Pay is your largest capital commitment, and the only one without a governance framework. Under the EU Pay Transparency Directive it is also the one you now have to explain. Download the latest Syndio Research report to see what that’s costing you.
Compensation is 48% of GDP across the EU, more than half in nine member states and up to 55% in Germany. Yet the individual decisions behind it, like where an offer lands in the range or how an individual increase is sett, are made without a record of reasoning and without a feedback loop to outcomes. Salary structures govern the envelope, not the decision made inside it. The cost is structural, recurring and compounding.
In Europe it compounds for longer, because employees stay longer, and under the Pay Transparency Directive a pay gap of 5% or more that the employer cannot explain has to be corrected.
The Hidden Cost of Ungoverned Pay Decisions shows how big that cost is, how it builds, and what changes when pay decisions are governed in the moment they’re made.