More than just a buzzword
Equal pay is a central element of modern corporate culture. According to the Federal Statistical Office, there is still an average pay gap of 16% between women and men in German companies - in western German states, this difference is as high as 17%. These gender-specific pay gaps have far-reaching consequences: they not only lead to financial losses for women, but also affect commitment and employee loyalty in the affected sectors, as recent analyses by Trusaic show.
The good news: studies by Baker McKenzie show that regular salary analyses can reduce inequalities by up to 40%, while at the same time noticeably increasing employee satisfaction. Companies that use objective evaluation criteria and foster a culture of open communication have been shown to improve their reputation and reduce the risk of discrimination claims, as confirmed by the German Federal Ministry for Family Affairs, Senior Citizens, Women and Youth (BMFSFJ).
The importance of Equal Pay at a glance
Economic added value
Equal pay, i.e. equal pay for work of equal value, is not only an ethical issue, but also offers measurable economic benefits. According to the European Commission, companies with transparent pay have up to 25% higher productivity and significantly lower absenteeism. In times of skills shortages, a clear commitment to equal pay becomes a decisive competitive factor - it signals that a company takes diversity and inclusion seriously.
Current challenges
Persistent pay gaps
Despite legal requirements such as the Pay Transparency Act, there is still a significant pay gap in Germany. This gap is particularly pronounced in sectors such as IT, where women earn an average of 18% less than their male colleagues according to Trusaic, and in professional sport, where female footballers in the first division often receive only a fraction of the salary of their male colleagues, as documented by the law firm Linklaters.
A central problem is that many companies still do not carry out systematic salary analyses and instead rely on historically evolved salary structures or individual negotiations. Baker McKenzie warns that this approach exacerbates existing inequalities and can lead to a brain drain in the long term.
Solutions for fair and transparent salary structures
Regular salary analyses
Companies should carry out pay equity audits at least once a year in order to uncover and correct unjustified salary differences. Syndio recommends the use of digital tools such as those that automate this process and provide statistically sound recommendations for adjustments.
Develop objective evaluation criteria
A clearly defined set of criteria - based on qualifications, responsibility, experience and market value - ensures that salaries are set transparently and comprehensibly. The European Commission emphasizes that this approach not only reduces the pay gap, but also strengthens employees' trust in the remuneration systems.
Maintain open communication
By publishing salary bands and transparently explaining the remuneration logic on the intranet or to employees, companies create trust and reduce mistrust of established salary structures. HR specialist Beqom emphasizes that this transparency is an essential building block for long-term employee loyalty.
Encourage employee participation
Workshops and structured feedback rounds in which employees can contribute their perspectives increase the acceptance of remuneration systems and ensure that the measures implemented are perceived as fair. The BMFSFJ emphasizes that this participatory approach is particularly effective in anchoring sustainable changes in the corporate culture.
Successful practical examples
Pioneers for fair pay
Companies such as Bosch and SAP have been conducting systematic pay equity audits for several years and have reduced their pay gaps to below 5%, as documented by Syndio. The Equal Pay International Coalition (EPIC) initiative offers valuable guidelines and benchmarks that can serve as best practices for organizations of all sizes.
Every year on November 15, Equal Pay Day is celebrated to draw public attention to the existing pay gap and to increase the necessary pressure on politics and business. The European Commission emphasizes the importance of this day of action for raising social awareness and as a catalyst for concrete change.
Legal framework
Clear legal requirements
In Germany, the Remuneration Transparency Act (EntgTranspG) regulates the information rights of employees in companies with at least 200 employees. Trusaic explains that employers with more than 500 employees are obliged to submit a comprehensive report on equality and equal pay every three to five years.
The EU Pay Transparency Directive, which must be transposed into national law by 2026, lowers these thresholds to 100 employees and covers any deterioration of less than a 5% gap. Beqom predicts that this tightening of requirements will provide a significant impetus for greater pay transparency in SMEs.
Conclusion
A strategic necessity
Fair pay is not an optional extra, but a strategic necessity for forward-thinking companies. Organizations that carry out systematic salary analyses, use objective criteria and communicate their pay transparently not only achieve higher motivation and productivity, but also position themselves as attractive employers in the intense competition for qualified talent.
Initiatives such as Equal Pay Day and legislative requirements create the necessary framework, but real change can only be achieved by those organizations that actively practice equal pay and see it as an integral part of their corporate philosophy. Investing in Equal Pay pays off in many ways - through higher employee loyalty, increased commitment and an improved employer brand in an increasingly diversity-conscious labor market.
