Fair Play or Fake Play?

The labor market parties have just agreed on recommendations for how the EU Pay Transparency Directive should be implemented in Denmark. The ball is now in the government’s court, which is expected to present a bill after New Year – and then face a tight deadline if we are to meet the EU’s June deadline. But for Danish companies, the directive should not be seen as the final destination – rather, the beginning of a much larger movement.

Because this is not about law – it’s about people. Demands for fairness and transparency have already moved faster than legislation. More candidates are rejecting employers who are not open about pay. International studies show that up to four out of ten applicants lose interest in a job if the salary level is not stated in the posting. This is not a hypothesis, but a real trend – and it challenges companies’ ability to attract and retain talent. Especially younger generations expect transparency as a given and use it actively as a guiding principle in choosing a workplace.

Thus, the question is no longer whether companies should address fair pay, but how quickly they can adapt to the new reality. Reducing the directive to a compliance exercise is too short-sighted. Future employees and stakeholders expect more than minimum requirements. They demand fairness such as culture, strategy, and leadership discipline. Companies that merely meet the directive’s minimum standards risk being outpaced by those who turn fairness into an active promise – not because they have to, but because they want to.

Fairness as a Competitive Advantage Fair pay is increasingly a matter of business sustainability. When employees understand how their pay is determined – and trust that it is done consistently – both engagement and loyalty increase significantly. Perceived fairness in pay and performance management is a documented key factor for motivation. At the same time, clear and consistent structures provide better cost control and reduce the need for expensive ad hoc adjustments. A company that dares to articulate a clear reward philosophy and stand by it builds a culture where fairness is currency – and that currency yields return in retention, productivity, and a stronger brand.

This places new demands on HR, which can no longer just administer but must step up as the architect of trust. This means building job architectures that ensure comparability across roles, transparent pay frameworks, and developing performance evaluations that are both objective and inclusive. And it requires that leaders have the right tools and language to communicate the reward philosophy credibly. In this light, job offers, bonus plans, and employee benefits are not just appendices, but concrete evidence that the company’s promises of fairness are lived in practice.

Fairness has also entered the broader ESG agenda. Investors and authorities are increasingly scrutinizing pay gaps, executive compensation, and workforce representation. Transparent reward structures are therefore not just an HR concern, but a competitive parameter that affects the company’s brand, credibility, and access to capital. Companies that can document fairness and consistency will be stronger in dialogue with employees, customers, and investors.

From Words to Action The way forward is to integrate fairness into all touchpoints between company and employee. It’s about making the reward philosophy visible: how pay is determined, how performance is rewarded, and how fairness is ensured across functions and groups. It’s about communicating consistently in a language everyone can understand – not just HR specialists. And it’s about showing that fairness is not just a document in a drawer, but a practice felt in everyday life.

Ultimately, fair pay is not just about numbers and rules. It’s about what kind of employer you choose to be. The companies that see fairness as a core value and not a checklist will be strongest in 2026 and beyond. The question is: Will you play Fair Play – or Fake Play?

I’ll be sharing much more on this in the coming weeks on LinkedIn.Already on Monday, I’ll dive deeper into “How to get further ahead on the pay fairness curve,” with the first episode of the article series “Fair Play or Fake Play? – Why fair pay is the new business imperative.”