Can pay transparency help your company attract and retain talent?

Pay transparency is a hot topic for 2026, and fast becoming a key differentiator for employers. In a recent keynote during Crossroads, Lore Vanhaute and Kathleen Bracke from BDO’s Employment and Social Security Legal Team shared insights on the upcoming EU Pay Transparency Directive, practical steps for implementation, and why companies that embrace transparency are better positioned to attract, retain, and empower employees.

The importance of pay transparency

Despite decades of equal pay legislation, a significant gender pay gap persists. In Belgium, the gap ranges from 0.7% to almost 5%, depending on the measurement method. Across Europe, the gap averages 12%.

“Without transparency, the pay gap remains hidden,” Lore explained. “This directive is about giving employees the power to lead on fair pay, ensuring work is recognized equally, regardless of gender.”

For HR and fleet managers, this is anopportunity to build trust within teams and create a reputation as a fair employer, which directly impacts recruitment and retention.

Understanding the Directive: Key Points for Employers

Kathleen Bracke emphasised that the directive, effective June 7th, 2026 in Belgium, applies broadly:

• Scope of Pay: Includes all cash and in-kind benefits — salary, bonuses, overtime, allowances, pensions, and end-of-year premiums. Even pensions show a 25% gap between men and women.
• Information Rights: Employees and candidates can access information about pay levels and pay structures. Importantly, employers cannot request pay history from candidates.
• Reporting Requirements: Companies over 100 employees must report pay gaps, while those over 150 face more detailed reporting. Employee representatives will play a greater role in validating pay structures.

“Fair pay isn’t about paying everyone the same amount. It’s about making fair decisions based on objective criteria,” Lore noted.

Steps to Implement Pay Transparency Effectively

1. Map and Classify Pay Structures: Clearly define job categories and pay grades to avoid ambiguity.
2. Collect and Analyze Data: Gather historical salary, bonus, and benefits data to identify discrepancies.
3. Train Leadership and Managers: Ensure decision-makers understand objective pay criteria and lead by example.
4. Communicate Openly: Share pay policies with employees and provide channels for feedback.
5. Leverage Technology: Use HR systems to automate data collection, monitor pay gaps, and generate reports efficiently.

“Start with a pay review today to see if any employees are paid unfairly — you still have time to adjust policies before the directive comes into force,” Kathleen advised.

Pay Transparency and Mobility Budgets

An exciting insight for HR and fleet managers is the synergy between pay transparency and mobility budgets. Starting in 2026, mobility budgets will be mandatory for employees entitled to a company car. Both concepts empower employees to make choices about their compensation, creating a flexible, transparent, and employee-centric approach.

“Take both concepts and start implementing them together. They stand for the empowerment of employees,” Lore highlighted. By aligning mobility budgets with pay transparency, companies can avoid double reporting, simplify processes, and strengthen employee trust.

The Strategic Opportunity

Implementing pay transparency is more than legal compliance. It creates a culture of fairness, flexibility, and trust, which makes your organization more attractive to top talent. Transparent pay systems, coupled with modern mobility solutions, support a holistic compensation strategy — offering employees both clarity and choice.

“Fair pay builds trust between employees and employers, and employees who feel treated fairly are more likely to stay and contribute positively to your company,” Kathleen concluded.

Takeaways

• Begin mapping pay structures and mobility budgets now.
• Educate managers on fair pay criteria.
• Leverage technology to analyze pay gaps efficiently.
• Treat transparency as a strategic tool to attract and retain talent, not just a compliance obligation.

Companies that embrace this approach now will be ahead of the curve, delivering fairness, flexibility, and empowerment, while positioning themselves as employers of choice in a competitive market.