{Replica} Fee Transparency Act in Reality Check

"Same thing Money for the same work – regardless of gender”: This is how it can be done Objective of the Entgeldtransparenzgesetz (EntgeldTranspG). This law is primarily intended to support women in better asserting their right to equal pay for the same work or work of equal value. That is the will of the legislature - but what about the reality?

The status quo

The Federal Statistical Office recently determined a wage gap between women and men of around 22 percent. Other surveys also look at factors such as frequent part-time work, breaks due to pregnancy and family work, and the fact that women are less likely to leading position and work far more often in lower-paid jobs than men.

If these effects are calculated out of the statistics, there still remains a wage discrepancy of around seven percent for comparable work and qualification – this is bad enough and needs to be corrected as soon as possible.

How effective is the law?

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Barely a year after the decision, the law is still much debated and commented and actually it remains questionable how effective the EntgTranspG is in terms of actual pay equity really.

• Of course, companies have taken the law as an opportunity to prepare for possible inquiries, but how many inquiries have there actually been in the last year?
• And is not every case ultimately a matter of interpretation if one looks closely at the criteria?
• Is it ultimately ('only') a bureaucratic process step that is well-intentioned at heart but lived past reality?

Awareness raising as a first step

Personally, I see the only real value in raising awareness of fair wages, which is demanded by the newly defined transparency obligation in the EntgTranspG. become like this Companys forced to really deal with the subject. They must finally question their own structures, recognize potential disadvantages and identify discrepancies. Companies must therefore arm themselves for internal inquiries and be able to answer them with justification.

Nevertheless: it remains difficult to prove actual discrimination – there is no absolute comparability. In the case of part-time employees, for example, certain increments such as frequent travel or job requirements such as changing locations do not apply. However, these comparison factors are necessary in order to create a general equality in payment. This is the only way to clarify in which cases a specific salary is unjustifiably lower and whether there is a gender trend.

Companies can no longer afford differences

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No company, whether medium-sized, Consulting or large corporations, can now more afford to make demonstrably strong differences between the sexes when it comes to salaries. The current job market is far too dependent on workers and employees for that Candidates driven. And they are increasingly demanding the wage transparency guaranteed by law. But this transparency also benefits employers: it creates Trust and shows that companies are guided by requirements and qualifications and not by gender.

From my point of view, transparency is also a Spiegel of the corporate culture - and not an end in itself. Is openness lived or is it only written into company values? A fair, competitive salary, whether for a man or a woman, is just as much a part of it Work-Life-Balance-Models. These have been an integral part of every employee satisfaction survey for years, such as the one carried out by the Great Place to Work Institute.

Transparency is not an end in itself

In addition, alternative family structures are no longer the exception. Men don't just take parental leave, they take families decide more and more aware of it, alternately im Job to stand and master everyday family life alternately - or to work completely equally in part-time or full-time. These changed role models mean that equal pay and transparency are no longer purely a "women's issue".

Despite all these changes, I'm still waiting for the applicant who courageously asks: “Ms. Martensmeier, what to earn because on average the men in this position?” Do they dare Candidate(inside) not or is this question already frowned upon or totally outdated in times of equality? My appeal applies in particular to women: Don't be accused of negotiating badly. Inform yourself, read market-comparative studies, get comparative data from yours networks and work your way into pole position. Having this information gives company-wide insights into salary structures and Courage offensive to negotiate.

A first step towards raising awareness, but still a long way to real pay equity

Despite these improvements, the question arises as to whether the Pay Transparency Act is the right means of establishing pay equity between men and women. Because the introduction did not change much at first. A new law alone does not lead to a fundamental one rethink at the companies or to other realities of life for the People.

Rather, it is important to stimulate an overall social discussion in order to establish equal pay. In short, the EntgTranspG is a first, but by no means the last, necessary step on the path to equal pay.

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