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Compliance or strategy? Finnish companies’ preparation for the EU Pay Transparency Directive
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School of Business |
Master's thesis
Electronic archive copy is available via Aalto Thesis Database.
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en
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102
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Abstract
Pay transparency has gained growing attention in organizations and public debate, and the EU Pay Transparency Directive (2023/970) further brings the issue to the forefront of company agendas. This thesis examines how large Finnish companies are preparing for the directive, focusing on pay systems, communication, and transparency efforts.
The aim of this study is to examine concrete preparatory steps companies are taking or planning to take, and how institutional factors beyond legal requirements influence their approach to the directive. This study contributes to reward research by exploring organizational responses to regulation and other external pressures through the lens of institutional theory. The unique timing of the study provides a foundation for future research once the directive is in force and potential changes have become integrated in organizational practices.
The research was conducted as a qualitative interview study (N=8), including five company representatives responsible for reward management and three external con-sultants with expertise of the topic. The data was analysed using data-driven content analysis.
The findings reveal that most organizations are approaching the directive cautiously, focusing on meeting its minimum requirements and waiting for the national-level im-plementation. However, some companies are taking a broader approach to the di-rective’s requirements, aligning more closely with the proactive approach encouraged by external consultants. This reflects a more strategic and forward-looking mindset, where the goal is not only to ensure compliance but also to support long-term organizational development.