{"id":2245,"date":"2026-03-03T09:32:34","date_gmt":"2026-03-03T09:32:34","guid":{"rendered":"https:\/\/www.alveria.it\/?p=2245"},"modified":"2026-03-05T15:07:45","modified_gmt":"2026-03-05T15:07:45","slug":"pay-transparency-and-digitisation-of-hr-processes-the-eu-directive-2023-970-as-a-lever-for-organisational-transformation-2245","status":"publish","type":"post","link":"https:\/\/www.alveria.it\/english\/2026\/03\/03\/trasparenza-retributiva-e-digitalizzazione-dei-processi-hr-la-direttiva-ue-2023-970-come-leva-di-trasformazione-organizzativa-2245\/","title":{"rendered":"Pay transparency and process digitisation HR: EU Directive 2023\/970 as a lever for organisational transformation"},"content":{"rendered":"<p class=\"wp-block-paragraph\">In the course of the <strong>workshop 'HR solutions and tools to respond to the EU pay transparency directive'<\/strong>promoted by the HR Innovation Observatory of the Politecnico di Milano, we proposed a clear reading: the <strong>EU Directive 2023\/970<\/strong> is not a mere regulatory compliance. It is a powerful catalyst for organisational transformation. For this reason, our intervention started from the Directive in its Community formulation, and not from the preliminary national proposal. The reason is simple: the European source defines a structured, coherent legal framework that can already be fully integrated into corporate organisational systems. Working on this basis means building solid models that can also be defended in case law, and not merely chasing after partial interpretations.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Which corporate function is really involved?<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">On a first reading, the directive appears to be a Payroll matter. On a second analysis, it appears more consistent with Compensation &amp; Benefits. But an in-depth reading leads to a different conclusion: the function really involved is the<strong>Organisation<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>The Directive deals with:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Work design<\/li>\n\n\n\n<li>Structuring of positions<\/li>\n\n\n\n<li>Classification Systems<\/li>\n\n\n\n<li>Change management<\/li>\n\n\n\n<li>Organisational culture<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">The principle of <strong>'work of equal value = equal pay'<\/strong> forces companies to make a cultural leap: from generic role descriptions to the structured design of the <strong>organisational positions<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It is no longer enough to answer the question:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><strong><em>\"What does this person do?\"<\/em><\/strong><\/p>\n<\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph\">Objective and measurable answers must be given to:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><em>\"What is the organisational value of this position?\"<\/em><\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Professional vs. organisational position: the correct level of analysis<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">One of the central issues addressed in the workshop concerns the distinction between:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Professional figure<\/strong> \u2192 useful for external equity analysis<\/li>\n\n\n\n<li><strong>Organisational position<\/strong> \u2192 indispensable for internal equity analysis<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>The professional figure<\/strong> is a broad and comparative category. It is not sufficiently granular to analyse internal differences or to support robust statistical models. <strong>The organisational position,<\/strong> on the other hand, represents the correct level of analysis because it allows us to:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Identifying objective and gender neutral characteristics<\/li>\n\n\n\n<li>Applying linear regression models<\/li>\n\n\n\n<li>Using the Oaxaca-Blinder decomposition model<\/li>\n\n\n\n<li>Constructing defensible statistical analyses<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">If we are serious about applying the <strong><a href=\"https:\/\/www.alveria.it\/english\/2026\/02\/10\/eu-directive-970-2023-transforming-compliance-into-a-culture-of-value-2216\/\">EU Directive 970\/2023<\/a><\/strong>we must shift the analytical centre of gravity to the position.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>The role of HCMs: evolving the concept of 'position'<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">I <strong><a href=\"https:\/\/www.hcms.it\/\">HCM systems<\/a><\/strong> already allow for the management of organisational positions. However, in order to respond in a structured way to the directive, the model needs to be evolved.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>In our approach, each position is defined through four dimensions, consistent with European criteria:<\/strong><\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Role purposes<\/strong> - strategic contribution to corporate objectives<\/li>\n\n\n\n<li><strong>Autonomy and responsibility<\/strong> - decision-making level and impact on results<\/li>\n\n\n\n<li><strong>Required skills<\/strong> - knowledge, skills, experience<\/li>\n\n\n\n<li><strong>Working conditions<\/strong> - operational context and environmental complexity<\/li>\n<\/ol>\n\n\n\n<p class=\"wp-block-paragraph\">Each attribute is assigned a score. The sum determines the <strong>organisational weight of the position<\/strong>. This makes it possible to transform a qualitative concept into a quantitative variable, the basis for advanced statistical analysis.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>From census to clustering: building the internal labour market<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Once the positions have been defined, clustering algorithms (e.g. K-means) can be applied to identify homogeneous groups of organisational complexity.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The result is the construction of a <strong>internal labour market by cluster<\/strong>within which it is possible:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Analysing pay distributions<\/li>\n\n\n\n<li>Check internal consistency<\/li>\n\n\n\n<li>Identifying possible distortions<\/li>\n\n\n\n<li>Applying regression models to identify unjustified gaps<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">On each cluster, it becomes possible to determine the correct wage positioning and isolate any differences not explained by the objective variables.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">The Oaxaca-Blinder model: isolating the real gap<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>The Oaxaca-Blinder model<\/strong> allows the pay gap between groups (e.g. men and women) to be decomposed into:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Part explained by observable characteristics<\/strong> (experience, skills, responsibility)<\/li>\n\n\n\n<li><strong>Part not explained <\/strong> (potential area of discriminatory risk)<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Variables considered include:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Level 1 - Basic<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Job grade\/cluster<\/li>\n\n\n\n<li>Headquarters<\/li>\n\n\n\n<li>FTE<\/li>\n\n\n\n<li>Type of contract<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Level 2 - Skills and performance<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Seniority<\/li>\n\n\n\n<li>Performance over the last 3 years<\/li>\n\n\n\n<li>Skills detected<\/li>\n\n\n\n<li>Qualifications<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Level 3 - Strategic Responsibilities<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Managed Budget<\/li>\n\n\n\n<li>Resource management<\/li>\n\n\n\n<li>Managing fragile resources<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>To these are added dummy variables with a multiplier effect<\/strong> (certifications, delegations, management career vs. individual contributor, substitutability rate).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>This approach allows Compensation Managers to move from a defensive to a proactive and data-driven logic.<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Compliance Dashboards and Bias Management<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The Directive requires specific indicators and regular reporting. But the real value is not in the report: it is in the <strong>continuous monitoring<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Through dedicated dashboards it is possible:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Monitoring regulatory KPIs in real time<\/li>\n\n\n\n<li>Highlight pay gender gaps above the 5% threshold<\/li>\n\n\n\n<li>Analysing bias in remuneration policies<\/li>\n\n\n\n<li>Identifying inequalities in career opportunities<\/li>\n\n\n\n<li>Supporting the preparation of non-financial statements<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Compliance must not be an annual event. It must become a structural process.<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Towards natively compliant systems<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The real transformation occurs when:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>La <strong>organisational design<\/strong> is structured<\/li>\n\n\n\n<li>La <strong>measurement<\/strong> is objective and statistical<\/li>\n\n\n\n<li>La <strong>compliance<\/strong> is integrated into processes<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">It is not a question of adding a control layer afterwards. It is about designing HR systems that are <strong>natively compliant<\/strong>. And that is exactly what the <strong><a href=\"https:\/\/www.hcms.it\/org-position\/\">Organisational Positions Module<\/a><\/strong> of <a href=\"https:\/\/www.alveria.it\/english\/\">Alveria<\/a>:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Access to the position's cluster<\/li>\n\n\n\n<li>Automatic highlighting of the pay gender gap<\/li>\n\n\n\n<li>Calculation of Deviation on Total Compensation<\/li>\n\n\n\n<li>Reporting anomalies above the regulatory threshold<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">EU Directive 2023\/970 is not just a regulatory deadline. <\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">It is an opportunity to:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Strengthening the credibility of the remuneration system<\/li>\n\n\n\n<li>Making organisational value management objective<\/li>\n\n\n\n<li>Integrating advanced analytics into processes HR<\/li>\n\n\n\n<li>Driving structural cultural change<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">If you wish to learn more about how the <strong><a href=\"https:\/\/www.hcms.it\/org-position\/\">Organisational Positions Module<\/a><\/strong> can support your company in building a natively compliant system, please contact us for a dedicated in-depth session.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><a href=\"https:\/\/www.hcms.it\/contatti\/#contatti\">Request a customised demo<\/a> of the module<\/strong> <strong>Organisational Positions<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>","protected":false},"excerpt":{"rendered":"<p>Presentation by Filippo Cannav\u00f2 at the workshop \u201cHR solutions and tools to comply with the EU Pay Transparency Directive\u201d.<\/p>","protected":false},"author":2,"featured_media":2246,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":111,"footnotes":""},"categories":[39],"tags":[],"class_list":["post-2245","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-consulenza"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.9 - 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