Name: EU Pay Transparency: Garantizando la Igualdad y la Transparencia
Uploaded: 2025-05-08T15:16:10.399Z
Duration: 1 h 3 min 24 s
Description: EU Pay Transparency: Garantizando la Igualdad y la Transparencia

Transcript for "EU Pay Transparency: Garantizando la Igualdad y la Transparencia": Hello, and welcome everyone to this, rocking workday webinar series. It's now 4PM, time in Spain. I'm sitting here in in The UK, so it's slightly different for me. But 4PM here, we're gonna leave it just one, minute or two just to make sure people have time to join, then we'll be, kicking off. It's worth saying there's gonna be a fair amount of content covered today. So, please do sit back, get yourself a drink. Make sure you're relaxed and ready to listen. Put a lot lot lot to cover today. We'll have a team of people answering questions for you in in the background. So, again, if you hear anything you're not sure about, please do put your answer your question, sorry, in, the the q and a. You'll find that on the right hand side of your screen. We'll cover that again in a moment. I think we are probably just about ready to start. So welcome, everyone, to this rocking Workday webinar series. This is a special edition based on the EU pay transparency directive. Now, hosts for today, first of all, there's myself. My name is Neil Fromow. I'm a solution consultant here at Workday. I'm joined by Valeria, who works, in the value management team at Workday, and also by Malina, who is also a a solution consultant. And, actually, Malina will be the one sitting behind the scenes answering your questions as you put them into the q and a. Now I need to point out that you can ask ask those questions either in Spanish or in English, either way. And at the very end, what we will have is a q and a session, a live q and a session where Malina will be taking some of the questions that have been asked in the the q and a section, and they'll be putting them to me to see if I can answer them. I'm sure she's gonna pick out some particularly tricky topics for me, but I'll do my best to answer them for you. Now let's take a look at the agenda and what we're going to cover today. Now first of all, we're going to have a bit of education. We're going to go back to school, and we're gonna learn all about what is the new EU pay transparency directive. In fact, as we will learn, it's actually not that new anymore, but we will learn all about that. And for those of you on the call that know a lot about it already, then this will be a level set to make sure that we're all at the same stage with this. Secondly, we're going to dive into how Workday technology can help solve some of the challenges that the EU pay transparency directive presents to to our customers. Thirdly, we will look at your options for delivering this technology, how we can make it come to life in your organizations. And as a heads up, there are multiple options, there for for us. And, finally, we will have actually, following a q and a session there'll be a q and a session in between those beats piece pieces there. But, finally, we will look at what to do next and look at EUPTD readiness. But before we do any of that, what we're going to do is we're going to, I'm gonna stop my sharing, and we're gonna do a poll. We in fact, we're gonna do a couple of polls. There's gonna be a couple of questions, and I want you to use the response buttons to see where we all are at in terms of our knowledge of the EU pay transparency directive. So first of all, I'm going to do this one. And the first poll is, are you aware of the detailed provisions of the European pay transparency directive. So you can now choose to vote, with that using the buttons on the screen. And well, we've got three votes so far. There we go. So we got a a solid yes. In fact if that remains that, I might just pack up and you can present for me. Very good. Oh, there we go. So it's changing now. So we've got 27% on the yeses and 72 on the no. So that's interesting. We we ran this webinar across all of the EMEA customers, a a few weeks ago, very similar results, actually. So that's a great one. So we're gonna close that poll. Now we're gonna do a second poll. The next one is, do you have a project plan in place for EU paid transparency? And I spend pretty much most of my, working time now talking to customers all across EMEA about how they are looking to, first of all, deliver the projects. Let's start looking at their job architectures and and understanding how these provisions that will become reality very soon, how they're going to start tackling them. And it's looking there like we've got, about 67% have, don't have a project plan in place while 3030% do. So seventy thirty split. So that is interesting because it does reflect the broader picture across the European Union based on the discussions that I have with our customers. So that's good. So it shows me, first of all, that this education session that we'll do now will be useful to to a lot of you. And even those of you that do know the provisions well, it will be a good refresher for you. Maybe we can throw in some things there that maybe you haven't come up come across yet. So, what we'll do next then, having done that part, we'll now go back to our, our slides, and we will move on with the rest of the agenda. So first of all then, let's just think about what is the new pay new pay transparency directive. But before we do that, we'll need to just put a couple of, legalities up on the screen. So the first one is our product statement. Now in this webinar, I will be talking about future functionality. So please do base purchasing decisions on current functionality only. That's the first one. I'm sure if you're a Workday customer, you will probably have seen a statement like that before. The second one, which I don't normally have to do, but now I'm talking about, the EU pay transparency directive, I have to put this legal statement up as well and tell you that the information that we are going to provide here is for informational purposes only. I am not a lawyer. I actually did a law degree, but I am not a lawyer, in in in sense that I'm not employed by Workday as a lawyer. So you would need to, always consult with your own legal counsel regarding any compliance related matters. So you can't take the advice that we give here as as your final piece as we'll see later in, the session when we look at defining job architectures, for example. All of that should be agreed with legal counsel and workers' representatives. So just bear in mind this although we're talking about a technology solution here, this is very much a legal matter, and you must consult your legal counsel before taking any actions and have them approve job architectures and analytics that you create. So with that out of the way, let's look at, what this new EU pay transparency directive actually is. So the directive was passed back in 2023, and the reason it was created was to deploy a legal framework across the entire European Union that would finally eradicate the practice of discriminatory pay between men and women that are doing the same work or work of equal value. Now this is not a new problem. In fact, it has always been a feature of our society. And to give you one illustration of of what this means, I'm gonna take you back in time. We're gonna go back to 1968 to the town of Dagenham in The UK. That's a town in Essex in The UK. It's quite near me, so it it rings a bell for me. So, hopefully, it'll be interesting. Now in Dagenham, there was a Ford Motors factory. And at the time, back in 1968, it was responsible for producing what are now arguably classic cars, like the Cortina and the Fiesta, which some of you may know about. But this factory is actually famous for a lot more than that. And in particular, it's famous for a strongly principled workforce that unknowingly kicked off an entire social revolution. Now in the factory, there were two sets of workers. Firstly, there were the men on the production line, and they welded together the steel panels on the car bodies. And secondly, there were the women in the sewing machine room that stitched together the fabric for the car seats. Now the factory management hadn't fully realized, that many of these men and women that were doing these tasks were either married or in relationships, and therefore, they knew each other's wages. And let's just say when the women were coming to a realization that collectively, they were paid significantly less than the men, then let's just say they weren't very happy about it. Now they believed that they were entitled to equal pay because their job was of equal value, and they argued that their job of stitching together the fabric for this car seats was equally as valuable to Ford at the men's job of stitching together the steel for the car bodies. Now as you can imagine, the the management teams did not agree with this. And so what did the women do? Well, they went on strike. In fact, they went on strike many, many times. And over a prolonged period, eventually, they won. The management agreed. It actually went to, the high court in England, and they agreed, and won it that their case that their work was indeed of equal value to the men's. Now this ruling led to something that, in The UK called the Equal Pay Act. And this was just one example of legislation across Europe that aims to outlaw this discriminatory pay between men and women for those doing work of equal value. And it's certainly not the only legislation. In fact, in 1979, all forms of discrimination against women were prohibited by the UN Convention. And across, the years, multiple other pieces of legislation have come into being. For example, the Maastricht Treaty. For example, the principle of equal pay for equal work being applied to eliminate pay description in 2006 by the I was doing some research in Spain. We've got the royal decrees 09/2001 and 09/2002 that, basically, outlaws gaps of more than 25% between men and women. Now interestingly, in 2020, there were several studies done across the European Union, and what they found was that there was still a 13% average gender pay gap in existence, which was seen quite rightly as not acceptable. Now I have, I have four daughters. As when I think of them being paid, you know, for every £100, 100 or €100 that Amanda Amanda earns that they would be paid 87, it makes me fairly cross. And quite rightly, this type of thing needs to be, sort of solved. The EU absolutely wanted that to be the case. So they introduced the EU pay transparency directive, and this aims to enforce that principle of equal pay for work of equal value between men and women using enhanced pay transparency and enforcement mechanisms. Now for pay transparency, you can read reporting, statutory reporting, and rights to information. And for enforcement mechanisms, you can read fines, quite large fines as it goes. We'll build into exactly what that means a bit later, but fines essentially and some other mechanisms that we, again, we will look at a bit later on. So, with that in mind, let's have a look at the transparency measure categories that are within the directive. Now it's worth saying at this point that the directive is is quite long. I've got a copy of it. I'm gonna do that and see it. Put a copy of it here. It's quite long. It's very detailed. And in fact in fact, in in terms of a directive, as opposed to a regulation, in the EU, it is it is very, very detailed. So we expect local legislation to follow it quite closely, which is which is sort of what we're seeing so far. But we can talk about that again, later in the webinar. Now these categories, basically fall into three areas. So first one is reporting provisions, and this is the piece that introduces the consistent gender pay gap reporting across the entire of the EU. So the first one is reporting. The second one is a right to information, and this is where every, EU citizen will be enabled to understand where they sit in relation to the in in resort with their pay in relation to the pay of others in the same worker category that they are in. And that's that's the one that a lot of customers I talk to are getting very, very nervous about. The final one is a set of employer prohibitions, and this is all about, employers being forbidden from asking applicants, about salary history in previous jobs, so that will not be allowed anymore. It will be, now allowed in fact, employers won't be able to prohibit workers from discussing or disclosing their own salary to others as well. So lots of things that, have, I I guess, been seen as impeding the ability to have transparent pay is basically being outlawed. And we will see all the way through the directive that the spirit of the directive is absolutely about transparency. So often I get asked, oh, this provision, do do we really need to comply with that? And, obviously, I'm not a lawyer. I can't say. But what I do know is that the whole point and the spirit of this directive is about transparency, and it's about solving a social problem that's been in existence pretty much as far as anyone can remember, which means that, all of the provisions that are in the directive are designed to, I guess, eradicate that problem. So when we think, do we have to? Do we have to? The chances are you you will have to. So that's that's the first part. Those are three categories, reporting, right to information, and employer prohibitions. It says down at the bottom there, it's not an exhaustive list of all transparency measures in the directive. We can't hope to cover absolutely everything in in the time we've got, but they are broadly the categories. Now we know what the categories are now. When do we need to comply with this? So EU member states are required to implement the directive in local legislation by the 06/07/2026, And the right to information and prohibition provisions will be effective as of that date. So, actually, in just just over a year's time, when I say it's just a year and a couple of weeks away, this will be live legislation. So all of those provisions I've mentioned will be, around. Now there are a set of reporting obligations as well that we'll discuss, but they will come into effect on a phased basis starting on the 06/07/2027. So there's an extra year, but you will see if you've read the directive and those people that aren't at the polls saying they knew the provisions that the reporting period that we need to report on on the 06/07/2027 is before the period first of Jan twenty six to 12/31/1926, which means we need to start collecting data as of January, which is just over six months away. And, again, in customer discussions, that is something that is causing quite a lot of concern. Now who does it apply to? Well, I guess it's slightly different depending on what provisions we're talking about. Reporting provisions are going to apply to all EU companies with over a 150 employees in 2027 and over a 100 employees in 2031. Non e reg EU registered companies are still affected by this. So any any non EU registered company with total employees above the reporting threshold in EU member states will be affected by the provisions of the transparency directive. Now it's worth saying a quick update on legislation. Sweden, has published a draft, of this legislation. And in their legislation, they are what we call gold plating it. And rather than, going with the 150 employees and 100 in 2031, they are going to start with companies bigger than 10 employees, which is an interesting one. But, so that is pretty much blanket coverage across, all companies in Sweden. Now, the other, right to information and prohibition category will apply from the start date of the legislation, which, remember, is is, next year, June 2026, and that will apply to employees and to job applicants. And it will also apply to all EU companies, whether they are public or private. So it's quite broad coverage, and it it certainly applies to the vast majority of the customers we have here at Workday. Now there are four key areas of interest where we delve into the pay transparency directive. And the first one is the gender pay gap. Now this is the provision that introduces consistent gender pay gap reporting across all EU member states for the first time, and it is in fact article nine in the directive if you want to follow along with your directives. So gender pay gap. Now what do we mean by pay? Now this is, I think, one of the first elements that are that is causing a lot of discussion and, honestly, fear in some of our customers. Now when we look at what the gender pay gap, reporting requires, it it's basically the difference in average and median wages between men and women doing equal work. And it requires pay components like salary, bonus, incentives. And, interestingly, most legislation across the EU now requires pay transparency or pay equity reporting to be done on salary components only. You'll see there that, actually, the, I guess, the pool of salary that we're defining is growing. And in fact, the principle of equal pay, according to the directive, and I will read this out because this is this is straight from the directive. The principle of equal pay should be observed with regards to wages, salaries, or any other consideration, whether in cash or in kind, which workers receive directly or indirectly in respect of their employment from their employer. So that's quite wide. It basically says any other consideration. And it goes on to say that variable compensation may include but is not limited to the following. So bonuses, overtime, travel facilities, housing allowance, food allowance, training compensation, dismissal payments, and so on and so on. So there's a lot in there, and it is by no means a definitive list. It essentially requires you to document and report on any pay elements that you provide for your employees. We'll see the consequences of of not doing that or potential consequences of not doing that when when we get to the piece about the, I guess, the the measures for compliance. But from the outset, that is a significant amount of work. If you've not currently got, what I would term a total cost of workforce capability, in your organizations, you are going to need to get one fairly quickly. Because if you don't, you won't be able to comply with this, directive and the legislation that will will come as a result of it. Now this pay needs to be expressed in two ways. Firstly, as gross annual pay, and secondly, as hourly pay. And in fact, I think the hourly pay is actually it seems to have more of, I guess, more of a emphasis on it than than the annual, but annual is also required. So that's the first part. So we we now know what the pay is, but it also says there that, that we need to look at the gender pay gap and compare those men and women doing equal work. So how do we identify that? And it says in article four that member states shall take the necessary measures to ensure that employers have pay structures that ensure equal pay for equal work or work of equal value. Right. Now this basically can be translated into a solid job architecture that allows you to identify this work could be called value or the same work. So the categories that the directive gives to help us identify these categories, are set up as, a series of core criteria, and they are skills, efforts, working conditions, and responsibilities. Now if we think about how we would do that inside Workday or inside any system for that matter, we will need to have some way of mapping those four core criteria to the job architecture. And remember here, we're not just saying, you know, a project manager is doing the same work as a project manager. We can actually or we will have to compare across job profiles and across positions because we need to be able to say that one type of work remember the people in the factory, you know, they they were fabric sewers. They had work at the sewing machines. The men were working on the production line in the steel part, totally different jobs, but the same value. So you can't just say, well, we're just gonna look at the job profiles. We need to go much further. And when we do that, we will need to actually start revisiting our job architecture, and this is what a lot of the customers I'm working with are currently doing, very hastily. And they are looking at particular elements of the workday capability to look at things like job profiles, job families, and job family groups, competencies, job levels and grades. Great. Now the the job levels and grades are the primary tool for identifying equal work or help to identify across those pieces because they are the ones that really span, the the different job profiles to allow us to bring those two things together and identify this work of equal value. And you'll see that I've got a a few examples on the screen where, when we're looking at those criteria, the skills, the effort, the responsibility, we will need to be able to map those to what they mean and then potential places that we could start looking inside our job architecture to help us group them together. So for skills, for example, we'll be looking at education, training, experience. Examples of that might be some specific degrees, some certifications, etcetera. So in the job profile, we could look at, the preferred qualifications. In the skills cloud or the skills of the worker. We could look at the skill proficiency levels and so on. And in the competency, we can look at the technical expertise, that that particular person requires in that job profile. So in other words, we can map the skill requirement through to elements in the job architecture. Now what I would say is that just like I said in my legal statement at the beginning, when you do your job architecture review to identify this, it's absolutely critical that you do it in line with workers' representatives and legal counsel because this is the foundational piece that will enable you to deliver on the transparency directed reporting requirements. If this is wrong or it's not identifying work correctly, then when it comes to the point where an employee or employees, start requesting reviews of their pay and potentially taking action against employers, then this is the piece you will need to prove is right along with collection of the pay data. So collection of pay data and, of course, the job architectural review are absolutely critical for identifying this work of equal value. Now that's the first part. The second part is the joint pay assessment that is introduced by the directive. Now what does that mean? So we're reporting, and that reporting, it means the gender pay gap reporting, reveals an unexplainable gap of at least 5% in an employee category, then employers will have to carry out a pay assessment in cooperation with workers' representatives. Now two things there. First of all, it's a 5% gap. And I note that in the current Spanish legislation, the gap is 25%. So that's a significant drop in the gap that you will need to be able to account for. So that's one thing you might want to think about. The other thing is we talk about the word ex unexplainable there. So what do we mean by unexplainable? Well, what that means really is that if we were to take into account all of the things like the skills, the effort, the working conditions, and responsibility, and we've got a gap, but then we go further and start looking at other things, such as the tenure, the locations, the performance of the individual, and so on. In other words, extendable criteria that are specifically called out in the directive. They're not defined, but you are able to use these non defined extendable criteria to explain the gender pay gaps. In other words, you may have someone that, has been imposed for a long time as, extremely good performance record and so on and so forth. So therefore, you can explain why you have a greater than five percent gap between a man and a woman in the same category. And this, is done in in multiple ways. Traditionally, in pay equity analysis, this has been done using regression analysis and log linear regression analysis. So, we'll come to some of that later. But, for now, just think that when we have this gap that appears, we need to be able to explain it to ensure that we protect ourselves as an employer from any kind of action from our employers. So that's the explained pay gap. Now let's move on slightly. So the third area of interest is the employee and applicant rights to information. The employees can request their individual pay level and the average pay levels broken down by six for the category of employees performing the same work or work of equal value. And workers must be notified of this right or receive the information annually. And this brings me back to something that, a few weeks ago, I had a, like, a round table session with a whole set of customers in in Zurich. And one of the people in the in in the, room asked me a question. After I spoke about the joint pay assessment, I talked about this 5% gap and the right for, you know, this pay assessment that should happen. The next question came, well, how how would the employee know if how would the employee know if there's a bigger than 5% gap? How we're not gonna tell them. How are we gonna know? And the answer is, well, they will definitely know because they are now being given the right to know. In fact, not only the right to know, but you I think we'll have the right to receive this. I think it's within I can't remember the date. I think it's been several weeks, I think, you have period to be able to report on this. It may be slightly longer. But you will have to provide this information of where the worker sits in relation to other, you know, in relation to the average male and average female pay in that category. So they are going to know. So that and that right comes into being, as you know, in the middle of next year. So, again, not long to start creating provision for that. Outside of the employee side, for job applicants, you will have to provide pay range details on any kind of job advert. Oh, actually, you don't have to provide on the job advert. It's actually, if you read the directive, it says before, the conclusion of the contract. But most customers that I'm talking to are opting to share these on job applications whenever possible in order that they can have the compliance tick in the box. Now the other thing is all about the, accessibility, of employer information used to determine pay, pay levels, and pay progression. Now this is all about being transparent and providing visibility of information to employees about how they will progress in terms of their pay. Now a lot of companies I talk to already do this. And with all of this legislation, there may be pieces that your organization is already doing. However, there may be pieces you are not. And this is one piece that you just need to make sure that you've got that box. The pay levels, pay progression will be required to be made public, for your employees. Now the final piece that's, of interest. What happens if we don't comply? Now in order to comply, first of all, you must publish the pay range data and your gender pay gap reporting publicly to national centralized monitoring bodies that will be set up as part of the directive. Now the fines themselves, if you don't comply, will be based on annual turnover, and total payroll or a combination of. Now if you are an organization that is supplying services to government organizations, then you could have the right to supply those services taken away from you, until such time you comply with the directive. So there's some pretty onerous fines there, and we're gonna talk in a minute. Valeria is gonna come on and look at some of those pieces in just a moment. But before we do, let's, look at the interested personas. So who do I typically talk to when I'm discussing these pieces? Well, first of all, it's anyone related to a reward of comp and benefits. Typically, heads of reward, heads of equity, and there may be some of you out there on the on the webinar today. Absolutely. This is your area. Now the other people that are involved will certainly be the legal counsel and the compliance officer. And if you are doing a project on this and you have not involved your legal counsel and your compliance officers, then please do so immediately, because they will need to sign off and approve any of the job architecture changes that you do. And, finally, the other people that are typically involved are data people, A bit like myself, I I've had about thirty years experience now in data management, analytics, reporting, and so on. And, I I would be the typical person to get involved in something like this because I would need to design, job, I guess, data structures in order to do the reporting. So, again, if they are not involved yet, please involve them because they will almost certainly need to. You'll also need to involve your workday administrators, of those people that are responsible for the job architecture because because, again, they will be heavily involved in this. Now what then do we need to think about from the c level? What what are the c suite thinking about this then? In order to discuss this and to look at some of the opportunities and the risks that we may run for for noncompliance, I'm gonna introduce Valeria. So you so Valeria, welcome to the stage. Thank you so much, Neil, and good afternoon, everywhere. So nice to to have you all here and to talk about this topic that is definitely gonna change the way that we approach next year. So as Neil was saying, there's many different details about this legislation that are gonna change the way that we approach our people and their data for the next year. And depending on which hat are you wearing on your company or which area you pertain to, you're gonna have different interests regarding EUPCD. We only need to take care of our area, but at the same time, work in synergy towards the same goal. So let's start with the CFO. What does this mean for you and for your financial matters? You need to factor the cost of PTD compliance and to have the ability to dynamically plan and budget for potential pay adjustments. Because as we said, this is not just about reporting the gap, but also what action plan are we gonna have in place. The directive also increases the risk of noncompliance of litigation. So this is something that is definitely gonna be, involved in terms of budgeting for the next year or what type of provisions are you having from, from now on as implementing EOPT. In terms of the CHRO, this is gonna affect the way that you not only retain but acquire talent because the information is not only gonna be disclosed to employees, it's also gonna be disclosed to candidates. They're gonna have new factors to take a consideration while being recruited. So HR is gonna need to review and revise all HR policies and procedures that are related to compensation, to recruitment, to performance management, and make sure that everyone has access to the right information. In terms of CIO, this is going to require heavily revision on the way that you collect, stored, and analyze vast amount of sensitive pay data. As Neil has been mentioning, data analytics is gonna be key during this process. Your capacity to report, to meet their requirements, and also to continually change as, the requirements of all in your country is gonna be crucial for you to fulfill, the legal requirements, the way that you integrate data, making sure that it has high quality, and that it is agile and adaptable as the process changes. And finally, in terms of legal, you're gonna have significant legal exposure, and, of course, this brings different risk. You're gonna require strong CLO governance for compliance, equal pay claims are gonna be complex, and this is going to require extensive disclosure and lengthy hearings. Number of file complaints can totally increase. You're gonna need to train your team accordingly and have people specialize in EOPTD in order to make sure that you address everything promptly. So, again, something that needs to have a very proactive strategy in place. This is going to totally, change the scope as we're saying of what has been happening in Spain so far. If we embrace it properly, it can present very strong opportunities for your business. But there are also important risk at the table that we need to keep in mind in order to handle the adoption of e to p t d in a successful manner. So what are some of the opportunities for it? As you see, we categorize them all. Some of them are softer or harder than others, and some of them have higher severity. But, again, all of them need to be addressed. Regarding opportunities, we need to prevent and ease social tensions by having a proactive and strong relationship with key stakeholders such as workers representatives. Why? Because we're gonna have a constant collaboration with them, and we need to start with the right foot. So make sure that you start the conversation, that you address our concerns, that they see your commitment to fairness, that that you use they see that you value employees, and you are not just wanting to meet a legal requirement, and that this is not gonna be a tense back and forth. This is also an opportunity for you to enhance your employer branding. Why? Because everyone is gonna need to take a stance regarding pay equity. This is no longer gonna be an option. This is no longer gonna be a coffee chat. This is going to be a serious legal matter. So you need to strengthen your corporate positioning because if you don't take a clear stance, this is definitely going to change the way that you're perceived by potential candidates. It can increase your voluntary turnover because people are maybe gonna wanna leave the company, and it can significantly change as well the way that your employees engage in the workplace. And finally, transparency. This is or that we are gonna be repeating a lot, but the communication channels need to be completely transparent, but at the same way at the same time, transmit safety and trust to employees. Why? Because we're all very sensitive with what happens with our data. So we need to ensure them that the right privacy rules are gonna be in place in order to promote a healthy culture of transparency and trust. Now let's talk about the risks. It's no secret that this is going to put reputations in danger if not addressed correctly and that it could cause, very important employee relations strains. Why? Because, this is a very sensitive matter and it can even impact the way that investors or the or the end customers see you. It can create social tension. It can even create, or affect the way that your organization stays competitive in the industry. So we need to be very, very careful in the way that we position ourselves, as we said, to make sure that this doesn't have a long term negative effect on you. There's gonna be increased, legal exposure and financial cost. The scrutiny is definitely gonna be heightened. There's gonna be a rise in litigation cases as we said, and a big opportunity for higher settlement cost. Just to give you a very high level number that we have been estimated that based on EU averages, a company of a thousand employees could even face up to €350,000 in in settlement cost if not addressed properly. So, definitely, again, something that needs to be approached proactively. And finally, operational complexity is going to increase because as we have been saying, there are so many details, so many, scrutiny in not only the pay gap, but also the way that your job architecture goes, that your job structure goes, that your organizational chart, is, in place. So the operational complexity is gonna have to is gonna come by meeting all the legal requirements with the right technology. And if you try to do this outside a tool, this is gonna be a very inefficient process for you. It's gonna turn very manual. The workload for HR, IT, finance, and the legal teams is not gonna be manageable at all. And you're even gonna have to expand your team properly in order to meet EUPTG requirements. Overall, as you can see, this is going to be quite a journey to embrace. We know that people projects sometimes are hard to be prioritized because industries are so fast paced. Everything changes in in a second. We we need to stay competitive and profitable, and there are so many factors in the equation that sometimes you cannot put people in the top of the list, unfortunately, or a project like this. However, the EUPTD has a pressing need. It makes this matter urgent. This is not something that you cannot keep postponing. This is not a luxury that you can have anymore. So we we strongly recommend you to to start putting a strategy in place in order to turn, as we said, all of this into an opportunity. Okay. Brilliant. Thank you very much for that, Felipe, and certainly food for thought there, when we're thinking about those opportunities and risks. So, we spent a lot of time there talking about the the the directive. Let's move now onto the Workday technology solutions for this. Now there are three ways in which Workday technology can support the EU pay transparency directive. And the the first way is all about the reporting and the distribution of the metrics that we will need to do, so the gender pay gap and the right to information. The second way Workday can help is with data consolidation, and that is by bringing data together, all the pay data, the pay groupings, and enabling enabling you then to to distribute those reports. And the third way that Workday can help in terms of technology is through process management. Now let's sort of dig into each one of those, piece by piece, and we'll understand what they're all for. We're gonna start with the data consolidation. And remember, why do we need to consolidate data? Because our definition of pay is very, very broad. So let's think about that now. When we look at, the required reporting metrics, we've got to report on things like the gender pay gap, the median pay gap, the pay gap in response to complimentary or variables, variable components. And remember that pay is described and defined as wages, salaries, or any other consideration. So how do we do that? So let's have a a bit of an architecture box because I do like an architecture box. Now the big box is Workday, and inside what you can see at the moment is your Workday HCM data. And in there, we have things like salary data, pay bands, and job architecture. Now all of those things will be useful for creating and understanding our equal work systems, and also for bringing, of course, the salary information. But what it will not have, unless you've already done a project for this, of course, is your, I guess, your non Workday rewards data. So things like incentives, bonuses, training compensation, all those elements that were referred to in the directive. So how to deal with this? Well, we take that data and we bring it into Workday, into Prism. And Prism allows you to consolidate all of this information and then blend it with your Workday data so that you can identify such things like equal work, worker categories, and then report on them with the full, salary and the full variable and complimentary benefits, information and allows you then to take that information and create the transparency metrics that we need to provide. Now if we take a look at that and what that means once you've got that in place, that sort of that what we would call the data foundation with Prism, then you can start doing the reporting and distribution. And as you will all know, reporting and analytics is very broad and very deep inside Workday. One thing I will just quickly point out that, part of the right to information means that you need to be able to serve up information to your employees. And a lot of employees, particularly in retail and manufacturing, don't necessarily have a laptop. So So how else are you gonna do it? Well, you're gonna need to share it on mobile. How do we do that? Well, we can do that with the built in reporting on the app inside of Workday. Now let's have a look again at those metrics, the gender pay gap. What would what would they look like inside Workday if you've created them based on your joined up dataset? Now that would probably look something like this, and this is a discovery board that, that we've created, for the for the webinar and for demonstration purposes. So look at how we look at things like the gender pay gap in article nine a, the gender complementary variable components in nine b, things like the proportion of female and male workers receiving complementary or variable components in nine e. And if we scroll down, we'll also see things like identifinements, which is basically broken down by ordering basic wage and salary or complimentary variable components. So the point of showing you this here is that we can absolutely deliver this type of reporting inside of Workday, based on that data that's been joined up using Prism. Now we can also because it's in Workday, we can start doing things that, because of the security we have, we can start doing drill down to the details that underpin that. So if you suddenly start finding big gaps, you can understand what's the supporting information underneath that that's gonna help us do that. We can start looking at where those gaps sit, where we've got the outliers, and then we can move on. And if we then start thinking about how we could use external analytics and extend to drive some of this, we could start looking at pay regressions. I I should say all of this is stuff that's been built internally here for demonstration purposes. This particular piece here is using extend, where we are looking at worst categories that have a gap that we've identified using those analytics, and then explaining that gap. And in this particular case, we've looked at years of service, experience, and education, and none of those seem to be as important as the fact that this person is a man in this regression analysis. So, therefore, we need to discuss how on earth we would close that gap. Now along with that, the the the type of analytics that we've just discussed, we would also want to be using things like the worker profile for the article seven requirements, or maybe a regression analysis for the EU paid transparency directive.