By 2026, all European Member States must ensure that their wage policies have been reformed to ensure pay transparency, obliging companies across the EU to communicate more openly about their wage policies.
The reform contains measures such as a right to know the pay levels for staff doing the same work or work of equal value, gender pay-gap reporting across all EU Member States and information rights for job seekers.
"For many employees, pay is still a sensitive issue," Maaike De Prins, HR consultant at HR services company SD Worx, said on Flemish radio on Tuesday. "But no longer for everyone."
Almost half of Belgian employees have no problem communicating openly and transparently about their pay package, according to SD Worx. A quarter, however, still prefer to keep that information to themselves.
Openness
"The younger generation is much more outspoken in this, they share a lot more details. They also dare to be a bit sharper in salary negotiations. For older generations, remuneration remains a more private topic," De Prins added.
An employer who grants extras to one employee but on the condition that they don't tell colleagues makes employees wonder about openness in other respects and about other people's pay packages, ultimately creating an environment of distrust in the workplace.
"If you give someone more pay it is important to communicate why you are doing so. If it is about a certain expertise you like to have in-house, call it that," De Prins said. "Then it will also be immediately clear to colleagues why you are doing it."
Credit: Pxhere
De Prins highlights key parameters when building a pay policy: "We always start from the roles and functions an organisation needs, regardless of who is already sitting in those chairs. You have to view that critically."
On the other hand, there is also the need for internal 'fairness,' as employees quickly compare themselves. "[Employers] want to give them future prospects by not favouring the loud shouters but by putting the right people in the right places."
Making pay policy transparent in a company is not always easy: there are often certain achievements and historical situations that management cannot ignore. SD Worx endorses a thorough review before taking these decisions, though acknowledges that this can be a stressful process.
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Taking away employees' pay is not possible in Belgium, something that is monitored by the trade unions. But there are instances in which people take a step down and earn less as a result. "But in Belgium, we do not see that happening very often yet."
De Prins stressed the importance of an open pay policy to give companies insights into how they stand alongside their competitors. "You also put certain things back in focus."
However, creating such a policy takes quite some time. "Your wage policy has to be in line with your strategic policy." De Prins cautions that "This is not possible overnight."
