The Pay Confidence Gap: How Irish HR Leaders Can Turn the Pay Transparency Moment Into Lasting Competitive Advantage

Pay equity is emerging as one of the most consequential workforce challenges for Irish HR leaders. A survey of 750 Irish workers by NFP Ireland, part of global services group Aon, finds that more than two-thirds of women feel underpaid or undervalued in the workplace. Six in ten Irish workers overall share this concern, and the results land as the Irish Government confirms it will miss the 7 June EU Pay Transparency Directive transposition deadline.

The data presents both a challenge and a clear strategic opening for HR. A perception of pay inequity drives disengagement and attrition, and the gap revealed here is substantial. Three priorities emerge: closing the perception gap between how men and women experience pay, using the transparency framework as a trust-building tool, and embedding pay equity into board-level governance before enforcement arrives.

The gender dimension demands immediate attention. While 47% of men feel fairly paid, just 33% of women share that view. More than one in five women feel significantly underpaid, compared with one in eight men. Caroline Reidy CIPD, Head of HR Solutions at NFP Ireland, noted that pay equity is a key issue for many workers, with women particularly inclined to feel they are not rewarded sufficiently. These figures translate into recruitment risk, retention cost, and employer brand exposure.

The broader picture reinforces the urgency. Fifty-one per cent of all Irish workers feel underpaid, with 16% feeling significantly so. Workers aged 35 to 44 are most affected, with 57% expressing this view. CSO data shows Ireland’s gender pay gap stood at 9.6% in 2022, suggesting the lived experience of inequity runs deeper than the measured one.

The EU Pay Transparency Directive will require Irish employers to publish salary ranges, report on gender pay gaps, and justify differences above 5%. Ireland’s delay does not reduce employer obligation. Organisations that treat implementation as a compliance burden will miss the opportunity available to those who use it to build the trust and transparency this survey shows workers are asking for.

Three actions will allow HR leaders to convert these findings into competitive advantage. First, conduct a pay equity audit across all role categories and address gaps proactively before disclosure becomes mandatory. Second, publish structured salary ranges for open roles now, to signal commitment and improve candidate quality. Third, engage managers in structured pay equity conversations, ensuring the lived experience of fairness improves alongside the documented one.

The NFP Ireland findings give HR leaders a precise picture of where pay confidence breaks down and a clear mandate to act. Organisations that invest in pay equity, communicate transparently, and treat the Directive as an opportunity will be better positioned to attract and retain the talent that drives long-term growth.

(The views expressed by the writer are his/her own and do not necessarily reflect the views or positions of BusinessRiver.)