Fair Wages: Confusion Over Job Titles Is Becoming a Real Problem

Most salary reviews begin with the same question: Are we paying our employees fairly? HR teams consult market data, analyze the gender pay gap, and model adjustments to salary bands. The analysis is often thorough, but the conclusions almost never are—and only in rare cases is the problem with the data itself. After all, anyone who “benchmarks” their own salaries (i.e., compares them with those of competitors) or conducts an equal pay analysis without first establishing a standardized job architecture is attempting to measure something that isn’t even clearly defined yet.
And: While the definition may very well (still) exist on paper—reality has long since outgrown it. Many “decision-makers,” both large and small, have tinkered with, shifted, or tweaked compensation, responsibilities, and the overall matrix to such an extent that comparable jobs are now sometimes paid very differently. This very issue will very soon come back to haunt large companies in particular in the form of sanctions resulting from the implementation of the EU Pay Transparency Directive. A wake-up call for a return to clear and fair evaluation and structuring of all jobs and roles—with the involvement of works councils and those affected…