Equal pay workforce reporting with SAP SuccessFactors

Equal pay reporting refers to an organisation’s obligation to measure, analyse and disclose pay differences between female and male employees performing the same work or work of equal value. Under the EU Pay Transparency Directive (EU 2023/970), employers must be able to demonstrate how pay is set, identify gender pay gaps, and provide transparent remuneration data to employees, employee representatives and regulators.

This includes reporting on average and median pay gaps, pay ratios, and remuneration structures, supported by objective, gender-neutral criteria. Equal pay reporting is a core mechanism for enforcing the principle of equal pay for equal work across the European Union.

Equal pay reporting obligations apply to employers operating within the European Union, based on workforce size and national transposition timelines. Organisations with 250 or more employees across EU Member States will face mandatory annual gender pay gap reporting, with lower thresholds introduced in later phases.

Importantly, employee numbers are aggregated across EU countries. This means organisations with smaller local entities may still fall within scope once total EU headcount is considered. Many organisations are therefore preparing equal pay reporting at a pan-European level, rather than country by country.

SuccessFactors can support a broad scope of ESRS S1 workforce disclosures, including:

• ESRS S1-6: Workforce demographics (gender, age, contract type, FTE status)
• ESRS S1-7: Non-employee worker data (contractors, temporary workers)
• ESRS S1-8: Collective bargaining coverage metrics
• ESRS S1-9: Diversity metrics across job levels, management tiers and seniority
• ESRS S1-13: Training hours, skills development and workforce learning metrics
• ESRS S1-16: Remuneration metrics, including equal pay indicators and pay ratios

Zalaris configures People Analytics Stories to support these metrics in a consistent, explainable format for equal pay reporting.

SAP SuccessFactors provides the core system foundation for equal pay reporting through:

• Employee Central for job structures, pay grades and workforce data
• People Analytics (Stories) for gender pay gap analysis, pay ratios and remuneration reporting
• Recruiting and Compensation for pay range alignment and pay decision governance
• Integrated payroll systems for complete remuneration data

SAP positions equal pay and pay transparency as a suite-level capability, meaning reporting works best when key modules are aligned and connected.

ESRS S1-16 defines workforce remuneration metrics, including equal pay indicators, pay ratios and pay transparency measures. While ESRS S1-16 sits within broader sustainability reporting standards, its remuneration metrics align closely with EU equal pay and pay transparency requirements.

SAP SuccessFactors People Analytics Stories aligned to ESRS S1-16 provide a structured way to report on pay equity and remuneration fairness, supporting both internal governance and external disclosure where required.

Yes. Organisations can deliver equal pay reporting using existing SAP SuccessFactors capabilities, particularly Employee Central and People Analytics, supported by integrated payroll data.

Where organisations are not running the full SuccessFactors suite, reporting can still be achieved by extending analytics, integrating payroll systems, or activating additional modules as needed.