Why Pay Transparency Is Becoming a Norm in Hungarian Companies
European Union directives are moving pay transparency from a best practice to a legal requirement. From summer 2026, Hungarian enterprises with more than 1,000 employees must publish salary ranges for all positions. This legislative shift forces organisations to re‑examine their payroll systems, compensation policies and organizational culture. The move raises a series of questions for HR leaders: How can they align pay structures with market realities? What processes guarantee fairness and comply with new regulations? The answer lies in thoughtful implementation and continuous communication.
United Platforms: A Case Study in Forward‑Thinking HR
United Platforms (the flagship of atlantan.com) is one of Hungary’s first adopters of transparent pay. According to Rózsa Katinka, the company’s HR director and a proud Corvinus alumna, the decision was rooted in the firm’s core values of transparency and employee education. “When employees understand the logic behind their salaries and see the earnings of colleagues in comparable roles, motivation and trust grow,” Katinka says. After an initial launch in 2017 that faltered due to insufficient preparation, the company revisited the program with a systematic review of job roles, responsibilities and market benchmarks.
Key Lessons From the 2017 Attempt
United Platforms learned that transparency without context can spark confusion and resentment. In 2017, the company revealed salary bands but stopped short of explaining the criteria that set those ranges. Employees asked why a senior developer earned three times more than a junior analyst without clear progression pathways. The backlash highlighted the need for paired communication: pay data must be accompanied by education on market trends, role expectations and career ladders.
Building a Robust Pay‑Transparency Framework
For HR directors, the process begins with a deep audit of existing compensation structures. Steps to create an effective framework include:
- Job‑descriptive clarity: Define responsibilities, required competencies and required outcomes for every role.
- Market benchmarking: Collect regional and industry salary data to align internal pay scales with external expectations.
- Internal equity analysis: Identify and correct pay gaps that arise from gender, seniority or skill differences.
- Communication strategy: Prepare training modules and workshops that explain how pay bands were derived.
- Feedback loops: Establish anonymous channels for employees to voice concerns and inform continuous improvement.
By following these steps, United Platforms was able to harmonise salaries before the public launch in 2023. The company reported a dramatic turnover drop—from 27% to 3%—and a faster time‑to‑fill for critical roles. Employees who felt their compensation was fair and that the company respected market standards were less likely to consider external opportunities.
Why Employee Engagement Fluctuates With Pay Transparency
When pay ranges are hidden, employees often rely on rumors or assumptions, driving anxiety and speculation. Transparent pay removes uncertainty and empowers workers to focus on performance rather than compensation myths. A survey conducted at United Platforms revealed:
- 90% of respondents felt satisfied with the clarity of their salary.
- 76% reported increased trust in management.
- 68% said they were more likely to recommend the company to peers.
In addition, the public presentation of pay data aligns with modern expectations of corporate transparency. Workers want to see that rewards are earned, not arbitrary. Transparency also serves as a deterrent to pay discrimination, an important factor in retaining diverse talent.
Strategic HR Practices for the EU Directive Implementation
HR leaders must treat pay transparency as an opportunity rather than a regulatory burden. The approach should be strategic, interdepartmental and data‑driven. Key best practices include:
- Cross‑functional collaboration: Engage finance, legal, operations and communications early. Pay decisions impact many facets of the business.
- Data governance: Protect employee data compliance with GDPR while ensuring transparency aims remain data‑rich yet secure.
- Change management: Framing transparent pay as a step toward equity helps garner employee buy‑in. Use storytelling and real examples.
- Continuous monitoring: Post‑implementation audits catch inadvertent pay disparities or misalignments with market shifts.
- Leadership endorsement: Leaders must model openness, answering questions and sharing their own compensation rationale when appropriate.
Action Plan for HR Directors
If your organisation is preparing for the upcoming EU mandate, start with a readiness assessment. Identify gaps in your current pay system, develop a timeline for adjustments and assign responsibilities. Use United Platforms’ example of harmonising salaries before public announcement as a benchmark. Partner with external consultants if necessary, but keep the process internal to maintain stakeholder trust.
The Broader Impact on Hungarian Business Culture
Pay transparency resonates beyond employee motivation. As more Hungarian firms adopt the practice, market competition for talent will become rooted in clarity rather than hidden cues. Transparent pay can level the playing field for women, minorities and newcomers, aligning Hungary’s employment landscape with European standards. Corporate brands will also benefit from reputational gains—modern consumers increasingly regard transparency as a corporate virtue.
Next Steps for HR Professionals
Ready to bring pay transparency to your organisation? Start by mapping out your current compensation framework and identifying areas where cross‑departmental input is needed.
Discover Master’s programs in HR at Corvinus University, which equip leaders with the knowledge and tools to navigate these transformations. For an in‑depth discussion, read the full interview with Rózsa Katinka in our news article. If you’re interested in starting a career in HR, explore career opportunities at Corvinus University today.
