An increasing number of companies in Belgium communicate openly about pay, while more discussions surrounding salary are also taking place among colleagues, new research by HR expert Acerta Consult shows.
In about six in ten companies, there is open communication about remuneration. In 30% of cases, this open communication applies to the whole company, in 29% of cases colleagues with the same functions know from each other what they earn. In 41% of companies, employees' pay packages are not discussed.
"The general lack of transparency about pay levels within organisations results in pay discrimination and gender bias going unnoticed," said Dries Rutten, legal expert at Acerta Consult.
No transparency, no trust
In March 2023, the European Parliament passed a directive to make employers enforce wage transparency and to introduce penalties for those who do not respect it. The move aimed to combat the discriminatory differences in earnings between men and women.
The directive – which will apply to employers with 150 employees or more from the working year 2026 onwards – laid down guidelines on how employers should be transparent about the criteria that determine salaries and pay increases for this reason.
The guidelines also include communication with prospective employees: job applicants will have the right to receive information from the prospective employer about the starting salary or pay scale, and an employer may not ask about applicants' salary history, for example.
"Affected organisations will have to report on the gender pay gap to national governments from 2027," Rutten added. "The aim is to finally make 'equal pay for equal work' enforceable. If the reporting shows a pay gap that exceeds 5% and cannot be justified with objective, gender-neutral criteria, the gap will have to be closed."
Credit: Unsplash / Rodeo Project Management Software
In Belgium, the obligation of a pay gap report already applies from 50 employees, meaning the European directive extends this further. "It is becoming increasingly important for companies to speak openly about pay. Not only because it is imposed (with possible sanctions), but also because it can strengthen the relationship between company and employees."
"In what is still a tight labour market, this can be an extra asset for companies to strengthen team spirit as well as attract extra talent," he said.
Not only are companies communicating openly about the remuneration for certain jobs, colleagues are increasingly discussing what they earn as well: six in ten employees communicate transparently with their colleagues about their pay package, according to a survey by Acerta Consult.
The other 41% range from a modest 'I'd rather not talk about that' to a categorical 'no one has any business talking about that'. The reluctance to talk about remuneration increases with age, the survey further showed. Among those over 55, half (50%) do not talk about their pay with colleagues.
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"To be transparent about remuneration, there must of course be a wage policy in the company. If there is not, it causes great frustration among colleagues," Rutten explained. "They do not know what they have to do to earn their wages, or to get a pay rise, for instance."
For many companies, however, it is not easy: proper remuneration is fair and market-based, and also includes all benefits that an employee receives directly or indirectly from the employer.
"Employees want security and perspective when it comes to their pay. Experience and performance should also be included in the wage policy," Rutten added. "Smaller companies with fewer than 50 employees, which now get off scot-free under European directives, also work best on a wage policy. We expect that they too will have to meet certain transparency requirements in the future."
