TRS 2.0: The missing piece in your EU Pay Transparency strategy

With the gender pay gap in Europe averaging at 13%, the EU Pay Transparency Directive is set to transform how organisations report on and address gender pay disparities. For HR and Reward leaders, the directive presents both a challenge and an opportunity; while some organisations are proactively preparing, many still lack a clear strategy.  

In our recent webinar, Why TRS 2.0 should be part of your strategy for the EU Pay Transparency Directive, myself and Neil Ryland, Chief Revenue Officer at Benifex, explored how Total Reward Statements (TRS) 2.0 can help organisations not only meet compliance requirements, but also enhance transparency, drive employee engagement, and create a more equitable workplace. 

Here are six questions we covered…

1. Are businesses prepared for the EU Pay Transparency Directive?

In a previous EU Pay Transparency Directive webinar with Sequioa, we surveyed HR and Reward leaders on their readiness – and the statistics painted a stark picture: only 3% of organisations were fully prepared to meet the directive’s requirements, while 57% do not yet have a definite plan. With the legislation set to come into effect in 2026, the pressure is mounting for businesses to ensure compliance and build a culture of transparency and fairness.  

Data has often been a limitation for HR and Reward teams – especially for those organisations that haven’t got a benefits platform in place; compiling that data manually can be a very heavy lift. 

Many organisations are now using TRS as a key tool to ensure compliance with the directive. 

2. Why are HR and Reward leaders turning to TRS?

Employee expectations are evolving at pace, with 52% of employees saying their expectations of benefits have increased in just the last 12 months. Employees are increasingly looking beyond base salary and expecting organisations to provide a clear and comprehensive view of their total compensation, including benefits, incentives, and stock options. 

Therefore, HR and Reward teams need a reliable, scalable solution to not only navigate the directive’s reporting requirements, but also demonstrate their commitment to fair pay practices. TRS within benefits technology can: 

• Consolidate data to present a holistic view of employee compensation. Organisations will need to gather pay and benefits data across multiple sources, including HR systems, payroll, insurers, brokers and advisors. 

• Establish a consistent framework for reporting and compliance. 

• Reveal the impact of benefits on overall pay equity. 

By leveraging TRS, organisations can address pay disparities before they become compliance risks, ensuring that employees have a transparent understanding of how their rewards align with company policies and industry benchmarks. 

3. How can TRS also support your EVP?

Organisations are looking at TRS not just as a compliance tool, but as a way to enhance their Employee Value Proposition (EVP). A clear and accessible reward structure helps employees see the full picture of what they receive beyond base salary. When employees understand the full extent of their rewards, they feel more valued, engaged, and motivated to contribute to the company’s success.  

In organisations that don’t use TRS, employees often struggle to navigate complex, scattered reward information – whether spread across SharePoint sites, onboarding documents, or HR portals. TRS solves this challenge by centralising all reward data into one, user friendly platform, ensuring employees have easy access to relevant, personalised information.  

With relevant, timely and interactive communication, TRS also helps organisations empower employees and potential hires with a greater understanding of their total reward offering – helping them win in the ongoing war for top talent.  

4. What are the consequences of non-compliance?

Failure to meet reporting obligations isn’t just a regulatory risk – it’s a reputational one. Research shows that 86% of global employees prioritise high ethical standards when selecting an employer, while 79% expect a strong commitment to diversity and inclusion. 

Moreover, with the 5% cap on gender pay gap reporting discrepancies, organisations must have full visibility of their compensation and benefits data. This is because benefits can significantly impact whether the overall pay gap surpasses the 5% limit. Benefits like health insurance, pension, bonuses, stock options, and benefit allowances can have a significant impact on an employees’ total reward. For example, legacy benefit plans such as defined benefit pensions may create disparities if newer employees, particularly female hires, are enrolled in different, less generous schemes. 

Encouragingly, many of the webinar attendees said they aren’t waiting until the 2026 legislation deadline to take action – they’re already working to gain better visibility into their pay structures and ensure compliance with the new directive. 

5. What does Benifex’s TRS 2.0 tool look like?

TRS 2.0 represents the next evolution in total reward communication, offering a more dynamic, data-driven approach to pay transparency. It provides employees with clear, personalised insights into their total compensation package: 

• A user-friendly platform that visualises total rewards clearly. 

• Real-time updates on salary, benefits, and additional rewards. 

• Customisable reporting to meet compliance requirements seamlessly. 

• Modelling tools to help employees understand how their compensation evolves over time. 

• The ability to show employees where their salary sits within the salary band for their role – and how it compares to the median salary for their role.  

Integrating stock options and other benefits into TRS is also an important step for organisations to consider, allowing employees to see the full scope of their rewards, beyond just base salary.  

6. How are Benifex customers using TRS to drive results?

A major challenge for organisations is the significant time and investment spent curating benefits programmes, only for employees to remain unaware of the valuable rewards available to them.   

Forward-thinking organisations are solving this by embedding TRS into their benefits strategy – driving engagement and ensuring that employees value what’s on offer. Here’s how some of our customers have used TRS to support their reward strategy: 

The future of pay transparency

HR and Reward leaders must act now to ensure compliance and build a culture of trust – well in advance of the EU Pay Transparency Directive coming into force.

TRS 2.0 provides the tools organisations need to communicate total rewards effectively, support fair pay practices, and enhance the overall employee experience. By embracing TRS, businesses can not only meet regulatory requirements, but also strengthen their position as ethical, transparent employers.

Speak to one of our experts to find out more.