Salary Gaps Unjustified, Say 60% of Romanian Employees Ahead of EU Transparency Directive

Romania is gearing up to adopt an EU directive mandating salary transparency, yet a significant gap in trust persists between employers and employees regarding compensation practices.

A recent study reveals that a substantial majority of companies, 76%, acknowledge paying varying salaries for comparable positions. However, this practice is viewed skeptically by employees, with only 27% expressing confidence in the fairness of their organization's remuneration system. The study, conducted by Reveal Marketing Research for Up România, indicates that while companies often justify pay disparities based on performance, experience, or individual negotiations, 59% of employees deem these differences unjustified.

The core issue appears to be a lack of clear and credible explanations for how salaries are determined. This ambiguity fuels employee distrust, even if pay differences themselves are not inherently problematic. The findings suggest that transparency is key to fostering a sense of equity.

Employees are increasingly seeking open communication about salaries. The study indicates that most workers are aware of the upcoming EU directive on salary transparency, with about 72% having heard of it. A strong majority, 80%, stated they would be more inclined to apply for jobs at companies that openly advertise salary and benefits packages. Furthermore, 41% of employees indicated they would even accept a slightly lower salary if it meant working for a transparent organization, a sentiment particularly strong among those with mid-level experience (53%) and in multinational corporations (47%).

Employers are generally aware of the directive, with over half familiar with its requirements. However, only 19% feel that Romanian companies are adequately prepared for its implementation. Elena Pap, CEO of Eurasia Upcoop Group and Up România, noted that the directive represents a significant shift in employer-employee relations, impacting how organizations build trust and explain compensation decisions. Despite employers' claims of partial transparency (96% say they provide at least some information), employees remain unconvinced about the equity of the system.

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The salary transparency directive represents one of the most significant changes that will influence the relationship between employers and employees in the coming years. Beyond compliance obligations, we are talking about a profound transformation of how organizations build trust and explain decisions related to remuneration.