With the new demands for pay transparency, keeping track of the annual pay survey is more crucial than ever. Does your company have the right procedures and tools in place?
Addressing the wage gap between women and men is the goal of the pay transparency directive adopted by the EU in May 2023. Specifically, it requires employers to map and report on wage disparities while becoming more transparent in their communication with both employees and job seekers. The directive must be implemented into Swedish law by June 2026.
So, what do the new rules mean for your company? Do you have a plan to meet the new requirements, or do you need to adjust your processes? Now is the right time to ensure you have the appropriate tools in place.
Pay Surveys – A Key Component of the Pay Transparency Directive
One of the most crucial elements of the directive is the pay survey. Currently, companies are required by the Swedish Discrimination Act to map out wage differences between men and women performing equal or equivalent work. However, the new directive tightens these requirements. In practice, this means that companies with at least 100 employees must not only analyze wage disparities but also report the findings to the Equality Ombudsman (DO).
If there are wage differences of five percent or more, as an employer, you must submit a report to the DO, either justifying the differences objectively or outlining the measures to be taken to reduce the gap. Failure to meet these requirements can result in damages and fines.
Read more: Pay Transparency Soon to Be Swedish Law – Here's What You Need to Know.
Conducting a pay survey can be complex and time-consuming, especially if the company lacks efficient data collection processes and relies on spreadsheets and manual methods. But there is a smarter way! With the pay survey tool in Flex HRM, the process becomes both smoother and more secure. All information is gathered in one place – a single click is enough to get a summary of salary data, gender distribution, and any wage disparities. Additionally, there are educational features that make it easy to do the right thing at every step – from job evaluation and analysis to action planning.
Read more: Pay Surveys – Eight Questions and Answers.
Enhancing the Pay Survey in Flex HRM
To understand how Flex HRM will assist you in meeting the stricter requirements for pay surveys and related reporting, we spoke with Linda Tesell, Product Manager at Flex Applications.
– The pay survey in Flex HRM already meets the basics of the pay transparency directive, but a few minor additions will be made. Primarily, certain types of absences will be included in the analysis to provide a comprehensive view of potential inequalities. This is a direct adaptation to the directive, which states that parental leave and some other absences should also be analyzed for their impact on salary development, she explains.
– Additionally, we will ensure that you can easily and smoothly generate the reports needed to comply with the directive, she adds.
But that's not all. Several smaller improvement projects are also underway:
– After interviewing several customers, we've gained valuable insights that we're using to refine certain details. For instance, the layout of the analysis views will be revamped to present graphs more clearly, as these are typically the first thing users look for when entering the pay survey.
The Initial Reporting Will Be Based on Data from 2026
Linda and her team are closely monitoring the implementation of the directive in Sweden to ensure the system keeps pace with the new requirements.
– The Swedish investigation into how the pay transparency directive will be incorporated into national law is still under review in parliament, so we are awaiting the final details. The first report under the directive is scheduled for 2027, but it will be based on data collected in 2026. Therefore, we plan to have most changes in place in Flex HRM by 2025.
Companies that already have an efficient process for their pay surveys will be well-prepared for the new transparency requirements, according to Linda.
– My advice is to review your company’s pay survey procedures as soon as possible to ensure you're well prepared when the new requirements take full effect. The key to success is having an efficient way to collect and analyze your data in compliance with current regulations. If your company already uses the pay survey feature in HRM, you have a solid foundation to meet the new pay transparency directive requirements.
Simplify Pay Surveys and Comply With Legal Requirements Using Flex HRM
Tired of struggling with spreadsheets and manual transfers? Here's how the pay survey tool in Flex HRM makes the process both easier and more secure:
- Automated and fast process – saves time and reduces the risk of errors.
- All data consolidated in one place – say goodbye to Excel files and manual transfers between different systems.
- Smooth job evaluation and analysis – intuitive support for assessing equal and equivalent work and identifying unjustified wage differences.
- Easy to repeat – once the preparations and job evaluations are done, you can easily transfer them to the next year's survey.
- Ready-made reports in a few clicks – simple to generate reports and action plans according to legal requirements.
- GDPR-compliant – handles sensitive personnel data safely and securely.
