions are no longer made "by gut feeling" but are based on objective, gender-neutral criteria, a new performance culture emerges. Decisions become transparent, discussions become more objective, and trust in managers grows.
And last but not least: salary transparency protects against costly mistakes.
Establishing clear salary guidelines prevents excessive individual decisions, reduces internal imbalances, and allows for better control of personnel costs. Instead of salary chaos, structure is created – and structure is the foundation for fairness and inclusion.
Conclusion: Salary transparency is not a risky HR exercise – but a holistic cultural project.
The EU directive on pay transparency is a wake-up call. It forces companies to examine their compensation culture – and the values they truly uphold. Those who boldly embrace change can not only comply with legal requirements but also create genuine fairness. And that's about far more than just pay.
