Step 2 to EU pay transparency: building a grade and pay banding framework

After auditing existing pay data, the next step in preparing for the EU pay transparency directive is to build a clear and consistent framework for pay. This involves designing a transparent job architecture with defined salary bands and pay ranges that reflect the value of roles across the organisation.

A well-structured framework helps ensure fair pay across departments and job levels. It also supports career progression, internal mobility and retention, which are increasingly important to today’s workforce. When done well, it strengthens employee trust and helps HR leaders align compensation with business strategy.

This step is essential for meeting the mandates of the EU directive. It provides the foundation for equal pay and helps prevent pay discrimination by aligning roles with objective criteria and gender-neutral benchmarks. It also supports compliance with pay transparency laws across EU member states.

What does a grade and pay banding framework involve?

Creating a robust framework involves several key components:

• Designing a job architecture that defines job families, job levels and job titles
• Conducting job evaluation using gender-neutral criteria and objective criteria to assess work of equal value
• Establishing salary bands and pay ranges that reflect market benchmarking and internal equity
• Aligning pay structures with performance management, career progression and talent strategy
• Ensuring consistency in job descriptions and job postings to support transparent pay practices
• Identifying and addressing pay differences, disparities and inequities across categories of workers
• Reviewing average pay across functions and levels to support equal pay for equal work
• Documenting pay information clearly to support decision-making and meet reporting requirements

This process also supports gender pay gap reporting and pay equity analysis. It helps organisations meet national law requirements and provides a roadmap for remediation and fair pay decisions. In some cases, it may involve consultation with workers’ representatives to ensure alignment with internal governance and external obligations.

Key talent to lead your framework design

To build a framework that is strategic and compliant, organisations need HR teams with deep expertise in compensation, analytics and organisational design. Here are the roles to prioritise:

Compensation and Benefits Analyst or HR Business Partner (with compensation expertise)

These professionals play a central role in designing and maintaining job architecture and salary structures. They analyse internal and external pay data to support benchmarking and ensure pay levels are aligned with market standards and internal equity.

Skills required

• Strong analytical and modelling capabilities
• Experience with job evaluation and pay banding methodology
• Understanding of pay equity, variable pay and DEI initiatives

Salary expectations in Ireland

• EUR 45,000 – 75,000 annually for Analysts
• EUR 190 – 310 daily rate for Analysts
• EUR 60,000 – 85,000 annually for HR Business Partners
• EUR 250 – 310 daily rate for HR Business Partners

Total Rewards Executive or Manager

These professionals oversee the broader compensation strategy. They ensure pay practices support business goals and employee expectations and often lead the development of frameworks and action plans that address pay transparency and compliance.

Skills required

• Strategic thinking and stakeholder engagement
• Deep knowledge of salary structures, benefits and performance management
• Experience with pay assessments, remediation and transparent pay frameworks

Salary expectations in Ireland

• EUR 85,000 to 120,000 annually for Managers
• EUR 350 – 500 daily rate for Managers

Where to find the right talent

The best candidates for these roles are often leading initiatives within their current organisations. They understand the complexity of compensation design and the importance of aligning pay frameworks with business strategy. That’s why working with a specialist HR recruitment consultancy like Frazer Jones is essential.

We have deep networks across Ireland and the European Union and we understand the nuances of each role. Whether you’re hiring for a permanent position or need interim support, we can help you find the top talent to lead your pay transparency roadmap.

We also actively engage with professionals on platforms like LinkedIn, helping our clients connect with candidates who may not be actively searching but are open to the right opportunity.

In some cases, considering an interim role is the most effective way to approach compliance with the directive. An experienced HR professional with the right skillset may only be needed for a short period while the business is made compliant. If your existing HR team is strong, long-term support may not be necessary. We’re now equipped at Frazer Jones to provide top interim talent in Ireland, helping businesses access flexible expertise exactly when they need it.

Final thoughts

Building a grade and pay banding framework is a strategic investment in fairness, transparency and long-term success. It helps organisations meet the mandates of the EU directive, reduce the risk of pay discrimination and create a more equitable workplace. It also helps shift the burden of proof away from employers by ensuring pay decisions are based on clear, consistent and defensible metrics.

Need help hiring for your compensation and rewards team?