This session delves into the foundational analytical concepts behind the EU Pay Transparency Directive, focusing on distinctions between pay gap reporting and pay equity analysis — two related but different requirements that have strategic implications for compliance and internal decision-making. Members will hear practical insights on why these concepts matter, how regression analysis supports pay equity understanding, and common interpretation pitfalls that can expose employers to risk.
The session includes a CHRO Member Spotlight discussion to ground theory in real organizational experience.
Key topics include:
- Pay gap vs. pay equity: definitions and business impact
- When regression analysis is required and what it reveals
- Practical implications of analytical choices for compliance
- Common errors and where to focus preparatory efforts
Participants will leave with:
- A clear understanding of how pay gap and pay equity differ and intersect
- Guidance on analytical approaches for senior HR leaders
- Preparation tips for upcoming simulation and reporting sessions
The EU Pay Transparency Virtual Masterclass Series is a six-session program designed for CHROs and senior HR leaders at multinational companies preparing the EU Pay Transparency Directive. The series provides a practical, end-to-end roadmap, from understanding legal requirements and data expectations, worker categorization, performance and benefits considerations, and communication with employees.
Series Overview:
- March: Overview of the Directive, scope, timing, and enforcement
- April: Key concepts and practical implications (pay gap vs. pay equity, analytics, interpretation)
- May: Data simulation and decision-making
- June: Worker categories, the 5% rule, and joint assessments
- July: Performance, contribution, and benefits
- September: The future of global pay equity and transparency
