How a 600 employee company turned pay transparency into a competitive advantage

Pay transparency is no longer an abstract concept: it has become both a regulatory requirement and a major strategic lever for organisations. When managed effectively, it also becomes an opportunity to build a robust long‑term compensation framework, improve internal equity, and strengthen employer attractiveness.

In this case study, we explore how a 600‑employee company, operating across several EU countries, used compliance with the directive as a driver for positive transformation.

A structured, progressive… and above all effective approach.

Context: a multi‑country organisation lacking cohesion

Before the project, the company faced several major challenges:

Fragmented local pay structures, inherited from successive mergers
Significant gender pay gaps in several key roles
No shared methodology for job grading
Wide managerial discretion in setting salaries at hiring and during pay reviews, generating inconsistencies

In other words, a typical context where the upcoming pay transparency directive could become a source of risk… or a powerful catalyst for transformation.

The approach: 3 key steps to building sustainable pay transparency

Step 1: Audit and mapping – Start with real data

The first phase involved auditing payroll data, mapping roles, and establishing the foundations of a harmonised job evaluation system (job grading).
Objective: enable the comparison of work of equal value — an essential condition for any pay transparency initiative.

Step 2: Building a group‑level pay structure – Clear, coherent and market‑aligned

The company then developed a unified compensation grid covering all countries.
Key principles:

Consistent and defensible min–mid–max salary ranges
Market benchmarks to support decisions
Positioning rules based on profile and performance
Explicit management of progression within salary bands

This step replaced a patchwork of local practices with a clear and equitable framework.

Step 3: Training and communication – Bringing pay transparency to life

Once the foundations were in place, the next step was dissemination:

Training all managers on the new rules
Creating a shared FAQ
Developing conversation scripts to address sensitive questions
Rolling out an internal and then external communication strategy (incl. job ads)

This “change” dimension ensured that pay transparency became a practical, lived reality rather than a purely technical exercise.

Results: when pay transparency drives performance

The benefits were visible within the first few months:

Significant reduction in unexplained pay gaps, in line with EU requirements
Ability to publish consolidated indicators compliant with the directive
Reduced turnover among key populations
Higher offer‑acceptance rates thanks to a clearer and more transparent compensation policy

Pay transparency not only enabled compliance: it made the organisation fairer, more attractive, and more coherent.

What to remember: pay transparency is also a strategic opportunity

This case study illustrates one key point: when implemented well, pay transparency goes far beyond compliance.

It becomes:

a pillar of HR governance
a lever for employer branding
a driver of organisational performance
and a concrete way to embed pay equity in day‑to‑day practices

Want to turn the directive into a competitive advantage?

Arago supports organisations in:

data audits and job definition
designing robust and defensible pay structures
training managers
internal and external communication
and implementing a simple, actionable and compliant framework

Contact us for an assessment.