Bridging the gender pay gap: From compliance to competitive advantage

In today’s evolving regulatory and business environment, Gender Pay Gap (GPG) reporting is not just a compliance requirement but a strategic opportunity and a critical component of an organisation’s talent, reputation, and ESG strategy.

As regulatory scrutiny intensifies with the introduction of the EU Pay Transparency Directive, and global stakeholders demand greater transparency, companies that proactively address pay disparities are gaining a competitive edge.

By leading in workplace equity, transparency, and fairness, organisations enhance their talent acquisition, strengthen their brand reputation, and demonstrate their commitment to key values that are increasingly important to global stakeholders.

Why addressing the gender pay gap is a business imperative

While GPG specifically applies to EU organisations for now, non-EU businesses can also differentiate themselves by proactively adopting these practices, demonstrating their commitment to these values and staying ahead of global legislation, enhancing their reputation and competitiveness.

Competitive advantages:

1. Enhanced employer brand & talent attraction: Businesses committed to pay equity attract top talent and strengthen their brand.
2. Stronger business performance: Companies with equitable pay practices boosts employee engagement and productivity.
3. Regulatory & litigation risk mitigation: Proactive Pay equity initiatives reduce the risk of non-compliance and reputational damage.

Common challenges in gender pay gap reporting

Previously limited to larger organisations, the reporting requirements now apply to employers with 50 or more employees. As a result, it is essential for all organisations to prioritise their GPG reporting obligations.

Yet, despite best intentions, many organisations face key challenges when addressing pay equity:

Instead of viewing GPG reporting as a regulatory overhead, forward-thinking companies will use it as an opportunity to strengthen their employer brand, improve talent retention, and drive meaningful cultural change.

Take a proactive approach to pay equity

At Grant Thornton, we understand that organisations are at varying stages of maturity in their EDI strategy and GPG efforts. Our Consulting Team combines data, HR and compliance expertise to offer a suite of advisory services designed to simplify reporting, drive meaningful insights, and design and implement sustainable solutions through our;

• Cutting-edge technology;
• Data and people-driven insights;
• HR and people expertise.

While GPG reporting comes with its challenges, aligning with the global benchmark provides organisations with the opportunity to demonstrate integrity and establish themselves as leaders in equity, gaining a significant competitive advantage over those who delay adoption.

At Grant Thornton, we help organisations turn GPG reporting into a strategic advantage, ensuring compliance while embedding a long-term pay equity framework that drives meaningful change. Whether you need support with regulatory compliance, with data analysis and HR expertise, our team is ready to assist.

To work together to build a more equitable and transparent future, please contact Áine Logan.

Learn more about how our Gender Pay Gap Reporting solutions can help you

Visit our Gender Pay Gap Reporting page