Salary Transparency as a Competitive Advantage

Many organizations and companies are not yet prepared for the new requirements of the EU Directive on salary transparency, either technically or organizationally. Workday, a provider of an AI-based platform for human resources and financial management, has now teamed up with technology partner Kainos to introduce a solution designed to help companies implement these requirements: the Pay Transparency Analyzer powered by Kainos.

From compliance to cultural change

The Pay Transparency Analyzer goes beyond mere reporting requirements. Using AI, the solution analyzes extensive data on compensation, performance, and demographics, systematically uncovering pay gaps. It also identifies possible causes—such as differences in professional experience, position, or location—and provides concrete, budgeted recommendations for action to close these gaps.

"The landscape surrounding salary transparency is evolving rapidly, and companies need solutions that not only meet regulatory requirements but also close existing gaps in fair pay,“ says Angelique De Vries-Schipperijn, President EMEA at Workday. Workday is positioning the solution as a strategic tool: moving away from reactive compliance with legal obligations toward a proactive culture of fairness and transparency. The aim is for managers to not only pass audits with confidence, but also to strengthen trust and motivation within their teams.

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"Companies need solutions that not only meet regulatory requirements, but also close existing gaps in fair pay."

Angelique De Vries-Schipperijn,
President EMEA,
Workday

Data, analyses, recommendations

The Pay Transparency Analyzer combines Workday's own compensation data with external sources and presents it in a secure environment. Here is an overview of the key features:

Regulatory compliance: Automated reports and dashboards, tailored to country-specific requirements, support HR and finance teams with audits and disclosure requirements.

AI-supported analysis: The solution not only shows where salary gaps exist, but also why. This enables companies to develop targeted measures to close inequalities.

Transparent communication: Employees gain insight into average salaries and compensation structures within their group—an important step toward promoting trust and fairness.

According to Malachy Smith, Global Practice Leader at Kainos, the solution is an expression of a "strong partnership" that helps companies "confidently manage the growing demands for salary transparency and create fairer, sustainable workplaces."

Strategic opportunity

The introduction of such tools is fundamentally changing the understanding of compensation management. What was long considered an internal HR issue is now becoming part of corporate strategy and employer branding. Transparent and fair compensation practices can become a decisive factor in the competition for talent—especially in times when skilled workers increasingly value trust, openness, and appreciation over purely monetary incentives.

The new solution is currently being used by selected early adopters and is expected to be generally available in the second half of fiscal year 2026. The Pay Transparency Analyzer exemplifies how regulatory requirements and technological innovation can be combined. AI-based analyses not only enable compliance with regulations, but also promote a sustainable culture of equal treatment and fairness. Companies that act early can use the upcoming EU directive not only as an obligation, but also as an opportunity to strengthen transparency, trust, and long-term attractiveness as employers.

EU Directive on Pay Transparency

Goal: Closing the gender pay gap through greater transparency and fair remuneration structures, promoting transparency, fairness, and trust in remuneration processes.
Entry into force:  June 2023—national implementation by June 2026.
Obligations for employers:  Disclosure of salary ranges in job advertisements. No questions about previous salary permitted. Employees' right to information about average salaries for equivalent jobs. Reporting obligation on gender-specific pay differences for companies with 100 or more employees.
Consequences of inequality:  If there is a wage difference of more than 5 percent that cannot be justified, a joint salary evaluation is required.