Written by Jo Hunt / 14th February 2025
The EU Pay Transparency Directive, adopted in April 2023, represents a landmark effort to address pay gaps and promote transparency across Europe. While the UK is no longer part of the EU, the directive holds valuable lessons for UK organisations, particularly in the higher education (HE) sector, where pay equity and transparency are critical for maintaining trust and compliance.
Here we explore the directive’s relevance to UK higher education and how analytical job evaluation schemes, like the Higher Education Role Analysis (HERA) scheme, can play a pivotal role in supporting pay transparency.
Understanding the EU Pay Transparency Directive
The directive mandates several measures aimed at ensuring pay equity, including:
Pay scale transparency: Requiring employers to disclose salary ranges in job advertisements.
Right to pay information: Allowing employees to request pay data for comparable roles.
Bans on prior pay history inquiries: Preventing pay-setting based on previous salaries.
Why the directive matters to UK higher education
Although not legally required in the UK, the directive is relevant to HE organisations due to:
Sector expectations:
HE institutions are often held to high standards for equity and transparency by students, staff, and advocacy groups such as trades unions. Aligning with best practices, such as those in the directive, demonstrates leadership in fairness.
Global recruitment:
Many HE institutions in the UK operate globally, recruiting from a diverse international talent pool. Transparent pay practices can provide a competitive edge in attracting top talent.
Policy influence:
The directive’s principles may influence future UK legislation. Proactively adopting these measures positions HE organisations as forward-thinking and prepared for change.
The role of HERA in promoting pay transparency
The Higher Education Role Analysis (HERA) scheme is uniquely suited to support pay transparency in HE. As an analytical job evaluation framework, HERA provides an objective, consistent approach to evaluating roles based on their responsibilities and requirements. Here’s how it supports the principles of the directive:
Objective job evaluation: HERA evaluates roles using a clear, evidence-based methodology. This seeks to eliminate subjectivity and bias, ensuring pay decisions are based on the value of the work, not the characteristics of the individual.
Fair pay structures: By systematically grading roles, HERA supports HE institutions to establish transparent and defensible pay scales. This aligns with the directive’s call for salary range disclosure and supports internal consistency.
Addressing pay gaps: HERA helps identify pay disparities, whether by gender, ethnicity, or other factors, and supports corrective action. This builds confidence among staff that pay practices are equitable.
Defensibility against equal pay claims: With its rigorous approach, HERA provides HE institutions with a robust defence against potential equal pay claims, reducing risk while fostering trust.
The broader benefits of pay transparency
Pay transparency isn’t just about compliance; it’s a catalyst for cultural transformation. Transparent practices supported by tools like HERA enhance employee engagement and trust, improve recruitment and retention, and contribute to a more inclusive workplace.
The EU Pay Transparency Directive serves as both a challenge and an opportunity for HE institutions. While it highlights areas for improvement, it also offers a chance to lead in equitable pay practices. By leveraging tools like the HERA scheme, HE organisations can strengthen their commitment to fairness, transparency, and inclusivity.
As we navigate the evolving landscape of pay equity, adopting proactive measures now will ensure the HE sector continues to set a standard for excellence and integrity in employment practices.
