Employee perceptions of fair compensation are declining, even as transparency demands increase, according to recent findings. The trend poses challenges for employers navigating new regulations and employee expectations.
Currently, just over half of Belgian workers – 57% – believe they are fairly compensated, a figure that raises concerns for businesses. This comes as a new wave of legislation regarding pay transparency is set to take effect, requiring greater openness around salary structures.
A significant portion of employers, roughly 40%, are currently unfamiliar with the specifics of the upcoming regulations, suggesting a potential scramble for compliance. The shift towards greater transparency is driven by a growing expectation from employees to understand how their pay compares to their peers.
Experts emphasize the importance of clear and transparent communication from managers to address employee concerns about fair pay. Michael Page Belgium highlights the need for managers to be equipped to handle critical questions regarding compensation.
Looking ahead to 2027, larger organizations will be legally obligated to report on gender pay gaps, as mandated by the EU Directive on Pay Transparency. Companies will be required to promptly provide employees with average salary data for comparable roles upon request. PwC Netherlands suggests that proactive steps to address pay disparities now can mitigate potential unrest and ensure compliance.
The increasing focus on pay equity reflects a broader trend in the labor market, where employees are more actively scrutinizing compensation practices. This development underscores the need for companies to prioritize fair and transparent pay structures to attract and retain talent. Partena Professional offers resources for companies seeking to understand and adapt to these changes.
