A few months before the directive kicks off: most European companies aren’t ready

As the EU Pay Transparency Directive approaches, Belgium leads EU preparedness  while Germany lags behind. A new survey from Robert Walters, the global talent solutions partner, finds that companies across Europe are progressing very differently. National laws are expected to be finalised in the coming months, yet many organisations still feel unsure about what they must do and how the directive will affect their daily operations.

Different levels of preparation across Europe

Some countries have already started working on their pay structures, but others are clearly behind. In Germany, 82% of companies say they are not ready to apply the directive. In France, 54% of organisations believe they will not meet the deadline, and 55% have not yet started any compliance work. Belgium is in a better position, with fewer companies reporting delays, while Spain shows one of the lowest levels of preparation, with 91% of companies having no pay transparency policy in place.

Netherlands sits somewhere in between: 53% of Dutch companies say they don’t feel ready at all for the application of the directive, highlighting the scale of work still required, even in markets often perceived as more mature on HR topics. 

These differences reflect Europe’s very diverse regulatory environments and internal HR practices. “We see a fragmented Europe where companies are not starting from the same point, both in terms of regulatory exposure and internal readiness”, explains Jose Bokhorst, CEO Northern-Europe at Robert Walters. “In markets like Belgium, where salary transparency is already partially embedded in legislation, organisations tend to be more advanced and structured in their approach. By contrast, in countries such as Germany, many companies are still navigating uncertainty – either due to less regulatory pressure so far or a lack of internal frameworks – leading to more hesitation and slower preparation for the changes ahead.”

A directive that remains unclear for many companies

Beyond the question of readiness, many leaders still struggle to fully understand what the directive requires. In France, only 36% of companies view it positively, and many admit they do not clearly see its impact. In Germany, 55% of organisations are either unsure or not confident in their understanding. In Spain, 52% say they do not know how the directive applies to their internal processes.

This lack of clarity is also visible in the Netherlands, where 40% of companies say they don’t know what to think about the directive, reflecting widespread uncertainty rather than clear opposition. 

Companies are uncertain about important questions, such as how to define “work of equal value,” how to set objective pay criteria, or how to share salary information in a safe and structured way. “The directive brings important progress, but it remains difficult to interpret for many organisations, warns Jose Bokhorst. Leaders need clarity, simple explanations and proper support so they can anticipate the change instead of reacting too late.”

A strong impact on talent, competitiveness and internal trust

The directive will influence much more than regulatory compliance. It will change how companies recruit, how employees negotiate salaries, and how talent moves within organisations. Today, many candidates want to know the salary of a job before applying, which increases pressure on employers to be transparent. Greater visibility on pay may also help make negotiations fairer, especially for groups who traditionally negotiate less, such as women.

“Pay transparency is becoming a key factor in attracting talent. Companies that prepare early will benefit from more trust, better management and stronger competitiveness. Those that wait too long may face difficulties in the ongoing competition for talent.” 

Supporting organisations through this transition

To help companies adapt, Robert Walters is mobilising its Talent Advisory teams and industry experts. They provide support through salary audits, clear and fair pay frameworks, market analysis, manager awareness programmes and HR training sessions. The aim is to help organisations combine external attractiveness, internal fairness and regulatory compliance, while guiding them through the cultural transformation that the directive will bring.