With new regulations on pay transparency approaching, pay surveys are becoming more crucial than ever. But are there additional reasons to scrutinize salary structures and identify imbalances? (Spoiler: yes – and there are more than you might think).
Determining whether there are pay disparities between men and women performing the same or equivalent work – and if those differences are gender-based – is essentially what a pay survey entails. And no, it is not optional. Employers are already required to conduct this assessment annually under the discrimination law, and with new pay transparency regulations, the demands are becoming even more stringent.
However, the truth is that a pay survey is not just a requirement but also an opportunity. How about enhancing your employer brand? Building trust with employees? And making more informed decisions during recruitment and salary reviews?
Read more: Pay Transparency Soon to Be Swedish Law – Here’s What You Need to Know
Here are eight reasons why conducting a pay survey is worth your time and effort:
1. You see how the salary criteria work in practice
Many organizations have clear salary criteria and policy documents, but their actual implementation is far from guaranteed. A pay survey reveals how managers interpret and apply these criteria when setting salaries. This often brings differences and ambiguities to light, creating opportunities for dialogue and fostering a better consensus across the organization.
The result? Fairer and more consistent salary decisions over time, along with improved understanding among both managers and employees.
2. You set the right benchmark for your starting salaries
Setting the right benchmark for your starting salaries is crucial – both to attract the right talent and to prevent salaries from escalating uncontrollably. Through a pay survey, you gain insight into how the salaries for new employees compare with others in similar roles. You also identify if there are systematic differences based on factors such as gender, age, or department. With this knowledge, you can adjust your guidelines for new hires and create a more cohesive and fair salary structure.
Additionally, it becomes easier to benchmark your salaries – as you know exactly what salaries you offer today and where you need to position yourself to compete with others.
Read more: Pay Surveys – Eight Questions and Answers
3. You gain insight into how your salaries are actually structured
Does it sometimes feel like certain salaries just "ended up the way they did"? By mapping average salaries and salary distribution across different roles, you gain a clear understanding of how your salaries are structured in practice. For instance, what is the difference between junior and senior employees within the same job category? And is there any department that stands out?
In short, you get a comprehensive view that makes it easier to build a logical and cohesive salary structure – with a clear thread that both managers and employees can understand and support.
4. You clarify roles and responsibilites
A crucial aspect of a pay survey is evaluating the actual content of the job – looking beyond titles to examine the demands of various roles in terms of responsibility, skills, working conditions, and complexity. Through such job evaluation, you gain a deeper understanding of how different roles relate to each other – and why some should be compensated more than others.
5. You enhance your employer brand
A pay survey is more than just an internal tool. It demonstrates that equal pay for equal work is not merely a principle on paper, but something you actively pursue in practice. This is significant for both your current employees and those you aim to attract in the future. When salaries are set in a clear and transparent manner, more individuals will feel fairly treated, recognized, and motivated.
The point is: A pay survey builds trust. It also establishes an employer brand that conveys order, care, and a commitment to doing the right thing.
6. You go into the salary review backed by solid data
How do you make your salary review decisions today – is it driven by data, or does intuition sometimes take the lead? Once you have conducted a pay survey, you are likely to have a wealth of information at your disposal. You will know where the imbalances lie and what truly needs adjustment, making it easier to make decisions that are both fair and well-founded.
And it doesn't stop there. The survey also supports a more transparent individual salary setting, where each employee's salary can be understood and justified – both by the one setting the salary and the one receiving it.
7. You identify imbalances – even beyond gender
A pay survey is not just an effective tool for highlighting (in)equality – it can also uncover other patterns in salary setting, even those unrelated to gender. Perhaps new hires earn more than colleagues with longer experience. Or certain age groups or departments consistently have higher or lower salaries without a clear reason.
By identifying such imbalances early, you have the opportunity to correct them before they become entrenched.
Read more: Meet the Requirements for Pay Transparency – Ensure a Smooth Pay Survey!
8. You stay ahead of regulatory requirements
The Discrimination Act mandates that all employers conduct a pay survey annually. With the Pay Transparency Directive, expected to become Swedish law in 2026, the standards are set to rise even further.
Additionally, the CSRD sustainability directive requires larger companies to report on their efforts regarding equality and employment conditions. By taking timely action, your company can avoid falling behind as regulations tighten (and avoid fines and sanctions).
Simplify your pay survey process with Flex HRM!
Do you and your team want to work more efficiently with salary mapping and avoid messy spreadsheets, data chasing, and redundant tasks? With Flex HRM, we ensure you have everything you need for every step of the mapping process – from job evaluation to action planning. Perhaps the best part? Once the foundation is set, you can easily reuse it the next time it's needed.
Want to learn more? Feel free to contact us!
