{"id":2344,"date":"2026-05-07T14:18:49","date_gmt":"2026-05-07T14:18:49","guid":{"rendered":"https:\/\/www.alveria.it\/?p=2344"},"modified":"2026-05-07T14:18:50","modified_gmt":"2026-05-07T14:18:50","slug":"eu-directive-970-23-from-compliance-to-the-cultural-transformation-of-remuneration-in-organisations","status":"publish","type":"post","link":"https:\/\/www.alveria.it\/english\/2026\/05\/07\/direttiva-ue-970-23-dalla-compliance-alla-trasformazione-culturale-della-retribuzione-nelle-organizzazioni\/","title":{"rendered":"EU Directive 970\/23: from compliance to the cultural transformation of remuneration in organisations"},"content":{"rendered":"

7 June 2026 is a key deadline for European companies:<\/strong> by this date, Member States must have transposed the Directive (EU) 970\/23<\/strong> <\/a>on pay transparency. For many organisations, however, reducing this step to a mere regulatory compliance risks being a short-sighted reading.<\/p>\n

The Directive introduces significant obligations for all companies<\/strong>, 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.<\/p>\n

But the impact of regulation goes beyond compliance<\/strong>. It opens up a broader reflection: how are jobs in contemporary organisations evaluated, classified and remunerated?<\/p>\n

Beyond the pay gap: the real knot is the system<\/strong><\/h2>\n

The debate on the gender pay gap<\/a><\/strong> has often focused on the final indicator. However, organisational experience shows that pay inequalities do not only arise from wages per se<\/strong>, but by a chain of managerial decisions and HR: assignment of roles, access to strategic projects, performance evaluation criteria, growth paths.<\/p>\n

In this sense, even formally \u201cneutral\u201d systems can produce distorting effects if fuelled by unstructured or unmonitored everyday practices. The main challenge<\/strong> for companies is therefore not only to measure the gap, but understand its systemic causes.<\/strong><\/p>\n

Job evaluation and job classification: the heart of compliance<\/strong><\/h2>\n

One of the central elements of the Directive 970\/23<\/a><\/strong> is the principle of \u201cwork of equal value\u201d<\/strong>, which requires organisations to have structured position classification systems.<\/p>\n

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.<\/p>\n

In the absence of already structured systems, organisations are called upon to develop job evaluation models capable of reducing subjectivity<\/strong> and make internal classification criteria transparent.<\/p>\n

Remuneration analysis and legal risk management<\/strong><\/h2>\n

The Directive also significantly strengthens the role of remuneration analysis<\/strong>. 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.<\/p>\n

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.<\/p>\n

Of particular importance is the ability of companies to distinguish between justified wage differences<\/strong> (seniority, specific skills, additional responsibilities) and potentially discriminatory systemic misalignments.<\/strong><\/p>\n

Transparency and data: from compliance to governance<\/strong><\/h2>\n

A further element of change concerns the internal and external transparency.<\/strong> Organisations will be called upon to make more and more structured information available not only to the authorities, but also to workers and candidates.<\/p>\n

In this context, Remuneration reporting evolves from an administrative tool to a governance lever<\/strong>. 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.<\/p>\n

Transparency is no longer just an obligation, but a competitive element:<\/strong> influences employer branding, the ability to attract talent and internal trust.<\/p>\n

The role of HCM systems in transformation<\/strong><\/h2>\n

In this evolutionary scenario, the Human Capital Management systems<\/strong> assume an increasingly central role.<\/p>\n

Systems of HCM<\/a> such as the one in Alveria<\/a> represent a significant evolution in human resources management, becoming real integrated ecosystems<\/strong> of Human Capital Management, capable of supporting increasingly data-driven strategic decisions.<\/strong><\/p>\n

These systems enable organisations to govern key processes such as the evaluation of positions,<\/strong> to achieve results. competence management<\/a>,<\/strong> to achieve results. planning of growth paths<\/a><\/strong> and the\u2019retributive analysis,<\/strong> helping to ensure greater transparency, internal consistency and traceability of HR decisions.<\/p>\n

In a regulatory environment increasingly oriented towards transparency and fairness gli HCMS<\/a> <\/strong>are configured as compliance enablers,<\/strong> supporting companies in fulfilling complex regulatory requirements while transforming them into concrete levers of organisational and cultural evolution.<\/p>\n

A cultural transformation even before legislation<\/strong><\/h2>\n

The transposition of EU Directive 970\/23<\/strong>\u00a0cannot be approached as a simple regulatory compliance project. It requires a Structural rethinking of HR systems and the role of management in people management.<\/strong><\/p>\n

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.<\/p>\n

The real question for the coming months is therefore not just \u201care we compliant?\u201d, but \u201cis our people management system capable of producing equity in a stable and verifiable manner?\u201d.<\/strong><\/p>\n

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.<\/strong><\/p>\n

Source:<\/p>\n

People & Change 360<\/a><\/p>\n

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