Pay Transparency: aligning legal requirements with HR procedures

Filling out your salary transparency report goes far beyond operational requirements; as it entails strategic people management approaches

The job market is constantly evolving, and for this reason companies’ HR management processes need to adapt to the ongoing changes and trends within this environment. 

Pay transparency, for instance, has not only been gaining momentum in the corporate world but has also become a legal requirement for companies with 100 or more employees, in accordance with Law No. 14,611/2023.

• See also: Salary Transparency Report: 7 Q&A to better understand this new requirement

Every six months, companies will have to fill in and disclose the so-called "Salary and Remuneration Criteria Transparency Report". This document includes information retrieved from the eSocial system, such as employee registration details, salary data, job titles, ethnicity, gender, etc. However, employers will be required to supplement the report by suppling information regarding:

• • Career pathways;
  • Criteria for salary and remuneration;
  • Efforts to promote female employment;
  • Criteria to decide employee eligibility for promotion to executive / management roles;
  • Policies aimed at encouraging the sharing of household responsibilities.

Essentially, what might initially seem like a straightforward operational requirement encompasses broader human resources management strategies.

Marcelo Leite, HR Manager at Domingues e Pinho Contadores, highlights the dual focus required: "While submitting data to eSocial, it is crucial to simultaneously engage in the development of our people and the identification of risks and opportunities. This dual approach ensures that company is supplying accurate information and allows it to address areas for improvement".

Therefore, it is clear that Human Resources consultancy plays an invaluable role in creating an internal culture that reinforces policies that represent a real commitment to wage transparency and equal pay. Such efforts include:

Career pathways: 

Creating or periodically revising job roles and salary structures is essential for ensuring equitable compensation among employees. A detailed analysis is required to guarantee that roles are compensated fairly, without discrimination between professionals performing identical tasks. 

Remuneration criteria:

Establishing transparent criteria is a key strategy for eradicating wage gaps based on gender, race, age, and other factors, thus promoting equality in the workplace.

Moreover, if the team understands that the company has a clear remuneration policy in place, employee satisfaction is strengthened, thus contributing to talent retention.

Hiring policies: 

Engaging a specialized consultancy to develop tailored hiring strategies can address the unique needs of the company. This approach should consider diversity, inclusion, and the specific competencies necessary for the organization's success, laying a foundation for transparent recruitment processes that reflect the company's core values.

Career development and job promotion:

A well-articulated career plan is crucial for attracting and keeping talent, aligning organizational goals with employee aspirations. This framework should be established using clear, objective criteria and reflect the latest market trends in gender equity, diversity, and inclusion.

HR process review:

The implementation of pay transparency measures, and other HR processes, should be regarded as an ongoing endeavor. This reflects a deep-seated shift towards a culture of equality and equitable compensation, extending well beyond the mere legal requirement to report data every six months.

"The gaps identified through our consulting process—determined by what practices the client already has in place or lacks—reveal the extent of the challenge. It might range from the development of a new policy to more intricate tasks like creating a comprehensive salary and job structure," notes the HR head. 

An in-depth perspective, alongside the adoption of modern tools and methodologies tailored to each company's unique context, is crucial for developing stronger internal management processes, which, in turn, facilitates compliance with regulatory standards.

Compliance with legislation and efficiency in HR processes

Domingues e Pinho Contadores leverages its labor expertise along with specialized HR management knowledge to provide consultancy and support for submitting salary transparency reports, offering tailored, holistic solutions designed to address distinct requirements. 

Our team at DPC stands prepared to assist your business in successfully implementing pay transparency measures. We are committed to ensuring compliance with regulatory standards while promoting a more equitable and just corporate culture. Reach out to us at: dpc@dpc.com.br.