Marvin OnumonuWorkplace Journal speaks with Laura Fink, people and culture director at HiBob, about pay transparency, digital innovation, and the future of HR.
What common mistakes are companies making as they prepare for the EU Pay Transparency Directive, and how can they avoid them?
One major mistake companies make is treating pay transparency purely as a compliance requirement rather than embracing it as a business opportunity. This limited view causes some organisations to miss the chance to use transparency as a driver for better business performance and employee engagement. Leaving preparations to the last minute means organisations lack the time needed to properly build trust, set up clear communication channels, and install tech systems that can handle the operational demands of pay analysis and transparency.
Additionally, there can be a disconnect between official policies and actual practices, which can breed mistrust if not addressed in advance. To avoid these pitfalls, companies should approach pay transparency proactively – starting early, ensuring all stakeholders, especially leaders and managers, understand why transparency matters and how it connects to business strategy. They should invest in flexible, supportive technology that makes analysis, reporting, and internal communication about pay straightforward and secure. Upskilling leaders and embedding pay transparency into the company’s DNA are crucial long before the policy becomes enforceable.
Can you share ways HR teams are using transparency to boost engagement and equity?
HR teams have shifted to making pay transparency an active part of their culture, knowing that it is a key way to build and reinforce trust. By sharing both the reasoning and the details behind how pay is determined – such as salary banding, the criteria for progression, and the connection to company goals – HR ensures that all employees have a clear sense of fairness. Pay transparency initiatives are no longer just broad value statements; they are specific operational standards rooted in the day-to-day employee experience. HR thoroughly benchmarks compensation, uses analytics to identify where inconsistencies or inequities exist, and works over several pay cycles to correct these issues.
There is recognition that real organisational life rarely matches the textbook policy exactly: some flexibility, especially when hiring externally or rewarding talent, must be explained to employees for transparent understanding. HR also devotes resources to training managers so they feel equipped to discuss pay and answer tough questions, making sure the information employees receive is consistent and accurate across the company. This comprehensive approach strengthens engagement and underpins genuine equity.
How can organisations encourage open pay conversations without causing discomfort or resistance
Organisations that succeed in fostering comfortable pay conversations do so by embedding these discussions into their routine business culture, rather than treating them as rare or taboo events. They provide detailed, accessible documentation on pay philosophy and actively train managers on both the content and the soft skills needed for these conversations.
HR will often role-play these scenarios with managers and take the time to understand unique situations within each team. The aim is to remove the fear from both sides – employees fearing backlash for asking questions, and managers fearing they will say something wrong. Instead of waiting for employees to ask, organisations take the initiative to regularly share information in forums such as company all-hands meetings, departmental check-ins, or scheduled review cycles. Repetition and normalising of these discussions gradually reduces resistance, so pay talks become another constructive part of workplace communication.
How should HR teams assess new tech and AI tools to ensure they deliver real value for employees?
HR teams are encouraged to be selective and strategic when assessing technology and artificial intelligence (AI) tools, recognising that not all solutions fit all organisations. They consider company size, stage of growth, geographical distribution, and operational complexity before choosing tools. Modern HR systems often come with integrated compensation modules and analytics that make the compensation cycle more efficient and compliant, eliminating risks associated with spreadsheets and insecure data handling.
The best AI tools help HR spot pay equity issues, monitor salary history trends, and guide strategic talent decisions by surfacing actionable insights – such as which job families require adjustment or where salary growth has stagnated. Effective HR teams prioritise technology that offers clarity, speed, and security, improves manager and employee access to information, and ultimately supports smarter, faster decisions about pay and talent management.
Where is AI truly improving HR productivity, and where is it just adding unnecessary complexity?
AI shines in HR when it takes over repetitive, transactional tasks – such as running compensation reviews, securely analysing employee data, and generating reports – freeing up HR teams for higher-value work like strategic planning and employee engagement. In environments where HR previously relied on manual spreadsheets, this technological shift can be transformative, letting teams reallocate time and attention to projects that support business growth and workforce wellbeing.
Yet not every tech rollout is a guaranteed win: complexity arises if tools are not properly integrated, if staff are not trained, or if systems do not genuinely fit the organisation’s needs. When adoption is rushed or poorly managed, these tools can add confusion rather than clarity, resulting in duplicated work or underutilised systems.
How can organisations balance innovation with empathy as they prove the ROI of digital HR tools?
To truly unlock the value of HR innovation, organisations must also invest in empathy and psychological safety. Innovation inherently requires risk-taking and the willingness to share bold ideas. Employees need to feel understood and supported in this process; otherwise, change initiatives may be viewed with suspicion or fear, rather than excitement. That means company leadership, especially HR, must continually reinforce that adopting new technology is as much about supporting people – helping them experiment, learn, and grow – as it is about efficiency gains or metrics.
When HR and leaders lead by example – acknowledging uncertainty, showing vulnerability, and maintaining open communications – the balance between progress and care is struck, improving both return on investment (ROI) and employee experience.
What are your predictions for the HR function in the next two to three years?
The coming years will see HR shift even more towards being strategic partners in the business, closely involved in redesigning work itself rather than simply supporting processes. The divide between leading and lagging companies will become more pronounced, as those investing in AI and digital tools thoughtfully will be much better positioned to innovate and respond to change.
Some companies may use this as an opportunity to downsize, but those that find ways to do more with their current teams by combining human insight with AI will outperform those that pursue cost-cutting at the expense of talent and trust.
What core message should HR leaders and businesses take from these developments?
The key message is to seize pay transparency and tech-driven change as real opportunities for growth and improvement, not as burdens. Organisations that start early, thoughtfully prepare managers and teams, and prioritise trust and communication will be able to use these changes to strengthen their brand, build loyalty, boost performance, and create a fairer, more engaging workplace for all.
