Pay Transparency: Strategic HR Considerations for Irish Organisations

From 2025, Organisations with 50 Employees or more are required to publish a gender pay gap report. While gender pay gap reporting is a fundamental aspect of the EU Pay Transparency Directive (the Directive), it is just one of a range of measures designed to better enforce the principle of equal pay for equal work.

Other key components of the Directive include:

• Pre-employment pay transparency for job seekers: Employers will be required to provide information about salary levels or ranges either in the job advertisement or in advance of the interview. Employers would also be prohibited from asking job applicants about their own pay history or their current rate of pay.
• Right to information for Employees: Employees will have the right to receive information about their individual pay level, as well as the average pay levels of workers in the same job category or performing work of equivalent value, categorised by gender.

Ireland has until June 2026 to fully implement the Directive which also includes joint pay assessments where a gender pay gap report reveals a 5% (or greater) gender pay gap in any category of workers as well as a prohibition on pay secrecy clauses. While the introduction of these new pay transparency measures will undoubtedly increase the compliance burden faced by Employers, there are strategic HR benefits to be harnessed by Organisations that view these developments as an opportunity to enhance trust with a range of stakeholders, support talent attraction and retention, and promote values that align with long-term business goals.

Pay Transparency: A Strategic Opportunity

Rather than viewing pay transparency purely through a compliance lens, forward-thinking business leaders are approaching the development as a strategic opportunity. Adare’s HR Barometer Series 9.1 found that one fifth of Organisations surveyed intend to modify their pay models in 2025/2026. 40% of those Organisations aim to enhance retention through revised pay structures confirming that senior leaders are already taking steps to address the introduction of greater pay transparency regulation. As well as compliance with the Directive, long-term strategic benefits of being proactive on pay transparency include:

1. Fit for Purpose Remuneration Frameworks: with greater public scrutiny coming down the tracks, Organisations have an opportunity to review their approach to pay, job‐categories, pay bands, bonus/incentive schemes, and Employee benefits generally to ensure they are fit for purpose both from compliance and strategic HR perspectives.
2. The Role of Pay in the Employer Value Proposition (EVP): in today’s competitive labour market, Organisations need to ensure they remain attractive places to work for both current Employees and potential recruits. Pay and rewards are core parts of the EVP. If pay is perceived as unfair, opaque, or misaligned with effort/skills /career path, it will undermine the credibility of other EVP components (e.g. career development, workplace culture). Conversely, a strong remuneration framework that is fair, transparent and consistent strengthens an Organisation’s EVP.
3. Promoting a More Inclusive Workplace: Even small businesses can benefit from promoting gender equality by addressing pay disparities. With the increased focus on pay transparency, Organisations are incentivised to foster an inclusive culture where Employees are paid fairly for their work.
4. Improved Talent Retention and Recruitment: As jobseekers gain more pay transparency rights in the coming years, Organisations that make efforts to close any unjustifiable pay gaps may have a competitive edge in attracting top talent. Conversely, failure to address the issue could result in losing out on skilled Employees who value transparent pay practices.
5. Minimising Risk: Organisations that embed pay transparency now will be well-positioned when the Directive takes effect. This reduces the risk of future legal exposure, Employee relations issues, or reputational damage from reactive pay audits or joint pay assessments.

Strategic Interventions

As we look ahead to full implementation of the Directive, executive teams have the opportunity to consider the following strategic interventions to take advantage of the growing emphasis on pay transparency.

1. Audit Your Current Pay Practices

Start by assessing where your Organisation stands. Conduct a pay audit and investigate if any pay gaps that exist are justifiable based on objective, non-gender-related factors.

2. Engage Leadership Early

Pay transparency will touch every part of the Organisation. Secure leadership buy-in by framing it as a business opportunity—not just a compliance task. Highlight how it can support Employee relations, brand, and commercial performance.

3. Develop Clear, Consistent Pay Structures

Whether using pay bands, job categories, or performance-based criteria, ensure pay structures, job descriptions, and career progression criteria do not include any gender-based disparities.

4. Train Managers on Pay Conversations

Managers play a critical role in communicating pay decisions. Train HR personnel and management on the new requirements and ensure that hiring managers understand the Directive’s rules regarding pay transparency in recruitment.

5. Build a Communication Strategy

Transparency doesn’t mean sharing everything with everyone—but it does mean being intentional about what you share, when, and how. Your strategy should educate Employees, set expectations, and reinforce your Organisation’s values. Be prepared for increased Employee inquiries into pay structures and potential pay gaps. Having clear, transparent communication around these issues will help foster trust.

Looking Ahead

Pay transparency is not a passing trend—it represents a regulatory shift in how Organisations approach pay, equity, and workforce strategy. Forward-thinking Organisations have an opportunity to demonstrate leadership in gender equality and position themselves as attractive Employers in a competitive market. For Irish business leaders, the coming months present a valuable window to take the lead in successfully navigating these regulations into 2026 and beyond.

At Adare, we are working with clients across Ireland in navigating this transition. Our Reward and Pay Equity Services include:

• Gender Pay Gap Analytics and Reporting
• Salary and Benefits Benchmarking
• Pay Transparency Compliance Audits
• Pay Transparency Policy and Compliance Framework
• Pay Transparency Communication Strategy

For support with turning compliance into a competitive advantage, get in touch today to start your Organisation’s pay transparency journey.