Polish companies lead the way in actions to eliminate the wage gap in Europe

Three out of ten Polish employers see equality and transparency of salaries as a challenge for their company. However, in Europe, Polish companies lead the way in efforts to eliminate the wage gap.

Over one third (36%) of Polish employers view transparency and equal pay within their organization as the greatest challenge in their wage policy field. Meanwhile, more than 40 percent (compared to the European average of 29 percent) of Polish employers are actively working to improve pay equality. On the other hand, only 18 percent of them currently plan to fight wage inequalities. This is a large proportion, but the European average of companies indifferent to the issue of equal pay and transparency is almost 40 percent. These results are from an international survey conducted by SD Worx, a leading European HR services provider, with over 5,000 companies and 18,000 employees in 18 countries.

More than 25 percent of Polish (and 21 percent of European) employers see strategic wage policy and employees’ financial wellbeing as one of the most important HR challenges in the near future. This is a significant decrease compared to the situation three years ago – at that time as many as 38 percent of Polish companies pointed to this problem. An impressive result: at that time the European average was 24 percent.

3/10 Polish and European employers fall short on legal requirements for pay transparency

Pay transparency is the biggest challenge for Polish employers (37 percent). This is barely more than the European average. Higher results, hence bigger problems, were shown by the surveyed companies from Spain (45 percent), Ireland (43 percent), the UK (42 percent) and Austria (38 percent). Currently, 41 percent of the total number of surveyed employers have not yet planned any specific improvements in this area. More than one quarter (28 percent) of European employers are actively enhancing pay transparency and one third (32 percent) plan to do so.

Despite this challenge, 48.5 percent of Polish (and 42 percent of European) employees believe that their organization is striving for complete pay transparency within the company. Employees from the UK (58 percent), Spain (57 percent), and Romania (53 percent) have the greatest faith in their employers’ intentions and commitment. However, three out of ten Polish and European employers (32.6 percent and 29 percent) are not fully aware of legal regulations regarding pay transparency, such as the EU directive on pay transparency of 10 May 2023, and therefore do not comply with its requirements.

Over half of Polish and European companies see an increase in total wage costs

Over the past year, wage costs have increased in more than 56 percent of Polish companies. This is a bit more than in Europe overall, but the highest results are reported by organizations operating in Austria (61 percent), Finland and Sweden (60 percent) and Germany (59 percent).

At the same time, one third of employers see the challenge associated with promoting the financial wellbeing of their employees and reducing financial stress. Polish employees point out regular pay raises (49 percent), bonuses, awards, and extra benefits, such as health insurance, pension programs or paid daycare (31 percent), as the most common initiatives in their companies aimed at solving this problem.

“With regards to pay and employee relations, communication plays a key role. It has an impact on both the wellbeing of the employees and the employer’s rating. That’s why it is important to openly and clearly inform employees about our efforts for transparency and pay equality – both those required by law and those initiated by us. Our studies show that half of European organizations are already working on this issue, with the UK, Romania and Poland leading. In today’s competitive market, matching the salary to what employees consider important is crucial. Not only does it help to attract talents, but it also helps to retain them. Six out of ten employees consider their salary the most important criteria when choosing an organization. Therefore, it is important that employees are informed about the company’s pay policy, the actions it is taking and all components of their pay” – states Paulina Zasempa, People Country Lead at SD Worx Poland.

About the study

SD Worx, a leading European HR services provider, assists organizations in personnel and payroll matters. SD Worx regularly conducts surveys to learn what really matters to employers and employees. The analysis of the latest “Navigator Series” survey gives organizations a compass to navigate through challenges related to HR and payroll issues. The study was conducted in February 2024 in 18 European countries: Austria, Belgium, Croatia, Denmark, Finland, France, Germany, Italy, Ireland, the Netherlands, Norway, Poland, Romania, Serbia, Slovenia, Spain, Sweden, and the UK. In total, 5,118 companies and 18,000 employees were surveyed. The results are weighted and provide a reliable representation of the labor market in each country.