With the EU Pay Transparency Directive coming into effect this year, there is a lot that HR and payroll teams need to figure out. Luckily, HiBob users have the tools they need right in the system. Join me, Mel, as I take you through exactly how HiBob can help you comply with the EU Pay Transparency Directive!
You can watch the video here, but I've also included the full transcript below:
Hi everyone, my name is Mel, and I'm a HR systems consultant here at Silver Cloud, specializing in HiBob implementations and support. And today I'm gonna be talking about the EU Pay Transparency Directive. The EU Pay Transparency is a big piece of legislation that has been the very hot topic at the moment and it's kicked in since June.
There is a lot of things, that you know, especially if you're based in the EU, that you need to do in order to comply with this new legislation. And Bob has been adapting their platform to ensure that they help you stay compliant and transparent. So today I'm just gonna talk you through some of the Bob updates that either have already happened or are in the pipeline to help you stay compliant with EU Pay Transparency.
But before we dive into the details, what I'll do is I'll talk you through what the new legislation means [00:01:00] So this slide gives a little bit of an overview of what all the new directive requirements and what they are. So one of the first ones is external reporting. So organizations must report on their gender pay gap.
The requirements around that become a little bit more strict, so they have to provide an annual report or every three years, depending on their company size and the report must be very comprehensive and include pay dispar- disparities by categories of worker, workers performing the same work or work of equal value.
So this is a very key thing because we will talk about that work of equal value and some of the things that Bob has adapted in relation to that. Then we have an internal equal pay assessment. So, if the external report that you provide reveals that your pay gap is more than 5% that cannot be justified by objective gender neutral criteria, organizations must conduct a joint paid assessment to address those unjustified disparities.
Very similar to when GDPR came in so employees had access to request information about their data and how it's being stored and handled. So now employees will have further rights to request information around their average pay levels broken down by sex and their category of workers.
So still talking about that piece around category of workers. And employers must provide this information. Um, I believe with the legislation they have around 60 days to provide this information and ensure that the, the pay criteria is objective and gender neutral when it comes to the pay transparency, a really interesting new update is that EU employers must disclose the starting salary and pay ranges for advertised positions and vacancies in their recruitment process.
They're also prohibited from asking candidates about their pay history as well. There's also an element around pay philosophy, so organizations should develop and communicate a very clear pay philosophy that outlines their approach to compensation, including their criteria for raises, promotions, and career progression.
And then last but not least, we have the worker compensation. So employers must ensure that fair compensation practices, including addressing pay gaps and providing compensation for victims of pay discrimination. What this outlines in a nutshell is a new process for fairer, more transparent pay around your employees, um, and a step forward for organizations to provide access to data to be more transparent for improving in ter- like fairness within employment.
But yeah, so this is all the things that this new legislation covers. And then moving on to based on the things that we've talked about now, what Bob has developed or is developing to help you stay compliant with these new elements. The first thing is in HiBob something that you will have access to if you're a core client, is, comprehensive DE&I dashboards with reporting capabilities, including a very good pay gap dashboard.
So you can use that dashboard, customize it, dive into the analytics to find how your female employees are paid compared to your male employees and drive some more insights from there. So this is something that's already available to clients who have the core Bob product within their DE&I dashboards under reports and analytics We then have the added features for those clients of you who have Bob Hiring or interested in Bob Hiring as a whole.
So Bob Hiring will include salary ranges to job openings which enables you to advertise the minimum and maximum salary range for a job role that you're advertising. The job catalog piece is something that again, exists for clients who have the Bob Core product and, uh, it lives within your org.
So job catalog is something that for those of you who have the Bob Core is shouldn't be unfamiliar. It's a feature available to all. But then there's now an added element to the job catalog, which we spoke about earlier, job category, work of equal value. Because when we, um, spoke, um, around earlier around, uh, external reporting, the reports must include pay disparities by categories of workers performing the same work or work of equal value.
So that's very key because when we talk about the job catalog, Bob accommodates with that new field to help with that reporting and calculations of compensation We also have, for those of you who have the Bob Compensation module, you have compensation bands. So given that you have the job catalog in place, you can link each job profile to a [00:06:00] compensation band, which helps you establish a, a clear mid, minimum, midpoint, and maximum salary ranges for every role.
And then again, for those of you have Bob Compensation, that's how you truly stay EU pay transparent because the Bob Compensation module helps you in collaboration with the job catalog and capture all the fields required when an employee makes a data request access. Um, so an upcoming feature in, in Bob will become available to clients using the Compensation module, and it will provide that quick access to compensation insight.
So once you've established a job catalog, once you've established your compensation bands within your job catalog you will be able to see some key metrics. So this will appear as a section within employee profiles, which will include all the fields that an employee can request, access to information of, which include the total compensation.
So the total compensation field on the top left is an OT field which combines your base salary all the variable payments that are currently active and employees are eligible for. Also that total compensation field takes into is relative to the employee's FT as well.
You then have the average total compensation, which is split by the work of e-equal value, the job category. So, this is all the employees in that category and their average. And then it breaks the compensation further by male average and female average. That's all the fields that become available to you with the upcoming Bob feature.
It's not available yet, but it's something that Bob is working on in the pipelines, and it will be available for those clients who have the compensation module. So once the pay transparency fields become available. If you're a HiBob client that uses compensation, you can leverage those fields into task lists and docs and e-sign to streamline those information requests, whereas employees can submit requests via their profile and then an automated docs and e-sign comes through them with those fields pu- pulled in, which completely, you know, removes you from that process or having to calculate that compensation piece yourself.
Bob will do it for you and as soon as the employee requests it, they can get access to that information very quickly. But yeah, so that's all on the upcoming features from Bob. If you're interested in HiBob as a whole or understanding a little bit more what Bob is doing to support EU pay transparency, feel free to contact us at Silver Cloud and book a demo, and I've linked here to our website where you can find how you can book a demo with us.
It's been lovely talking to you about the new updates and yeah, feel free to be in touch.