Name: Prepare for 2026 with confidence: How Workday helps you achieve EU Pay Transparency Compliance
Uploaded: 2025-04-17T10:21:31.503Z
Duration: 1 h 11 min 28 s
Description: Prepare for 2026 with confidence: How Workday helps you achieve EU Pay Transparency Compliance

Transcript for "Prepare for 2026 with confidence: How Workday helps you achieve EU Pay Transparency Compliance": Okay. So good morning, everyone. Welcome to this looking forward with Workday webinar. This is gonna be interesting today, looking at the EU pay transparency directive. We're just gonna wait a few seconds for people to come into the, webinar, and we'll kick off, in in in just a moment. K. As I said, we're just waiting for people to come in. We'll be kicking off very, very shortly. And just to make you aware, when we start, we'll be having a poll. So please do get your best EU pay transparency thinking heads on. There's gonna be a couple of questions that we'd we'd love to hear your input on. Okay. So I think we're gonna kick off now then. So as I said, welcome to this webinar on, the EU pay transparency directive with Workday. We're going to be covering a number of topics today, but, effectively, what we're gonna look at is how Workday can help you achieve the EU pay transparency directive requirement compliance. Now, first of all, before I start, I must mention our product statement. We will be calling out some features today. So, based on, the traditional way we would look at this, you must base any purchasing decisions on current functionality only. Functionality only. And today, because we're gonna be talking about legalities, there's also a legal statement. So we must absolutely be clear at the very beginning that I am not a lawyer. Damon, who you'll speak to, as well on this call, is not a lawyer, but we have spent a lot of time researching this, talking to customers, and liaising with legal teams. But please do be aware that what we say today is for information purposes only. It is not intended as legal advice. So please, please consult with your own legal counsel regarding any compliance related matters. They certainly can determine best what actually meets your business needs. But that being said, let's dive into what we're going to look at today. So first of all, we need to make you aware that this will be recorded, and you will receive a copy of this recording in twenty four hours. So over the Easter break, you can feel free to watch this as many times as you like. There will be questions and answers available. There's a q and a tab on the right hand side of your screen. Please do use that to submit questions. We've got a team of, answerers, sitting behind, the the in the backstage area, ready to answer those questions. And at the end, there will be a survey. Okay? And the survey will basically ask you what you thought of the webinar, so we look forward to your feedback on that. Now there will be three of us presented today. I'll introduce myself first, and my name is Neil Fromo. I'm a, solution consultant here at Workday, and my background is very much a data management and analytics background. I I've been working in that field for approximately thirty years now, and for the last year or so, I've been concentrating heavily on the requirements of the European Union pay transparency directive. I'll be joined later by Damien Taylor. He's the CTO of Workday products at Kainos, and he will be talking to you about an application they are developing, around this area. And behind the scenes as well, chief question answerer is Unni Alikoski. He is also a solution consultant here at Workday and has been working very closely with me and others in the team on the directive. We look forward to seeing your questions on this very much. Now the agenda that we've got today, is gonna be focused on what is the new EU pay transparency directive. First of all, we're gonna do a bit of education. We're gonna do a level set to make sure that everyone on the webinar is at the same level in understanding the directive. I've spent, a lot of time over the last, last few months in particular traveling around the EMEA region, and I should say I cover the the whole of the European region. And it's very interesting how different sets of customers have different views on the directive. There were different levels of preparedness, certainly. So I want to do first is to have a look at the directive and make sure that we're all, at the same level on that. Then we're gonna move into how does Workday technology help you to achieve compliance? But we need to say from the outset that, Workday, you can't just switch a button and say we are compliant. This is a very, I guess it's a complex directive, and it's quite onerous in terms of some of the provisions. So an immediate compliance stick is not something that you will get, from any provider. I think you would absolutely need to consult legal counsel, but we can certainly show you how Workday technology will help you to get there. Then we're gonna move into determining your approach, and this will be about, well, how are you gonna deliver this capability? And finally, following the q and a, we'll wrap up with a well, what to do next? What should be your project plan, and where can you go to get further information? Now before we do any of that, we are going to have a poll. And the first question on this poll, so please get your polling fingers ready. The first question will be, are you aware of the detailed provisions of the EU pay transparency directive? And based on the people in the call, I would hope that we'd get a reasonable percentage of people that do understand those provisions because, clearly, it's a very important thing, and we really need to start understanding that, you know, very soon if we haven't already. And, obviously, that's what we're gonna be looking at today. Okay. So that's very interesting. Almost a fifty fifty split there between people that do and people that don't. That's that's, that's a very interesting result. I would have expected to be a slightly higher one than I said, but okay. We'll we'll take that. So that's that's good. So the first part of here, for that for those people that don't know these, elements, you'll certainly get some education on that. So let's move on to the second question then, which is, do you have a project plan in place for the EU paid transparency directive? I'd expect this to be fewer in in the yeses based on that amount of people that actually understood it. If it was higher, then I think, we'd we'd be in trouble. But yep. So that's that's as I would expect there. So about 33 to 66%. Okay. Well, that's that's that's an interesting outcome. So I think it's fair to say this reflects very much what I'm seeing in customer sessions when I go around talking to customers, Because law hasn't yet been passed, as we know, we we don't know that we we don't actually know what we need to do yet. So that's why people have been delaying. But I think as we're gonna see in a moment, we need to sort of change that, and we need to start really thinking about how we're gonna deliver this. Okay. So, that's it for the poll then, I think. Great. So I I just need to now, let's start the the content, that we're going to look at, today. And we're gonna start with looking at what is the new EU pay transparency directive. Well, this directive, was passed a couple of years now back in 2023. And the reason it was created was to deploy a legal framework across the EU 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. It's it's been around a very long time. In fact, it's almost certainly always been a feature of our society. Now to illustrate to you what this really means, let's, travel back to 1968. We're gonna go to the town of Dagenham in Essex in The UK. Now in Dagenham, there was a Ford Motor Factory. And at the time, this factory was responsible producing some of the, you know, the most popular cars at the time, Cortina, the Ford Cortina was one of them. The Fiesta, my first car was another one. But this factory is actually famous for a lot more than just the cars it produced. And in particular, it's famous for its strongly principled workforce that unwittingly managed to kick off, a social revolution. Now in the factory, there were two sets of workers. Right? And firstly, there were the men on the production line, and they welded together the steel panels of the car body. Now secondly, there were the women. Now they were in the sewing machine room, and they were stitching together the fabric for the car seats. Now what the factory management hadn't realized, of course, is that many of these men and women were married, and though and consequently, they knew each other's wages. And when this disparity was uncovered, the women were, to put it mildly, not happy. Now they believed that they were entitled to equal pay because their job was of equal value. If you put it in context of the 1960s and the social elements that were changing, suddenly there was a desire for change. And they argued that their job of stitching together the fabric for the car seats was equally as valuable to Ford as the men's job of stitching together the steel for the car bodies. So management clearly didn't agree at first, but the women, as a result, went on a series of strikes. They were quite prolonged strikes, and in that process, a huge amount of public support was garnered. Now the result after this long and drawn out battle, was that they won their case on this principle of equal equally valuable work. And this, in turn, led to the creation of the Equal Pay Act of 1970. Now, actually, doing some research on this, this isn't the first instance of, using equal pay and comparable work. As far back as 1948, the Italian constitution enshrined this right for equal pay for comparable jobs. And if we go forward, we'll see that there's an enormous amount of legislation that's been passed since that time to try and eliminate this issue. And all forms of discrimination, as you probably know, were prohibited by the UN Convention in 1979. In the Maastricht Treaty in 1992, equality between men and women was made a centerpiece. But if we go forward to 2020, which was when the pay transparency directive was being thought about, it was seen that there was still a lack of transparency in these play systems, and that they were hindering progress towards the elimination of discrimination. And consequently, they found that there was still a 13% average gender pay gap in existence, which is a very significant gap and needs to be eliminated, and hence was born the EU pay transparency directive. Now we're going to see as we go through some of these, provisions that it can be seen as quite onerous, quite difficult to comply with. But when we're looking at it, we need to remember that the fact we have this directive is because it's trying to eliminate the social problem, a social problem of inequity in pay between the sexes, which should shouldn't be there. So always bear that in mind, and it's something that I talk to customers a lot about, and there's a lot of discussion on this point. So this directive then aims to enforce equal pay for work of equal value between men and women through enhanced pay transparency and enforcement mechanisms. And for pay transparency, you can read reporting, quite strict reporting requirements. And for enforcement mechanisms, you can read fines, and I think and and, of course, legal action. And what we're going to do now is we're going to dig in to some of those areas and see exactly, what the categories are that you need to start thinking about complying. So these transparency measures fall into three separate categories. There's actually a few more as well. Now in this webinar, I should also say we can't possibly cover every single thing in, the directive, but we'll certainly have a good go at covering the main, elements. Now the first set are reporting provisions, and this is really designed to introduce consistent gender pay gap reporting across the entire European Union. The second category is the right to information, and these are rights for employees and applicants to help understate understand the pay equity status in EU organizations. The third category is employer prohibitions, and this is a whole set of provisions that are designed to increase transparency. So so to begin with, there's a prohibition, there was a prohibition on asking salaries in about salaries in previous jobs. Workers will now no longer be able to prohibit workers from disclosing their own salary, which is which is quite a big one. And they will no longer be able to use or publish non gender neutral job titles and job fake job vacancies. And if you go through the directive, there's various other provisions as well, but these are the key ones certainly that have come up in the the discussions that I've had. Now let's dig in a little bit deeper and see, how we can look at the timeline, really. We need to think about when do we need to start complying with this these sets, of provisions. So first of all, the EU member states are required to implement the directive in local legislation by the 06/07/2026. The reporting obligations will come into effect on a phased basis starting on 06/07/2027, which is the following year. Now, that sometimes causes confusion. And so to be clear, I think the the prohibitions there, so is it, you know, the the ban on salary history questions, for example, and the rights to information will come into effect on the 06/07/2026. The gender pay gap reporting, will come into effect on the 06/07/2027, but the first reporting period for, that gender pay gap reporting will be covering the 01/01/2026 till the 12/31/2026. And there, of course, gives us a slight problem because we won't have the legislation until the middle of next year, but we need to start collecting data before we have it. And this, I think, is what's caused companies to delay on projects to start complying with EU pay transparency directive. It's getting a bit too close now, so we really need to start thinking about doing that, and we'll look at that in the action plan a bit later on. So now we know when the timeline is, who is it going to apply to? Now, based on the directive, the reporting provisions will apply to all EU companies with over 150 employees in 2027 and over 100 employees in 2031. If you dig into the detail, there is a bit more, on on the phasing, but at a high level that they are the numbers that were important. And it also applies to non EU registered companies with total employees above the reporting threshold in the member states as well. So it's not a get out clause to say, oh, well, we've got a headquartered organization, in The US or in a non EU registered, country. Yeah. Those companies will still have to comply with the regulations. So, so the next part is all around the right to information, and these apply broadly, to employees and to job applicants. And, of course, they also apply to all EU companies, whether they be public or private. Okay. Now now we can know the timeline, we know who it applies to, let's look at the four key areas of interest that we see, from our customers and from the various legal discussions I've had. Now the first one is the gender pay gap, and this is the piece that introduces the consistent gender pay gap reporting across all EU member states for the first time. Now what do we mean by pay? And this is probably the question well, in fact, there's two questions. This is the first one. I'll keep the next one as a surprise, but the first one, is all about what do we mean by pay. If we look into the directive, it says that the principle of equal pay should be observed with regard to wages, salaries, or any other consideration, whether that be in cash or kind, that workers receive directly or indirectly in respect of their employment from their employer. Now, normally, I wouldn't read out slides like this, but because this is directly from the the directive, then we need to make sure we get this absolutely correct. And and it's important because when we think about what that other consideration means, it gives us a set of examples, and it says variable comp may include, but is not limited to, things like this, bonuses, statutory sick pay, food allowances, training compensation, occupational pensions. In other words, it's very, very broad. And the fact that it says, but is not limited to, means that this is not an exhaustive list. We'll cover a little bit later on, potentially how we start collecting some of that data and doing some stuff with that. But for now, just look at those elements and think, are you in a position to be able to report across all of that information now? And if you are, then consider, are you able to report on it as a gross annual and hourly pay figure? Because typically, that's the sort of thing that, causes a major headache for for the various personas involved, you know, the reward people particularly. Right. So now we've defined pay, and a complex definition, it is for sure, and there's lots of debate around this, which I'm sure a lot of you guys on the on the webinar today, have been discussing as well. Now we've got the pay now, but how do we start thinking about comparing workers to see if there is a gap? So if I've got a particular pay amount, how do I know if there's a gap between me and someone else? Well, to do that, we need to think about defining equal work. And in article four, it is defined defined very neatly. It says, in fact, there's several things that we need to discuss here, but it says in equal, article four that employers must have pay structures that ensure equal pay for equal work or work of equal value. Now to define what it means by that, it goes further and helps us to look at what an employee category should be based on. And it effectively says that gender pay gap metrics must compare categories of employees doing the same work or work of equal value, just like, those, women and men back in the factory in 1968. That principle still follows through all the way to today. And, these categories in the directive are defined using a predefined set of criteria, and they are skills, effort, working conditions, and responsibility. Now if we can score these and set up a a job system or a job architecture that allows us to monitor this, then we should be able to group our workers regardless of job profile into categories of workers doing work of equal value. And this, again, is a big area of, I guess, debate, confusion, worry, in some customers. Some customers I speak to say, oh, well, we've got this all sorted. This is absolutely fine. We've been working on it for years. Other customers say, help. We we don't really know what to do here. The good news is, you know, we we are here to help. Okay. So we've now got this employee category defined, and we've been able to now create our gender pay gap report that does the, the other reporting of workers doing the same or work of equal value. We've got our pay definition. We've got our definition of what equal work is. What do we do next? Well, the next part is around something called a mandatory joint pay assessment, and this is where it reveals, if sorry. If the reporting reveals an unexplainable gap of at least 5% in an employee category, we will have to carry out a pay assessment in cooperation with workers representatives. So what do we mean by an unexplainable pay gap? Well, the unexplainable gap is basically if you've got an actual gender pay gap, are there reasons that we can justify it? In other words, it's a gap that should be there. It's not based on sex. It's based on something else. Now we've we've justified, you know, we've we've we've grouped together all of our, various worker categories. But to explain a potential gap, we need to use a set of extendable criteria that are referred to, in the directive. So it could be things like tenure, locations, performance, or education. In other words, we can use these attributes to say, well, actually, this gap, even though there's a gap of, you know, 15%, not 5%, it's because of the tenure of that person or it's because of, the location they have to that potentially are in, and so on. So this is not a definitive list. You can extend this and you can include whatever dimensions you need to help justify this. But it's important to say that even if we use some kind of statistical analysis to do this, when it comes to tribunal time or if it comes to come some kind of legal case, you can't just waive a piece of analytics in front of the the court and say, oh, this is this is our justification. It will become a piece of evidence in the overall case, but it's absolutely something that you will need to think about doing. Now once we've done that joint pay assessment and we potentially assessed or not, then, if if it's found that you need to adjust, adjust your pay systems, then you will absolutely need to do that. If if you find that you basically, if you find that, you do need to make an adjustment and you don't do it, well, there will be some consequences for that. And, of course, there will be legal costs, compensation as well that you could start thinking about. And in fact, some of these finance to start, you know, budgeting for this in in their planning. Now some of the other things that are interesting, we'll whiz through some of these. So, the in the applicant and employee work information, there are a few things that employees can request individual pay levels and average pay levels broken down by sex for the category employees, and they must be notified of this right or receive the information annually. So that's quite a big right to be able to see those levels, and in fact, many customers are quite concerned about what will happen in in June, 2026 when this becomes, law. It also requires job applicants to be provided with pay range details. So if you're applying for a job, you must see the pay range, and, it also requires for employers, to start making public, pay scales, pay levels, and how pay progression is set. Now finally, what happens if we don't comply? Alright. So as part of the requirement, employers are required to publish pay range data publicly to national centralized monitoring bodies. And if they don't or if there's a compliance issue with the job architecture, as I mentioned a while ago, there will be fines. And the fines are based on annual turnover and percentage so annual turnover or total payroll and as a percentage. So these could consent they could be very, very big indeed. Interestingly, again, I was in a in a session with a customer last week saying, well, do we really need to comply with this? What what will be the effect if if we don't? And when I pointed them to that particular, article in the directive, the answer was immediately, yes. I think we need to comply with this. So, you know, that you could potentially be looking at some big, fines down the line. Now who's who are the interested personas in this? Now clearly, the heads of rewards, heads of comp benefits, and head of equity, they are absolutely gonna be aware of this. So in fact, I would suspect a lot of you on the call today are are in those positions. Legal counsel and compliance officers, again, are gonna need to really understand this and understand the implications of compliance and noncompliance for their, organizations. And, of course, the HR data leads, the business partners and the administrators, they're all gonna need to understand these provisions, what they mean for their employees. First of all, let's understand the rights that they're preferred on them, but so it can be heard on them. But, also, the data administrators are gonna need to start to know how to bring this information together, which brings us to the next part, which is how can Workday technology help? Now there are three ways in which Workday technology supports the European pay transparency directive. I need to say from the beginning, you know, we we don't have a magic button inside Workday that says, here's your compliance, but the technology platform supports a lot of the directive's requirements. Now the first area it supports is reporting and distribution of those metrics that I've mentioned, like the gender pay gap, the right to information. There's a framework inside Workday that will help us deliver that effectively. The second part that the Workday technology platform helps with is the data consolidation for all of that rewards data and other information that you will need to start building out your gender pay gap reporting. The third part is the ability to manage process for the European pay transparency directive directly inside your HR system of record. Now we're gonna move on now and just have a quick look at each one of those areas in a little bit more detail. So let's start with data consolidation and and getting your data ready. Now article nine gives us a list of metrics that we need to have ready. So first of all, we need the gender pay gap. We need the median pay gap. We need a proportion of female and male workers receiving complementary or variable components. All good so far, but remember, the definition of pay is not simple salary. Remember, it's wages, salaries, or any other consideration, whether in cash or kind. Now that is a very broad definition as we discussed before, and it requires a considerable amount of data collection. So let's have a look at how Workday can do this. Now inside Workday today, you as a Workday customer, if indeed you are a Workday customer on this webinar or a prospect, you will have, you will have your HCM data. And inside there, we will have some of the elements we need. We will have salary data. We'll have the job architecture, maybe the pay bands, and some other elements that will help you start defining some of this gap reporting, but you will definitely not have all of it, which means we need to start thinking of a way of bringing in the data from those other systems and consolidating it into Workday. So we do that by bringing that information in and then blending it with the live Workday HCM data. So we can start creating datasets that look at employee categorizations. We can start looking at the the overall headcount and the FTE, the overall total cost, and then secure it with the Workday data in order to create the EU pay transparency metrics. And this this is a, this is an approach here that we're taking by bringing in data from outside, blending it with the current Workday HCM data, like the pay bands, the job architecture, doing changes as required in order to map data, in order to be able to understand it, and make it relevant for EU pay transparency, and then creating the metrics such as the gender pay gap calculations, the medium gap calculations, and the percentile ranges that that is required in the directive. So that's effectively how consolidating in the database works. Now once we have that together, then we can start thinking about what do we do with it and how Workday helps us to distribute this information in an effective way. Now as you will probably know, Workday comes with its own built in reporting platform, and we can use this to start complying with some of the elements of the directive. And it's it's it's useful to think about some of the, I guess, requirements for this for different types of workers. So in a discussion a couple of weeks ago, I had we were talking about precisely this point using Workday to distribute these And someone said, well, what about our workers that aren't office based? They're all on mobile. Well, it's a great question because and it it really points to some of the benefits here. Workday is, you know, has a native Workday mobile app. And in that, we can start sharing for things like the, you know, the the the pay, the average pay amounts and the comparisons that will be part of the rights to information. We'll look at that in just a moment. But when you're looking through what we're gonna show you, just bear in mind that it can all be done on mobile as well as as on the desktop. It's also useful because it uses the built in security that's sitting inside of Workday, and, of course, everything in Workday is audited as well. We'll come to that a little bit later. But the built in reporting and distribution platform is what is gonna help us, to start complying with some of those elements for the right information. For example, the article seven requirement, for the average pay comparison distribution. Here's an example of a worker profile where we have embedded a gender based average pay comparison into that, And you can see that Carmen here, who's the worker in question, just takes one look at this, report and we'll see immediately her pay in comparison to the the average female pay in the employee category she's in and the average male pay in the employee category. And this is a, the type of report that would enable you to comply with the right to information request. And in doing so, you publish this, and you don't need to worry about sending out notifications, getting HR tickets coming in, requesting loads and loads of reports that you would need to sort of do manually. This is an automated distribution method. Now what about, job postings? If article five, the the requirement to provide pay ranges or actual pay for job applicants, you can use, job postings, for example, to embed that information as part of the job advert. There's various other ways we can look at this, but this is one way that, certainly our recruiting customers will be able to comply with that article five requirement and do so using a consistent solid set of data coming from a single place. Now, what about managing the process? And in other words, helping us to be transparent. Well, EU PTD process management is is the next part on this. Right? And effectively, if you think about the joint pay assessments, you will need somewhere to start managing those processes. So this is where we can start building some of those into Workday. We could also have things like action plans that Damien's gonna talk to you a little bit about later on, and have other capabilities for, like, maybe putting in preemptive strikes on creating job profiles that would skew your, your pay scales. There are lots of reasons why we can start thinking about having process around this rather than just reporting in order to help you not only do the reporting, but to stay compliant over time and to plan for how, you stay compliant. Okay. Now this is all great, but just remember the spirit of the directive is all about transparency. It's all about being transparent. So how can or how or why do we need to be transparent, and how does that reflect in the directive's requirements? Well, one way is that in article 18, there is a provision that shifts the burden of proof. And it says here actually, it's worth saying that, actually, this this burden of proof before I say it, is already, this way in a number of EU countries. But for those countries that it's not, it just be clear now that it's in a case of disagreement about direct or indirect discrimination, it will now be for the respondent, in other words, the employer, to prove that there has been no direct or indirect discrimination in relation to pay rather than the other way around. So this means that when you're creating your data elements, when you're creating your analyses, your reporting, and your distribution, you need to not only create it, you need to be able to prove that you've done it and to be absolutely confident about the calculations you have made. Now how does Workday help with that? Well, data governance is built into Workday, and it enables us to provide security and audit on your process. Right? Again, I just need to stress, we don't make you compliant. We enable you to be compliant with this capability. Now first of all, in terms of having a consistent single set of data, we have one place to govern and manage all your EUPTD data. We provide the security with inside your core system of record in order to be able to actually distribute that information securely. And once you've distributed, that information and made that data available, we provide a simplified way of understanding wherever that data is being used. So if I create, my master dataset for EU pay transparency pay gap reporting, I can immediately see what reports, what analyses are being used from that dataset, so I can be sure to have control over them. The other thing about that is when reports are created, when they are distributed, when I do put, that report, as I showed you earlier, onto a worker profile, there is a full audit trail. So if it comes to tribunal time and, one of the arguments is, the employer did not make this information available, then you can go to the audit trail. You can say, look. Here's the date that I made this report available. Here's the dataset. It was made available at this time in this place, and that report was on your worker profile. So it's just a simple example of how the audit trail that's built into Workday will enable you to comply with all of these pieces. On top of that, if we make changes to any of our calculations, our worker categories, if we decide that actually we need to refine them, all of those changes are stored in an audit trail in our data pipelines. And finally, we can remove or anonymize any noncompliance EUPT data, and there's a lot of discussion around GDPR and how in a worker groupings and that are gonna sort of coexist with, these these, measures in this directive. So, finally, delivery, determining your approach. How do we get all of this stuff into our tenants and making it make it work? Now there are two broad solution options, and we're gonna hear from Damien in in just a in just a minute, on the built on Workday Canos pay transparency app. So Workday's partnering with Canos to develop the built on Workday solution for EUPTD. Now to be clear, this app uses, the Workday technology platform, and it is a built on Workday offering. And it will be supported, updated, and maintained by kanos. But just before I hand over to Damien, I'm just gonna talk about what this means because and to be clear, now this app, we mentioned here, mentioned previously the report the the three areas that Workday can help. And want to make it absolutely clear that this app is using those same three areas, but what it does is provide you with prebuilt content for these areas. And I'm gonna hand over to Damien to talk about that in a bit more detail. Thank you, Janelle. And, hi, everybody. Give me one second till I share my screen. Hopefully, everyone can see that. So as Nate said, we've built an application, using the Workday technology stack to prebuild reports, prebuild, templates for loading that third party data, and then prebuild screens and processes for configuration, transparency, pay reviews, and then the appropriate actions from all of that. It's built on Workday application, and it's sold on a subscription model. Most customers will go through a pretty similar journey for becoming compliant with pay transparency. They'll go through hits, Centimeters readiness, or they'll assess where they're at. They'll look at optimizing and enhancing, so they may need to change their compensation grades. They may need to change, job families, and then they'll have to do what we consider the discovery around where all of those total reward elements come from. Kinos, like, I'm sure most other, partners and consultancies out there, are offering services to help customers with that first or those first four blocks. Our application comes in at the very end of this process around they analyze and comply, So helping organizations understand where their pay gaps are, helping them with automatic explanation with the ability to override budget analysis, and then through the compliance from transparency all the way through to the annual reports. So we have designed this product inside Workday, and regardless of the journey you take on the first four steps, our application will plug into Workday to allow you to to do, the analysis and compliance piece. We expect this to be cyclical to a degree where when you do your first round of analysis, you may then discover that you need to go backwards in the process to maybe revisit the, revisit the job families or the gradings. Maybe they're too narrow, maybe they're too broad, but we expect there to be an element of revisiting those early steps as you go through. Nate has sort of touched on some of this already, about the importance of being inside Workday, and I'm not going to dwell on every bubble here. But what I do know is that you'll be using or planning to use core areas of Workday to manage really, really key areas of of your people journey from compensation to benefits. You're doing all of that inside Workday, and a lot of that data is required, a, for the analysis, but also then to do the, I guess, the explanation of where there may be a justified pay gap based on general neutral criteria. But I want to to focus on reporting security and interface or user interface. From a reporting perspective, bringing all of this data into Workday gives you enormous benefits. Yes, our application will come with pre built reports to allow you to analyze and to report on the compliance aspects of this, but once that data is inside Workday, it allows you to use that data for other use cases. From a security perspective, speaking to to lots of customers, not all of this data lives inside Workday. So this will be Workday data and non Workday data. And customers really have two options here. One is they move all of that Workday data out that they need, into a third party system and begin to aggregate that with third parties. Option two is they bring the third party data in and aggregate it with Workday data. I don't know about you, but it scares the life out of me to think of all of that Workday data that you've worked so hard to secure and control. You've got your security framework to say who can see comp data, who can see people data. All of that data is sensitive. All of that data is already secured in your environment. It scares the life of me to think that that data would move outside Workday, in a world where it's no longer as controlled and secured as it was inside Workday, which is why we believe the right option is bring that data into Workday, the third party data into Workday and aggregate it from there, not just aggregate it from there, but secure it from there as well using the same security constructs you've already got in place. And from a user experience perspective, absolutely key, employees should be able to see their total reward data, they should be able to see where they sit from a transparency perspective or an equity perspective, that should be inside Workday, but thinking of HR partners, comp partners, total reward partners, they should be able to do the actions they need inside Workday because if there's a pay gap, the pay review process, the action plans will result in compensation changes, so having all of that naturally inside Workday brings a lot of benefit and efficiencies as well. I'm gonna give you a quick tour of our products starting with Mark, head of Total Reward, where he's going to analyze the gender pay gap. Inside Workday, we've got, predefined reports and dashboards that give you an overview of where the there may be gender pay gap or equity issues inside your organization. Here we can see it by country, we can see it by cost center, we can see it by job profile. In this instance, we're looking at this from a global perspective, but we can begin to filter this down into, in this example, France. We can see that on the top left, there is disparity recognized in France. If you scroll across and begin to look at job profile on the right hand side, and if I expand that out, you can begin to identify where there may be, certain job profiles where there is a gender pay gap. My eye is immediately drawn to the call center operators, on the on the left hand side. These are workday reports and dashboards, so you can then begin to drill deeper into this, to figure out who is impacted. For now though, I'm going to navigate to our paid transparency hub. And from here, we can begin to do deeper analysis. We can do budget forecasting. We can look at outliers. I'm going to go into the full pay analysis. We're gonna look at the pay disparity analysis for France, and I've seen some of the questions popping up in the q and a panel as, Neil was talking. This, certainly from our solution perspective, will address some of those. Here, we're looking at paid disparity analysis in France. We're looking at this for senior engineers across different bands. The top row, we've got 10 employees. We're automatically seeing that the average pay for men is 46,000 versus women where it's 42,000. But if we scroll to the right hand side, we can begin to see what the unadjusted gap is. In this case, it's 15%. But as part of our solution, we've got our regression analysis capability where we will analyze your pay data against those gender neutral factors to begin to automatically explain. In this case, using working conditions and performance history, it was able to explain that 5% of that pay gap is justified, which means there's now a 10% gap that needs to be corrected, based on on the legislation. You could drill deeper into this and you could see that explanation for individual employees. We also recognize that not all of this can be asserted from data. There may be other factors where you might need to override this, so we have good screens and functionality that allow you to take other corrective measures in terms of explaining that. If I scroll down to budget forecasting, again, looking at the same group of engineers, we can see for the top row, we have identified that there's two people impacted where they're under the average or 5% under the more than 5% under the average, and we can see that the total cost to remediate that gap is €12,000 with the ability to drill down deeper. We can see the two people impacted, and we can see the remediation amount for each of those and then begin to take corrective action by creating an action plan either for individuals or for a group of individuals. When it comes to the transparency part, Neil touched this I've touched on this a lot. It's important that employees have the ability to access where they sit in terms of their equal working groups. Some organizations will take different approaches to this and we've to date, we have identified two ways that that we want to help organizations do this through our application. Some organizations may choose to not make this available on a sort of an open format so that employees can self serve. In this case, employees will have the ability to come in and request their pay information that will route through a business process that we've created inside Workday to the right HR partner, to the right comp partner to begin to choose what data they want to give back to that employee. So it's a seamless efficient flow, but it's a request process where if employees want to see it, they have to ask to see it. That said, some organizations will go for the other approach where they will want to make this completely transparent and open and want to make this available through the employee profile. I think most organizations will will adopt the total compensation view, because for the first time, probably for most organizations, the full total reward data will be inside Workday. What that means is, in this case, Logan, Logan will be able to come in and see her full total reward and see the full breakdown of that based on the data that was in Workday plus the third party data that's been brought in to help with that pay gap assessment. We've also the ability to show Logan where she sits in terms of her equal pay group. She can see the minimum, the midpoint, the maximum, and she can see in this case, Logan's doing quite well. Her line is the red line, so she's above average in terms of of her pay. But if you choose to, you can begin to let employees see this level of information as employee self-service, or you can put it behind that request process that we looked at earlier. In terms of configuration, and I saw a couple of questions pop up on this on the chat as well. We recognize the need for a system that's highly configurable. We know that every member state will adopt the legislation differently. We know that every organization will interpret that legislation differently or maybe choose to apply the same rules across all countries, maybe taking the lowest common denominator and applying that across all countries. So for that reason, we're building this application to be highly configurable. So here, if we look at our configuration around setup pay transparency, the one that I've got expanded here is around the explanation factors. This is allowing you to choose what data can be used by the equity analysis engine using that regression analysis techniques to begin to explain some of that gender pay gap. So here for Germany, we've got it configured to look at job history, effective dates, and job profiles. We've got for Francis Bean, we've got it configured just to look at performance. So we will give you the flexibility to configure this, how you choose. We will give you base configuration based on what we understand the legislation to be. But as as Neil said, we're not legal experts. We're not your legal experts. Unless we will give you a baseline, we will expect you to work through that with your legal counsels to to come up with the best adoption of the legislation based on your interpretation of it. And towards the bottom there, you can begin to see other configuration areas. The very bottom one is just sneaking out of the screen is reporting currency because there's a bit where you're gonna have to do some level of currency smoothing here as well perhaps. We've designed this not just for EU. We've designed this for global pay transparency. So if you want to adopt this in other countries because of legislation or just because it's the right thing, our solution will allow you to do that across non EU memberships as well. The final piece of, configuration I want to show you is how flexible this is in terms of what you make available to employees. So you could show that full comp ratio, to employees. You can choose what countries that's immediately available to for employee self-service. You can choose what in what regions have the ability to do the request. You can begin to show what progression analysis or sorry. Pay progression information you want to show to employees as well. But, effectively, all of this is highly configurable, so you can configure this differently for every country that you operate in or switch it off for certain countries if you desire as well. So that was a quick tour of the product. Just to explain where we are with our product, we are now looking early adopters. That's customers who want to access the product early. They want to provide feedback, help us refine the features and the future roadmap. We're building this as a product. We will do feature releases. Twice a year, we will begin to evolve this product to to align to what we're hearing from design partners and early adopters. The product will go general availability later this year, where at that stage, it'll be a product that's been tied tried and tested by the early adopters and a product that is live, in production, helping customers with that analysis. In the doc section, there's a couple of there's a one pager in there, and there's a a link for anybody who wants to explore becoming an early adopter of the product. But at this stage, I'll stop sharing and hand back to Neil. K. Thanks, Damien. That's that's great. I think what we're gonna do now is quickly move on. We're running out of time a little bit. So much to cover, not enough time to cover it as always. We just looked at that KANOS app there. Absolutely encourage you to come and have a look at that. And in fact, if you look up in the top corner of your screen there, you will see, I'd like to know more button. So if you would like to know more, please do click on that, and we will be able to contact you, to give you more information, and to answer any of those other questions you may have. So set that button up there on the top of the screen. I'd like to know more. Now the other option you have, if you decide, that the k NOS app is, not going to fit your particular organizational situation having reviewed it, then you actually absolutely have the option to self build a Workday solution, with with service providers that can help you to do that. So if you're if you're looking down that line, again, click on the the I'd like to know more button, and we can certainly help you with that. At that point, I'm going to invite my esteemed colleague, Eunni Alikoski, fellow expert in a huge pay transparency directive, at least from the Workday side, to join the stage and and basically ask if let me ask answer some of the top questions that have been coming up in the, the q and a panel. Yeah. Thank you, Neil. So as as we have had hundreds of questions, there's I'm sorry for not being able to answer all of them, but there are a couple of themes that has been repeated. So the first question may be new to you is that has it directly been made law in any country as yet? That's a very interesting question. So it it hasn't been made actual law in an entire country. Interestingly, Belgium has got a partial implementation in some areas, particularly around public sector workers in a in a regional area. And one of the interesting things about that one is that it's been slightly gold plated, in that the pay ranges on the job adverts are to be refined are actually to be required on the job advert and not at some time before the contract is signed, which is there's been some sort of discrepancy in that and understanding in the directive, but in in Belgium, at least in that part of the legislation, that has been gold plated. Now in Sweden, and The Netherlands, they publish drafts, and Sweden is an interesting case because it doesn't just take the, elements, it also looks to implement some of the, or merge, I guess, some of the, provisions that they already have in their local legislation. And it's looking like, although, again, we are not lawyers, it looks like it will apply to more than 10 people, companies rather than the 50 that the the directive requires. Now other areas like Germany, Ireland, Netherlands, Poland, Sweden, Spain, have also got a plan in place. But is there any actual law? No. No. There isn't. Thank you, Neil. Second one also for you. So, will Workday be building anything into the core product for EU p d PTD in the future? That's a great question, one that comes up a lot. I think the answer to that is, no. We won't be we won't be providing a a turnkey switch on from inside your core HCM to to cover this. Hopefully, what I've shown you today gives you an an understanding of why that is the case. It's it's complex. There's lots of different moving parts, and that's why we've chosen to partner with Kainos to build the built on Workday application, to to support that need. Thank you, Neil. The next question, quite specific, Damien, to you. So will the Canos application provide guidance of the impact that the new offer for a candidate on employee would have on the pay cap? Yeah. I mean, from our perspective, it's one of the benefits inside Workday where we we expect that organizations will want to do a lot in the flow of work. But, yes, if somebody was if somebody was, for example, create an offer, that offer could, in real time, prompt up and say, based on this offer, this is going to give you a pay gap of x. It's gonna affect these two people or these three people, and the budget required to close that gap is why. So inside Workday allows us the ability to provide that inline functionality to assist not just in pay reviews as part of the product, but also pay reviews as part of normal Workday processing. Okay. Thank you, Damien. And maybe the final question here. So, Neil, how far does the definition of the pay extend, and do we need to include everything? That's that's a very good question. Well, the directive, as we saw earlier on, it has a very, very broad definition of what consideration or pay is, and it covered all sorts of elements from expenses of food, for travel expenses, variable pay. You know? In, discussions with customers, there's particular interest in things like incentive systems. And, you know, we have a a a a a a a a a a a cheaper system at work day and in this a cheaper system, you may have something similar. You know, you we award each other points for for doing, you know, a good job that we're recognized. And when you build up a number of points, you end up, with the ability to go and get, like, a a set of steak knives or or something that you pick off the shop. There's a great lot of discussion amongst the customers that I talk to around how do we accurately value those things. Other customers are talking about, you know, chocolate, things like that, things that are put into, allowances for employees, how do we make sure we accurately account for them? That's one thing. So does it include all of that? Well, the answer is we think it probably does. We're not lawyers, but we think it probably does based on the discussions, and the reason that it it probably does is because, first of all, the definition is very wide in the directive. And second of all, when we think about the spirit of the directive again, it's about transparency. It's about being able to truly eliminate that discriminatory pay gap If employers are allowed to just forget about that piece of, comp over there and this piece of comp over here, then transparency will not be achieved. Now in the initial reporting, you may not report it, but when it comes to someone taking, you know, having a joint pay assessment and potentially then taking a legal case against you, then when it comes to tribunal and the employer says, well, I've got a gap and this wasn't included, this calculation was included, this person has this, but they didn't include it in the calculation, then I can only assume that that's not going to, you know, the optics of that, let's say, are just not going to look very good, and it will not help you, to win a case. So I think the advice that, that customers have been given, from from their legal counsels and the the overriding answer to that that I've heard from customers is that, yes, you should include, as much in all as you can. Thank you, Neil. So just conscious of time, maybe send back, Neil, to you for the final word. Okay. Brilliant. So where should we start the journey? I think you'll agree we've seen there's a lot of complexity in this. There's lots of things to think about. The key thing is is you're running out of time to do it. So first advice is to engage with your legal counsel and Workday service providers to determine the best approach that you could take for complying. It is gonna take consultancy. It's gonna take thinking. It's gonna take reviewing of your job architectures and so on. It's gonna take time, so please do think about that now. And in terms of that, the data you really need to be worrying about, I say based on the discussions I've had, is collating and, I guess, harmonizing all of your reward data that you're gonna be using for your calculations, finding a way of consolidating that. And then, secondly, at the same okay, really at the same point in time, look at your job architecture and make sure that you're happy that deriving equal work or the work of equal value, should I say, based on those objective criteria that we talked about earlier on, working conditions, effort, skills, and responsibility, be sure that your job, structure is gonna be able to support that. So they're the first two things to really think about. And then I think the third thing, would be to, as soon as you can, review the Knoos pay transparency built on work application. And and, of course, along with that, start the project to start consolidating your EU PTD data, both your reward data and your definition of your categories and so on in all the all the data that would allow you to describe your categories in inside of Workday. If you do all of these three things, then you're gonna be in good shape to start looking at your compliance journey. So call to action. So for further information, please do contact your account executive for help. That's your Workday account executive. And again up here, if you press that button, we can do that for you. We'll be more than happy to help give you more advice, around this topic. The next thing, save the date. There is a there are a number of, webinars coming up. The next one is going to be on the July 8, in which Damien and the K NOS team will be going into a much deeper dive on the K NOS paid transparency application. So please do do that. Number three, look out for regional events. So I'll be speaking next week in The UK at HR tech, that's at the Excel Centre in London. And in your regional areas, there will be Elevate, and there will almost certainly, in fact, will be EU pay transparency related sessions at all of those. So with all of that done, I'd really like to thank you, enormously for being on the webinar. It's been fantastic to have so many people. It's an an enormous amount of people, which just shows how important this topic is. Please please do contact us for more information if you need it. But in the meantime, I will leave you to the rest of your day, and hope you enjoy a fantastic, Easter break. I thank you very much. So I'm just gonna stop my show now, and we'll end the webinar. Okay. So before we just nip off there, we can see there that we have another session. The next one, looking forward with Workday, is all about discovering Workday contract intelligence, and that's powered by a new acquisition of Eversort AI. If you want to book in for that one, click on the or scan the QR code there, and register for that. That's on the April 29, at 2PM BST, and I think looks like it there. It's repeated at three to 4PM, c e well, that's a different time zone. Yeah. So two to 3PM BST. So that one is on, discovering workday contract intelligence, by Evisort. So thank you again, and, have a great weekend.