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EU Directive 970/23: from compliance to the cultural transformation of remuneration in organisations
May 7, 2026
Alveriapress
EU Directive 970/23: from compliance to the cultural transformation of remuneration in organisations
7 June 2026 is a key deadline for European companies: by this date, Member States must have transposed the Directive (EU) 970/23 on pay transparency. For many organisations, however, reducing this step to a mere regulatory compliance risks being a short-sighted reading.
The Directive introduces significant obligations for all companies, and in particular for those with more than 100 employees: transparency on pay criteria, structured reporting on the gender pay gap, strengthening of workers' information rights and a principle that is bound to have a profound impact on the dynamics of litigation, namely the reversal of the burden of proof in cases of wage discrimination.
But the impact of regulation goes beyond compliance. It opens up a broader reflection: how are jobs in contemporary organisations evaluated, classified and remunerated?
Beyond the pay gap: the real knot is the system
The debate on the gender pay gap has often focused on the final indicator. However, organisational experience shows that pay inequalities do not only arise from wages per se, but by a chain of managerial decisions and HR: assignment of roles, access to strategic projects, performance evaluation criteria, growth paths.
In this sense, even formally “neutral” systems can produce distorting effects if fuelled by unstructured or unmonitored everyday practices. The main challenge for companies is therefore not only to measure the gap, but understand its systemic causes.
Job evaluation and job classification: the heart of compliance
One of the central elements of the Directive 970/23 is the principle of “work of equal value”, which requires organisations to have structured position classification systems.
This implies a major cultural shift: from position descriptions to their comparable evaluation through objective criteria. Skills, responsibility, commitment and working conditions become the four key dimensions on which to build coherent and defensible professional architectures.
In the absence of already structured systems, organisations are called upon to develop job evaluation models capable of reducing subjectivity and make internal classification criteria transparent.
Remuneration analysis and legal risk management
The Directive also significantly strengthens the role of remuneration analysis. It is no longer just a matter of calculating the average or median gender pay gap, but of carrying out analyses by clusters of comparable jobs, identifying significant deviations and documenting any objective justifications for them.
In this scenario, the threshold of attention is raised: unexplained differences must be interpreted and, if necessary, corrected. The objective is not only the reduction of the gap, but the construction of a solid and defensible documentation in case of litigation.
Of particular importance is the ability of companies to distinguish between justified wage differences (seniority, specific skills, additional responsibilities) and potentially discriminatory systemic misalignments.
Transparency and data: from compliance to governance
A further element of change concerns the internal and external transparency. Organisations will be called upon to make more and more structured information available not only to the authorities, but also to workers and candidates.
In this context, Remuneration reporting evolves from an administrative tool to a governance lever. Indicators such as internal mobility, access to training, participation in leadership paths and distribution of opportunities become an integral part of the analysis of the value of work.
Transparency is no longer just an obligation, but a competitive element: influences employer branding, the ability to attract talent and internal trust.
The role of HCM systems in transformation
In this evolutionary scenario, the Human Capital Management systems assume an increasingly central role.
Systems of HCM such as the one in Alveria represent a significant evolution in human resources management, becoming real integrated ecosystems of Human Capital Management, capable of supporting increasingly data-driven strategic decisions.
These systems enable organisations to govern key processes such as the evaluation of positions, to achieve results. competence management, to achieve results. planning of growth paths and the’retributive analysis, helping to ensure greater transparency, internal consistency and traceability of HR decisions.
In a regulatory environment increasingly oriented towards transparency and fairness gli HCMS are configured as compliance enablers, supporting companies in fulfilling complex regulatory requirements while transforming them into concrete levers of organisational and cultural evolution.
A cultural transformation even before legislation
The transposition of EU Directive 970/23 cannot be approached as a simple regulatory compliance project. It requires a Structural rethinking of HR systems and the role of management in people management.
Organisations that are able to interpret this transition as an opportunity for evolution - and not just compliance - will benefit from more coherent systems, more transparent decision-making processes and greater legal and reputational resilience.
The real question for the coming months is therefore not just “are we compliant?”, but “is our people management system capable of producing equity in a stable and verifiable manner?”.
The deadline of 7 June 2026 marks a regulatory milestone, but above all a starting point for a new season of HR management in Europe.
Source:
CONSULTANCY, TRAINING, HR DIGITALIZATION AND CORPORATE SOLUTIONS, DISCOVER THE ALVERIA METHOD. GET READY FOR CHANGE.
7 June 2026 is a key deadline for European companies: by this date, Member States must have transposed the Directive (EU) 970/23 on pay transparency. For many organisations, however, reducing this step to a mere regulatory compliance risks being a short-sighted reading.
The Directive introduces significant obligations for all companies, and in particular for those with more than 100 employees: transparency on pay criteria, structured reporting on the gender pay gap, strengthening of workers' information rights and a principle that is bound to have a profound impact on the dynamics of litigation, namely the reversal of the burden of proof in cases of wage discrimination.
But the impact of regulation goes beyond compliance. It opens up a broader reflection: how are jobs in contemporary organisations evaluated, classified and remunerated?
Beyond the pay gap: the real knot is the system
The debate on the gender pay gap has often focused on the final indicator. However, organisational experience shows that pay inequalities do not only arise from wages per se, but by a chain of managerial decisions and HR: assignment of roles, access to strategic projects, performance evaluation criteria, growth paths.
In this sense, even formally “neutral” systems can produce distorting effects if fuelled by unstructured or unmonitored everyday practices. The main challenge for companies is therefore not only to measure the gap, but understand its systemic causes.
Job evaluation and job classification: the heart of compliance
One of the central elements of the Directive 970/23 is the principle of “work of equal value”, which requires organisations to have structured position classification systems.
This implies a major cultural shift: from position descriptions to their comparable evaluation through objective criteria. Skills, responsibility, commitment and working conditions become the four key dimensions on which to build coherent and defensible professional architectures.
In the absence of already structured systems, organisations are called upon to develop job evaluation models capable of reducing subjectivity and make internal classification criteria transparent.
Remuneration analysis and legal risk management
The Directive also significantly strengthens the role of remuneration analysis. It is no longer just a matter of calculating the average or median gender pay gap, but of carrying out analyses by clusters of comparable jobs, identifying significant deviations and documenting any objective justifications for them.
In this scenario, the threshold of attention is raised: unexplained differences must be interpreted and, if necessary, corrected. The objective is not only the reduction of the gap, but the construction of a solid and defensible documentation in case of litigation.
Of particular importance is the ability of companies to distinguish between justified wage differences (seniority, specific skills, additional responsibilities) and potentially discriminatory systemic misalignments.
Transparency and data: from compliance to governance
A further element of change concerns the internal and external transparency. Organisations will be called upon to make more and more structured information available not only to the authorities, but also to workers and candidates.
In this context, Remuneration reporting evolves from an administrative tool to a governance lever. Indicators such as internal mobility, access to training, participation in leadership paths and distribution of opportunities become an integral part of the analysis of the value of work.
Transparency is no longer just an obligation, but a competitive element: influences employer branding, the ability to attract talent and internal trust.
The role of HCM systems in transformation
In this evolutionary scenario, the Human Capital Management systems assume an increasingly central role.
Systems of HCM such as the one in Alveria represent a significant evolution in human resources management, becoming real integrated ecosystems of Human Capital Management, capable of supporting increasingly data-driven strategic decisions.
These systems enable organisations to govern key processes such as the evaluation of positions, to achieve results. competence management, to achieve results. planning of growth paths and the’retributive analysis, helping to ensure greater transparency, internal consistency and traceability of HR decisions.
In a regulatory environment increasingly oriented towards transparency and fairness gli HCMS are configured as compliance enablers, supporting companies in fulfilling complex regulatory requirements while transforming them into concrete levers of organisational and cultural evolution.
A cultural transformation even before legislation
The transposition of EU Directive 970/23 cannot be approached as a simple regulatory compliance project. It requires a Structural rethinking of HR systems and the role of management in people management.
Organisations that are able to interpret this transition as an opportunity for evolution - and not just compliance - will benefit from more coherent systems, more transparent decision-making processes and greater legal and reputational resilience.
The real question for the coming months is therefore not just “are we compliant?”, but “is our people management system capable of producing equity in a stable and verifiable manner?”.
The deadline of 7 June 2026 marks a regulatory milestone, but above all a starting point for a new season of HR management in Europe.
Source:
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CONSULTANCY, TRAINING, HR DIGITALIZATION AND CORPORATE SOLUTIONS, DISCOVER THE ALVERIA METHOD. GET READY FOR CHANGE.