SAP advances more native EU pay Transparency capabilities: Takeaways for SAP SuccessFactors customers

For existing SAP SuccessFactors customers, the announcement brings greater clarity. It confirms SAP’s continued investment in native, end-to-end support for pay transparency across recruiting, core HR, compensation, analytics, and data.

It also reinforces a position we have consistently shared with customers: SAP SuccessFactors already provides the foundation for EU Pay Transparency, and that foundation is being strengthened rather than replaced or redirected toward third-party integrations.

Optimisations for SAP SuccessFactors ahead of the EU directive

SAP outlined several enhancements designed to help organisations meet Directive requirements using native SuccessFactors functionality, supported by SAP’s evolving people analytics and data platform.

Read SAP’s full announcement here.

Key areas include:

Pay range transparency in recruiting

SAP confirmed expanded native support for pay range transparency across its recruiting solutions, including SAP SuccessFactors Recruiting and SmartRecruiters. These capabilities enable organisations to:

• Publish pay ranges directly in job advertisements
• Maintain consistent pay ranges across requisitions
• Remove reliance on salary-history questions

This directly supports the Directive’s requirement for pay transparency prior to employment and positions recruiting as an early and measurable compliance touchpoint for EU companies aiming to meet their obligations under the new EU pay transparency rules.

Gender-neutral pay and progression frameworks

SAP continues to strengthen native support for:

• Job architecture, grading, and role consistency
• Standardised pay bands and progression criteria
• Transparent and explainable pay decisions

These capabilities span Employee Central and Compensation and highlight the importance of structured job and pay data as the essential basis for achieving equitable pay outcomes and compliance with the EU pay transparency directive.

Employee right to information

The Directive introduces enforceable employee rights to pay information. SAP referenced native functionality that supports:

• Responding to employee pay data requests
• Providing comparator information in a controlled and auditable manner
• Managing workflows, approvals, and access rights

This represents a shift from policy to operational execution and requires governance alongside system capability.

Pay equity and EU Pay Transparency Insights

SAP also announced EU Pay Transparency Insights, delivered as part of the People Intelligence offering on SAP Business Data Cloud and planned for Q1 2026.

The insights are intended to:

• Extend pay equity analysis and visualisation
• Support Directive-aligned reporting at scale
• Combine HR and payroll data with broader enterprise datasets

Importantly:

• The capability extends existing pay equity analytics and does not replace current SuccessFactors People Analytics Stories reporting
• Adoption of SAP Business Data Cloud will require additional licensing, including for customers already using People Analytics Stories
• Customers can now factor this capability into their 2026 roadmap

What organisations should do now

With SAP’s roadmap clearer, a phased compliance approach remains the most practical path forward.

Activate and optimise existing SAP SuccessFactors functionality

Focus on establishing and configuring job architecture, pay structures, recruiting transparency, employee workflows, and People Analytics Stories. These capabilities are already available within SuccessFactors but are not always fully implemented or aligned.

Establish governance and reporting confidence

Ensure data ownership, validation, auditability, and response processes are in place ahead of employee information requests.

Assess SAP Business Data Cloud as an extension

Plan for SAP Business Data Cloud as it becomes available in 2026. Engage with Zalaris to understand its capabilities, licensing implications, and whether it delivers incremental value over existing People Analytics Stories, particularly for organisations that already hold People Analytics licensing.

This approach allows organisations to take action now, manage cost, and maintain readiness as requirements evolve.

Our guidance on pay transparency obligations

SAP’s announcement closely reflects the approach Zalaris has been recommending to customers.

What remains true

• Native SAP SuccessFactors functionality is the starting point for EU Pay Transparency
• Core compliance depends on data quality, configuration, and governance rather than technology alone
• Recruiting, Employee Central, Compensation, and People Analytics remain the core system pillars
• For many organisations, existing SAP SuccessFactors People Analytics Stories, when properly configured and governed, may already support initial pay transparency and reporting requirements without introducing additional analytics licensing

What is evolving

• SAP Business Data Cloud introduces a next-generation analytics layer that organisations can begin planning for
• The value of this capability should be assessed alongside data maturity, analytics needs, and licensing considerations

In practical terms, SAP has confirmed that EU Pay Transparency will continue to be supported natively in SAP SuccessFactors, with multiple approaches available depending on organisational needs and maturity.

At Zalaris, our role is to translate SAP announcements into practical, customer-specific roadmaps.

We support organisations in:

• Understanding what SAP’s evolving roadmap means in operational terms
• Achieving compliance using native SuccessFactors capability
• Evaluating where newer analytics and data services add measurable value

SAP’s 4 February announcement reinforces the guidance we have already shared. EU Pay Transparency is delivered through native SAP SuccessFactors capability, with SAP extending that foundation through broader analytics options.

Next steps

EU Pay Transparency obligations are approaching even as SAP continues to enhance its platform.

Organisations that are best positioned will:

• Act early and with clarity
• Avoid unnecessary tooling or duplication
• Build flexible roadmaps aligned with SAP’s direction

Talk to Zalaris about your EU Pay Transparency technology roadmap. We can help you align your current SAP SuccessFactors capabilities with new and evolving functionality in a way that is practical and commercially considered. Get in touch with expert consultants today.