By Joelle Boekhold, Senior Consultant at SuccessDay
The EU Pay Transparency Directive (EUPT) introduces new requirements around salary information, employees’ right to pay information, gender-neutral pay structures and pay gap reporting. For organisations, this means being able to understand, analyse and explain their compensation data in much more detail.
For customers, reporting is an obvious part of the preparation. But before looking at dashboards and reports, there is a more fundamental question to answer: is the data needed for EUPT actually available and usable? According to Joelle Boekhold, Senior Consultant at SuccessDay, this is currently one of the biggest challenges for organisations preparing for EUPT.
“Data cleanliness is one of the most important factors for EUPT. Before configuring the reports you need, the focus should be on getting the right data into Workday and making sure it can actually be used.”
Start With the Data
For many international organisations, not all compensation data is currently available in Workday. Information may be spread across different payroll vendors, systems and countries. Some organisations work with one payroll provider globally, while others have a different provider in each country.
The first step is therefore to understand what data you have and where it sits. Compensation data needs to be available, but the job catalogue also needs to be complete and up to date. Organisations also need to determine how they define and maintain work of equal value, which may differ between countries.
Before configuring EUPT reporting, organisations should therefore have a clear view of:
- where their compensation data is stored
- whether the required data is available in Workday
- which payroll vendors hold information outside Workday
- whether their job catalogue is complete and up to date
- how work of equal value is defined within the organisation
- whether the underlying data is clean enough to report on
If this information is incomplete or inconsistent, the same problems will show up in the reporting.
Defining Work of Equal Value
One of the areas organisations need to consider carefully is work of equal value.
Under EUPT, employees will be able to request information about their own pay level and average pay levels for colleagues performing the same work or work of equal value.
That requires more than having compensation figures available. Organisations need to be able to identify which employees and roles should be compared. An outdated or incomplete job catalogue can make that difficult. For organisations operating across several countries, it can become more complicated again, as the way work of equal value is determined may differ by country. Getting the job catalogue and the relevant fields in order is therefore an important part of EUPT preparation.
What Can You See in Workday?
Once the required compensation and job data is available in Workday, organisations can start using reporting to understand their position.
SuccessDay has developed several EUPT Reporting, Dashboard and Discovery Board configurations. Depending on the organisation’s setup and available data, these can provide insight into the gender pay gap globally or at a more detailed level, for example by:
- organisation
- job profile
- management level
- compensation grade
- other relevant organisational values
Discovery Boards can also show average, median, minimum and maximum total pay for groups based on equal value of work.
This allows HR and Compensation teams to look beyond one overall pay gap figure and examine where differences occur within the organisation.
Preparing for the Right to Information
Another important part of EUPT is employees’ Right to Information. Employees will be able to request information about their pay level and average pay levels for colleagues performing the same work or work of equal value. Organisations therefore need to consider how they will provide that information when a request is made.
SuccessDay’s reporting configurations can support organisations in retrieving the relevant information from Workday, provided the required compensation and job data is available and structured correctly. This is also a useful test of EUPT readiness. If an employee made such a request today, would you know where the required information is stored, which employees should be included in the comparison and how to retrieve the figures?
Know What You Have Before You Start Reporting
Joelle’s main advice to organisations preparing for EUPT is to start with an overview of their current situation.
“Start with getting all of the data ready and having an overview of where your data is sitting, whether that’s within Workday or outside of Workday.”
That means identifying the relevant data sources, understanding how compensation information reaches Workday and checking whether the job catalogue and equal-value information are ready to use. Only then does it make sense to decide what reporting is needed.
Every Workday environment is different, so there is no single EUPT reporting setup that will suit every organisation. SuccessDay offers different Reporting, Dashboard and Discovery Board options and can help determine which approach fits your Workday environment and EUPT requirements.
The starting point, however, is the same: know where your data is, make sure it is clean and get your job catalogue in order.
Preparing for EUPT?
Want to understand what EUPT reporting could look like in your Workday environment? Get in touch with SuccessDay to discuss the available options or request a demo.
