Human resources: Mr. Wippermann, in your opinion, what is the most important point for companies to successfully implement the requirements of the EU Pay Transparency Directive and the resulting law in Germany?
Frank Wippermann: The implementation of the EU Pay Transparency Directive will probably result in an amended Pay Transparency Act in Germany. Many companies are confronted with the question of how they define work of equal value. The most important point is: Companies must develop a comprehensible methodology to evaluate jobs. A transparent remuneration system is based on this. Many people then say: “Our legal department does that.” This sentence is also fine as long as it continues. In addition to the legal perspective, there should be a look at the methodology of job evaluation as well as the changes in pay structures and their impact on the organizational culture.
What do you mean by that specifically?
Companies need to find an answer to the question: How do I even come to say that these two jobs are equivalent? Equal work is easy to judge. Identical jobs exist in large manufacturing companies, for example. The challenge is to have a methodology to define equal work.
