1) Assessment of the organization’s compensation system
The first phase involves a comprehensive assessment of the compensation system and how it functions within the organization.
In this phase, we analyze in particular:
• the structure of employee compensation
• the method of determining salaries
• rules for variable compensation components (bonuses, KPIs, commissions)
• the career advancement and salary growth system
• the method of determining salary differences among employees
• the existence and quality of internal compensation rules
The objective of this phase is to determine whether the compensation system allows for an objective explanation of differences among employees and whether it is in compliance with transparency requirements for compensation.
2) Data Collection and Compensation Audit
The initial assessment is followed by an analytical phase based on detailed data collection.
Remuneration data collection
The client provides data on the remuneration system, specifically:
• pay grades and job positions
• base salaries and variable components
• rules for bonuses and personal allowances
• data on starting salaries
• criteria for career advancement
Documentation analysis
We analyze in particular:
• labor law documentation
• internal wage regulations
• bonus and benefit rules
• employee recruitment documentation
Audit of pay gaps
Based on the data obtained, we will perform an analysis of:
• pay gaps among employees
• gaps between men and women
• gaps between comparable job positions
• gaps arising from starting salaries
We determine whether these gaps are justified by objective criteria or represent a potential legal risk.
3) Assessment of Remuneration Criteria
In this phase, we analyze whether the organization has established transparent and objective remuneration criteria.
We assess in particular:
• qualification criteria
• level of responsibility
• complexity of work
• working conditions
• criteria for variable remuneration components
At the same time, we assess whether the organization can demonstrate that differences in remuneration are based on gender-neutral criteria and on the value of the work performed, not on the job title.
4) Assessment of the recruitment process
New rules on pay transparency also introduce new obligations in the recruitment process.
The audit therefore includes an analysis of:
• how salaries are stated in job advertisements
• informing candidates about the starting salary or salary range
• the structure of the selection process
• an analysis of the questions asked during the selection process in relation to the list of prohibited questions under the Labor Code
• the prohibition on inquiring about candidates’ salary history
The goal is to ensure that the recruitment process is transparent and non-discriminatory.
5) Reporting and Enforcement of Equal Pay
The new rules also introduce mechanisms for monitoring equal pay.
At this stage, we assess the organization’s readiness for:
• mandatory reporting of pay gaps
• identification of gaps exceeding 5%
• joint assessment of pay with employee representatives
• shifting the burden of proof to the employer
The employer must be able to demonstrate that pay gaps are objective and non-discriminatory.
6) Audit Output
The audit output includes:
• identification of risk areas in the pay system
• assessment of compliance with pay transparency rules
• recommendations for modifying the pay system
• proposal for a transparent pay structure
• proposal for measures to minimize legal risks,
7) Implementation Phase
Based on the audit results, we help clients implement the recommended solutions, specifically:
- setting up a transparent compensation structure
- defining objective compensation criteria
- amending employment-related documentation
- setting up the recruitment process
- preparing the organization for reporting pay gaps
The goal is to create a compensation system that is:
- transparent
- objective
- defensible in the event of an audit or dispute
- in compliance with European legislation.
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