Salary transparency: “No company intentionally discriminates”

DELIVERY MAN: What measures can companies take to close the wage gap between men and women and can they afford to do so?

Tina Krainer: Basically, it has to be said that companies have not intentionally discriminated over the years. This has grown historically. Many of these cases are latent within the company and will only emerge when the directive is implemented into national law. Can companies afford this? It will be very difficult. If you have gender pay gaps of over five percent and you cannot justify them, you have to close them. This puts a massive strain on personnel budgets.

Richard Melbinger: If we remember – a few years ago ESG was a big topic. There were already reports to be made in the social sector. So everyone who was paying attention has already seen that they have a problem. I would assume that those who are paying attention have already taken initiatives.

How transparent are companies today generally when it comes to salary issues?

Richard Melbinger: It used to be said that the most dangerous thing that could happen was to leave your payroll at the copier. Lists are now neither printed nor copied, but it is a typical saying in Austria. New employees in payroll are usually sworn to act discreetly. But I believe that this is not a matter of secrecy, but of necessary data protection.

What does the ideal practice of salary transparency look like in companies?

Richard Melbinger: This is a difficult question that none of us can probably answer. It’s a constant work on it. But I believe that if you think about the job profiles, the skills you need to fulfill these profiles, responsibility, stress and social skills, these are essential factors. And I have to think of a grading scheme.

Tina Krainer: It is also helpful to implement salary structures that are international. They specify certain job ratings and salary levels. In Austria we are still in the fortunate position of having collective agreements where it is very precisely defined which position belongs to which employment group.