Pay Transparency: Are Employers in Ireland Prepared for Change? 

In recent years, the conversation around  pay transparency  has gained significant momentum in Ireland. Much like the trends we see across Europe, Irish organisations  are increasingly recognising the importance of being open about their compensation practices. This shift is influenced by various factors, including external pressures, changing workforce expectations, and the upcoming EU Pay Transparency Directive. While there isn’t an immediate legal requirement, the directive and broader global trends are encouraging organisations in Ireland to rethink their approach to pay transparency.

To gain a clearer picture of the current state of pay transparency among organisations, Mercer conducted an extensive survey involving 1,144 organisations globally, including 416 from across Europe, with a notable number from Ireland. The results are telling: 69% of survey participants in Ireland either have a pay transparency strategy in place or are actively working on one. This proactive stance reflects a commitment to aligning with anticipated legislative changes and meeting the expectations of today’s workforce.

However, despite this progress, there’s still a considerable amount of work to be done. For example, only 32% of organisations in Ireland reported that they share information about their pay policies on a global scale, and a concerning 31% do not disclose information on gender pay gaps. Additionally, 72% of organisations do not provide information on employee pay ranges, indicating significant opportunities for improvement in transparency.

The drive for pay transparency in Ireland is primarily motivated by compliance, with 97% of survey respondents identifying it as a key factor. Moreover, 48% of respondents in Ireland recognise that pay transparency is now an expectation among employees. Many organisations face challenges in this area; 67% struggle to develop and update their compensation structures, and 52% feel unprepared for the implications of new pay transparency requirements.

As Ireland approaches the implementation of these transparency measures—whether through market dynamics or forthcoming legislation—organisations must be ready to take action. Preparing for pay transparency involves several key steps: conducting a readiness assessment, focusing on data collection and stakeholder engagement, and establishing a clear vision for transparency.

For those looking for insights specific to Ireland, we invite you to explore the highlights of the latest trends. You can also download the full global report for a broader perspective on pay transparency practices. If you need tailored guidance on your pay transparency strategy, don’t hesitate to reach out to our team. Together, we can ensure your organisation is compliant, competitive, and well-prepared for the future.

Let’s work together to create a fair and equitable workplace for all.