Business Forum • 18 November, 2024 at 12:14 PM
Aon Romania, a global leader in corporate insurance brokerage, held the HR Breakfast event on Tuesday, November 12, targeting HR experts in Cluj-Napoca. The discussions focused on adapting to the new reality of the human resources market in the context of the European directive set to be implemented by June 2026 in EU member states.
The event brought together recruitment and HR experts, including Rhys Connolly, Human Capital Director, Assessment, Talent Solutions Aon UK; Raluca Kogler, Global Head of Talent at 3Pillar Global; Daniel Adumitrachioaiei, HR Director at TeraPlast; and Georgiana Militaru, HR Business Partner at Foundever.
Aiming to eliminate pay discrepancies between men and women across the European Union, the European Council adopted new pay transparency regulations. This measure comes as women earn, on average, 13% less than men. In the European context, Romania has a relatively balanced position, one of the countries with the smallest gender pay gap, standing at 4.5% in 2022, according to Eurostat data.
"According to our global studies, 53% of organizations have not conducted a pay equity analysis, 58% do not communicate salary ranges to employees, and 78% do not disclose pay scales during recruitment. Additionally, there are significant regional variations: 52% of organizations based outside Europe have no plans for pay transparency, while 66% of those based in Europe are developing or implementing such plans. It's also worth noting that accountability for pay transparency is higher among companies with over 5,000 employees, with 56% planning on adopting pay transparency measures, compared to 33% of companies with fewer than 5,000 employees. This suggests that smaller firms are less prepared or less motivated to implement pay transparency measures than larger organizations," said Rhys Connolly, Human Capital Director, Assessment, Talent Solutions Aon UK.
According to Aon's global analysis on how companies are preparing to comply with the new European directive, interviewed companies indicated that their priorities for the next 6-12 months include developing a pay transparency strategy, implementing organizational structure, and establishing performance evaluation criteria, as well as analyzing pay equity and wage disparities. Detailing roles, policies, and procedures to create a fair and transparent working environment ranks last in companies' priorities. The European Union's Pay Transparency Directive is set to go into effect in 2026, making it necessary for all European companies to formulate clear strategies.
"Regarding the Romanian business environment, the market is still not well-informed about this directive, especially among companies with local capital. The situation differs in multinational companies, which have a higher level of awareness and have begun implementing certain measures following global recommendations. This difference could also be due to uncertainty about how this law will be implemented locally," said Adrian Low-Vesa, Head of Health Division, CEE at Aon.
According to an Aon analysis based on 1,000 companies in the UK and EMEA, the most significant adjusted pay gaps are found in the manufacturing sector (6.6%), followed by FinTech (5.2%), banking (4.9%) and technology (4.2%). This gap, calculated by removing external factors such as country, industry, function, experience, or position level, suggests possible pay inequities due to gender or nationality. From 2027 onward, any pay gap over 5% will have to be reported and its cause investigated.
"The new regulations are set to have a transformative impact on pay equity in the workplace, helping companies better understand the factors that cause these imbalances. Many companies will need a multi-year change program from pay equity audits to restructuring pay frameworks to fully capitalize on the upcoming opportunity. The speed at which organizations embark on this transformation can translate into competitive advantages and predictability in attracting and retaining talent, as well as resilience in workforce reorganization and planning for future job roles," said Florian Togan, Regional Development Manager, Aon Romania.
The discussion also addressed the issue of strategic succession planning for key roles within companies, which is essential for building a strong organizational culture, maintaining high levels of employee trust and motivation, and retaining talent. A succession plan that covers all levels of the company's structure ensures business continuity under optimal conditions, especially during complex periods of organizational transformation.
Aon is a global consulting company specializing in risk management, pensions, and health. With data-driven expertise delivered by experts, Aon helps clients reduce volatility and maximize performance in a dynamic global economy. Aon Romania, part of Aon plc, is a leader in insurance brokerage and risk management consulting, providing high-quality and innovative services for industrial and commercial companies, public authorities, interest groups, NGOs, and individuals.