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Prepare for pay transparency with flair

The EU Pay Transparency Directive, which Germany implements through its Entgelttransparenzgesetz (Pay Transparency Act), asks employers to make pay structures explainable and to measure pay differences between women and men. This article maps each of those topics to the flair feature that supports it and links to the setup steps.

Who can use this?

HR Admins and Salesforce Admins in Salesforce. Managers meet pay bands in the Employee Hub during Compensation Reviews and salary changes.

Understand what the directive asks of employers​

At a high level, the directive covers these topics:

  • Pay structures built on objective, gender-neutral criteria, so that work of equal value is paid equally.
  • Pay information for applicants, such as the starting salary or its range, before a contract is agreed.
  • Employees' right to pay information about their own pay and the average pay of colleagues doing the same work or work of equal value, broken down by gender.
  • Gender pay gap reporting, including the gap by category of worker and the share of women and men in each pay quartile.
  • Follow-up on gaps that an employer can't justify with objective criteria.
note

This article describes product features, not legal requirements. flair shows what your data says. Which obligations, deadlines, and thresholds apply to your company, and how you meet them, remains your decision, ideally with legal advice.

The following table shows where flair supports each topic:

Topicflair featureWhere to set it up
Pay bands and salary rangesPay Groups, Pay Grades, and Pay Levels, linked to Career LevelsManage compensation
Work of equal valueWorker Categories with four equal-value criteriaManage compensation
Salary range in job postingsSalary range filled from the position's pay bandCreate, advertise, and refer jobs
Gender pay gap reportingCompany pay gap analysis on the Equity Audits tabManage compensation
Employees' right to pay informationPay analysis snapshot per Worker CategoryRun a Compensation Review
Pay decisionsPay-band indicators in Compensation Reviews and salary changesRun a Compensation Review
Access to pay dataPermission sets and the Pay Transparency Manager permissionManage permissions and access control

Define pay bands and salary ranges​

In Compensations → Compensation Management, you build a pay structure from Pay Groups, Pay Grades, and Pay Levels. A Pay Grade or Pay Level carries the pay band. You then set a Pay Configuration on each Career Level, and every linked Position inherits its pay band through its Role and Career Level.

The Compensation Management tab with a Pay Group's Pay Grades and their Min, Max, and Midpoint amounts

Document work of equal value​

A Worker Category groups the Roles that do the same work or work of equal value, and it is the unit the pay gap analysis compares pay within. Each category records a description, a justification, and four equal-value criteria: Skills Criteria, Effort Criteria, Responsibility Criteria, and Working Conditions Criteria. flair tracks field history on these texts, so changes to this evidence stay traceable.

You set the category on a Role or a Position, and flair copies it to the employees. The Employees Without Worker Category list view names the active employees who still need one. With the flair AI integration active, flair can draft the description and criteria from the roles in the category for you to review before saving.

flair also stores a warning on a Worker Category when the pay bands of its roles share no amount or are incomplete, and lists those categories on the Equity Audits tab.

A Worker Category record with its description, justification, and the four equal-value criteria

Show the salary range in job postings​

When you create a job from a position, flair fills the salary range on the job form from the position's pay band. It fills Period, Minimum, and Maximum in the Salary section of Publishing Details, and you can still edit the values. When the position has no pay configuration or the band is incomplete, flair leaves the range blank for you to enter manually.

The Create Job wizard on the Publishing Details step, with the salary range prefilled from the position's pay band

Report on the gender pay gap​

The Equity Audits tab under Compensations runs a company-wide pay gap analysis for a date you choose. The result shows headcounts of women and men in the pay quartiles Q1 to Q4, the pay thresholds between the quartiles, and the average and median gap for each Worker Category. Results are aggregates and headcounts only, never individual salary amounts.

flair also does the following:

  • Highlights a gap of 5% or more in a Worker Category.
  • Withholds the gap for a category with fewer than six women or fewer than six men.
  • Stores every completed run and exports it as a CSV that keeps reporting what was true on its run date.
  • Runs the analysis once a year, for the whole company or per entity, after an admin schedules the job.

The Equity Audits tab with the Run Company Pay Gap Analysis button above a completed run

To start, export, or schedule an analysis, see Run a company pay gap analysis.

Prepare answers to employees' pay information requests​

flair has no dedicated workflow for receiving or answering an employee's request for pay information. What flair provides is the data an HR Admin needs for the answer: a pay analysis snapshot for a single Worker Category as of a chosen date. The snapshot records the headcount by gender and the average and median pay for each gender, and it stays unchanged after the workforce changes.

The Generate Pay Analysis modal on a Worker Category record with the Analysis date and Entity fields

Keep pay decisions within the pay band​

flair shows the pay band at the moment a salary is proposed:

  • Compensation Reviews — each manager review lists the current salary, proposed salary, percentage change, and a pay-band indicator with out-of-band highlighting for every employee. The review runs through an approval process, and Salesforce records the approval history. See Run a Compensation Review.
  • Single salary changes — in a Request Form with a salary change step, a pay band bar next to the amount shows where the new salary falls. See Change a salary.
  • Rule-based pay components — a Compensation Rule assigns a recurring amount or a formula-based amount to the employees of a Payroll Territory, so allowances follow one documented rule. See Create Compensation Rules and Time Type Rates.

A Compensation Review in the Employee Hub with merit percentages, new amounts, and a pay-band indicator per employee

Control access to pay data​

Pay data in flair is visible only to users with the matching permission:

PermissionWhat it controls
Flair Compensation Management and Flair Compensation Management Read permission setsEditing or reading pay configurations.
Pay Transparency Manager custom permissionThe Equity Audits tab: running, reading, and exporting a company pay gap analysis. Included in Flair Manager, Flair Salary Manager, and Flair Budget Manager.
Flair Salary Manager permission setIndividual salary figures.
Hide Employee Salaries, Hide Recurring Compensation, and Hide One-Time Compensation on the Employee HUB Feature recordWhat managers see of their employees' pay in the Employee Hub.

Worker Category records are private by default. To assign permissions, see Choose the right permission set and Control manager visibility.