Transparency on the pay gap, the great must for companies in Spain

Transparency on the pay gap, the great must for companies in Spain

In March 2021, the deadline for companies with more than 100 workers to complete the so-called equality plan ends. At the same time, starting in April, Spanish companies will have three years to carry out a payroll register of all their workforce, including executives and managerial positions. From consultancy The Flash Co., they analyze the benefits that the application of the new law will bring for the business world.

On October 13, the new decrees were approved (RD 901/2020 on equality plans and their registration and RD 902/2020 on equal pay) in order to improve their effectiveness and clarify certain unregulated aspects in the previous regulations. In fact, one of the objectives of the reforms of the last two years has been to extend the legal obligation to have an equality plan, starting from the 2007 model, in which only companies with more than 250 employees were forced to work, to another in which, from March 2022, those over 50 will be.

With this new regulation, the specific contents, subjects and criteria to be analyzed in the diagnosis of the equality plan are considered, such as salary audits, negotiation deadlines, the calculation of workers to determine the obligation, the constitution of the negotiation commission and its balance sheet. All this as priority measures to be included in the equality plan and the maximum years of validity.

Failure to comply with the obligation to prepare and apply an equality plan is a serious offense, punishable by a fine of 626 to 6,250 euros. For this reason, eliminating the pay gap is now seen as one of the priorities of our business fabric and a stimulus for all organizations to take appropriate measures and to regulate pay equalization.

Business transparency is synonymous with innovation

According to the International Labor Organization, an equal working environment increases the level of employee satisfaction and their commitment to the company. Likewise, a more coherent wage policy improves the reputation of companies and protects them from falling stock prices, according to ILO studies.

“Pay transparency is generally ensured by innovative companies and organizations in which trust, dialogue, horizontal decision-making and autonomy are promoted. In this type of company, it is assumed that the salary received by a worker must be a fair reward for his work and if not, generate a demotivation, ”explains Eloy Herrero, president of the consulting firm The Flash co. “We have found that in companies that are likely to share this information with their employees, there is generally very little difference in the pay between those who earn the most and those who earn the least, and therefore, less pay discrimination between them. sexes.

In Iceland, companies with 25 or more employees must check their wages to obtain a government equal pay certificate. In countries like Germany, female workers can find out the average salary of their male colleagues with similar jobs and claim the same salary. In Spain, on the other hand, there is still a long way to go.

Equal pay, key to post-COVID-19 recovery

Analyzes show that women and young people are the groups hardest hit by economic crises. “Equal pay should be a goal of post-COVID-19 recovery efforts. The construction of the new normal must go through a more inclusive and fair labor market that allows us to fill these gaps as well as to face this crisis and those which will come in the future ”, adds Herrero.

In this sense, one of the pillars that support the Spain May plan, which will guide the execution of 72 billion euros of European funds until 2023, is gender equality. “Closing the pay gap is a fundamental factor of growth. And not only as a factor of justice and gender balance, but also as a boost to our country’s productivity and potential GDP, ”Herrero explains. “We are talking about making the most of the capacities of 50% of the population and the synergies that greater diversity would imply in economic decision-making.” In fact, all studies agree on the significant potential growth resulting from the full integration of women into the labor market, estimated at around 15% of GDP in the case of Spain.

Ultimately, reducing the structural barriers that hinder women’s access to the labor market with equal rights and conditions will mean an increase in the country’s capacity for long-term growth. Imposing transparency in companies implies forcing them to be so and strongly penalizing those which are not, and even more so if there is discrimination based on sex.

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