Pay transparency. Why is it becoming a competitive advantage?

Gender pay equality is not just a matter of fairness. It’s an issue that impacts the economy, corporate competitiveness, and employee trust. Although pay disparities are often explained by history or culture, their real causes run deeper and their consequences are far-reaching.

This was highlighted at the Sustainable Business Forum, held on 5 June 2025 at the French Embassy in Prague. Discussions revolved not only around the root causes of pay inequality but especially around how to solve it. The event brought together over 80 participants and 10 engaging speakers from business, government, and law. One key message echoed throughout: equal pay is not a nice-to-have benefit, but a cornerstone of trust and sustainable economic growth.

The event was hosted by Christophe Beaujard, Director of S&you CZ&SK, who opened the day by stating: “Equal pay is not an act of kindness. It is a right.”

Equality starts in childhood

The way we treat children shapes their future perception of fairness and their sense of possibilities. Francisco Kiss from Danone pointed out that “already in childhood, boys receive on average 20% more pocket money than girls.” And not only that – they are often rewarded for minor tasks that are seen as natural for girls. While girls are taught they should “just help,” boys are more often rewarded even for routine actions. These subtle patterns of upbringing can quietly transfer into adulthood.

Parenthood as a turning point

The arrival of children is one of the key milestones that shape career paths. As Jana Skalková from the Ministry of Labour and Social Affairs explained, “only about 30% of women return to their original jobs after maternity leave.” Often, this is a family decision – the option that makes the most sense financially and logistically is chosen. When the partner earns more, the woman stays at home. From a family standpoint, it’s a rational choice.

But in practice, it often means that women return to different positions or with lower salaries than they would have had if they continued their careers uninterrupted. This gap can affect long-term income and future pensions. As Josef Středula of ČMKOS reminded: “Pensions are calculated from wages, so lower pay during productive years leads to lower income in old age.”

Equal pay isn’t just fair – it’s smart

The benefits of equal pay are not just symbolic – they impact the overall performance of the economy. Martin Huba, Managing Director of SYNERGIE CZ&SK, pointed out: “If the gender pay gap in the Czech Republic were eliminated by 2030, it would bring the economy up to CZK 20 billion more per year.” A McKinsey analysis even forecasts a possible GDP growth of up to 7.8%.

In other words, investing in pay equality pays off – for companies and for society as a whole. It enables better use of talent, drives innovation, and ensures long-term stability. Yet the topic is often overlooked in both political and corporate strategies.

New rules are taking effect. Transparency becomes the norm

Legislation is driving change. Adéla Krbcová from Peterka & Partners explained that by 2026, the EU Pay Transparency Directive (2023/970) must be implemented. This directive guarantees, among other things, the right of employees to talk openly about their wages. Additionally, as of June 2025, the Czech Labour Code will include an amendment explicitly prohibiting employers from preventing wage information from being shared. This step strengthens transparency and allows employees to better compare their positions.

How to do it? Company examples lead the way

Danone and Komerční banka have shown that equal pay is not just about numbers – it’s about systems, mindset, and trust. Danone compensates income loss during maternity leave by paying full wages for the first 18 weeks. They also offer mentoring, clearly defined rules for salary growth, and performance-based evaluations. Komerční banka introduced a system that connects performance, market data, and individual contribution – resulting in zero pay gap between men and women in comparable positions.

According to the forum’s participants, companies that speak openly about pay and apply fair rules are gaining a competitive edge. They experience lower employee turnover, greater trust, and stronger reputations among both candidates and clients.

Tools and certifications can help

Forvis Mazars representatives Ivana Martinková and Martina Kučerová offered answers to the question “Where to start?” They explained how companies can work systematically to improve – from regular audits and detailed wage analyses to international certifications such as Equal Salary. With tools like collaboration with the Equal Salary Foundation, companies can identify weak points and move forward – even if the directive later applies to smaller businesses.

Start with what you can change

The discussions at the Sustainable Business Forum 2025 made one thing clear: equal pay is not an unreachable ideal. On the contrary – when approached systematically, it brings tangible results. Whether it’s lower turnover, higher employee satisfaction, or greater economic impact.

The examples of Komerční banka and Danone show that even relatively simple changes can have significant effects – not only on spreadsheet numbers but also on company culture and atmosphere.

So what can help?

For employers: start with an internal audit, involve HR in strategic decisions, use external tools like Equal Salary or consult experts.
For managers and team leaders: speak openly about evaluation criteria, track differences in opportunities, and listen to the story behind every payslip.

Tables are often not enough to achieve pay equality. If you’re unsure how to introduce these changes in your company, get in touch with us. We’ll help guide your first steps, prepare an analysis, or support your team toward fairer practices. Pay equality doesn’t have to be a distant goal. It could be your advantage as early as tomorrow.