Transparent and fair pay systems are becoming increasingly important, not only due to legal changes but also because of their impact on organizational culture. Companies strive to systematically strengthen employee trust, reduce business risks, and build a strong employer brand.
This year, the focus for HR professionals is the EU Directive on Pay Transparency, which comes into effect soon. The goal of the Pay Transparency Directive is to reduce non-transparent practices that support inequalities, particularly those between male and female wages, and to ensure clear, comparable, and measurable pay and promotion criteria. While many companies are still preparing for the new requirements, JANAF is among the leaders when it comes to adopting best practices. To prepare for legal changes and requirements on pay equality, JANAF conducted an independent analysis of their pay system last year, meeting the certification criteria based on the IQA method, which led them to receive the Inc.Q Equal Pay certificate in the Leader category. The analysis revealed a pay gap of just 0.2%, which is statistically insignificant and well below the legal 5%.
In this interview, Nada Zovko Radanović, Head of Human Resources at JANAF, shared insights into why they chose to get certified and how they maintain transparency in their operations.
Nada Zovko Radanović
JANAF d.d. is a strategically important energy company with a key role in ensuring stable and secure oil and petroleum product supplies to Croatia, the EU, and neighboring countries. As a company of special importance, we operate in a highly regulated and complex environment, with a high level of responsibility towards all stakeholders as an integral part of our business. Such a context requires that our internal management systems, especially human resource management systems, not only be effective and compliant with regulations but also exceptionally consistent, fair, transparent, and sustainable in the long term.
The human resources department at JANAF has a clearly defined strategic role and actively participates in shaping organizational culture, reward systems, competency development, talent management, and strengthening overall organizational resilience. HR goes beyond traditional administrative functions and is positioned as a business partner to the Board and management. As the head of HR at JANAF, I am responsible for shaping and improving policies and processes that enable efficient and transparent people management, while ensuring compliance with regulatory requirements and the company’s long-term goals.
At JANAF, we have approached pay transparency and fairness gradually and systematically, with the goal of creating a system that is clear and understandable to employees, while also being comprehensive enough to consider the complexity of jobs and different levels of responsibility. We introduced structured pay grades, clear advancement criteria, and frameworks for determining salaries, taking into account internal fairness, market competitiveness, and sustainability. We do not view transparency as disclosing individual salary amounts, but rather as clearly explaining how the system works, the criteria it is based on, and the logic behind decisions.
Balancing pay transparency with the protection of employees’ privacy is one of the key professional and ethical challenges in HR. At JANAF, we start from the clear principle that employees have the right to understand the principles, criteria, and mechanisms that affect the amount of their pay, while also having the right to protect their personal and financial data.
Therefore, we ensure a high level of transparency when it comes to the methodology, structure, and criteria for determining pay. Employees are familiar with pay grades, ranges, competency requirements, levels of responsibility, expected results, and opportunities for professional development and advancement. At the same time, individual salary amounts are treated as strictly confidential data, in accordance with applicable data protection regulations.
We built our evaluation systems to be objective and gender-neutral, relying on clearly defined and comparable criteria such as job complexity, levels of responsibility and independence, required knowledge, skills, and competencies, specific working conditions, and impact on results.
We place focus on identifying and eliminating any direct or indirect gender biases, including those that may arise from historical patterns, organizational habits, or unconscious assumptions. Regular internal analyses, as well as independent external verifications, allow us to continuously reassess and improve the system.
Nada Zovko Radanović & Erika Sinčić Ružić (JANAF)
One of the key measures is a strictly structured and formalized process for determining and changing pay. Every new hire, promotion, or job change is reviewed for compliance with the appropriate pay grade and defined range. Any deviations from the standard range must be clearly justified, documented, and approved at a higher level, significantly reducing the room for subjective or insufficiently justified decisions.
We decided to conduct a gender pay gap analysis and enter the certification process because we wanted to have a clear, objective picture of the situation and confirm that our systems are fair and transparent. As a company of high importance, we are aware of our responsibility to set an example of responsible management, and at the same time, we wanted to proactively prepare for the upcoming EU Pay Transparency Directive. We viewed certification from the outset as a developmental tool and an opportunity for further improvement, as it allows for an independent review of our practices and a clearer understanding of where we excel and where we can still grow.
The analysis process allowed us to examine in detail the actual impact of variables such as age and work experience, education level, type of function, and level of responsibility on salary formation. Although we already had structured systems in place, certification further increased the level of analytical clarity and enabled us to make data-driven decisions, which strengthened our decision quality and the long-term stability of the system.
The greatest value for us was the confirmation that the principles of fairness, equality, and objectivity are truly embedded in our everyday work practices. This result further strengthens employee trust in the reward system and reassures the Board that HR is a reliable and relevant partner.
The INC.Q Equal Pay certificate has a multiple and long-term impact. Externally, it further strengthens JANAF’s reputation as a responsible and transparent employer that manages human resources in accordance with the highest standards. Internally, the certificate confirms and further strengthens a culture of fairness, responsibility, and professional integrity, sending a clear message to employees that equality is not taken for granted, but systematically measured, verified, and proven.
The message would be that readiness is not measured by the perfection of existing systems, but by openness and willingness to reassess them. A gender pay gap analysis is not a threat, but a powerful management and development tool. Companies that begin this process on time not only reduce regulatory and reputational risks but also build a stronger organizational culture, employee trust, and long-term business sustainability.
JANAF’s example shows that pay equality is not just a regulatory obligation, but a strategic decision that strengthens organizational culture, employee trust, and long-term business sustainability. If you would like to see how such pay systems can be applied in your organization and gain insight into the certification criteria and process, feel free to contact us.
