Fair and transparent pay is no longer just a regulatory requirement; it has become a cornerstone of employee trust and motivation, as well as the foundation of a strong organizational culture. With the upcoming implementation of the new EU Pay Transparency Directive soon, companies are facing an important question: “How can we ensure objective, clear, and gender-neutral criteria for compensation and career progression?”
The Financial Agency chose to act proactively. Following the announcement of a new pay system, they conducted an independent gender pay gap analysis, met the IQA methodology criteria, and obtained the Inc.Q Equal Pay certificate.
In a conversation with Ivana Cvančić, Human Resources Director at the Financial Agency, we learned how their pay system has been improved, what pay equity certification means for their employees, and how a transparent approach strengthens both trust and the organization’s reputation.
Ivana Cvančić (Fina)
Fina is an organization with a long-standing tradition. We have been present in the Croatian economic system for over six decades. Initially established as an institution responsible for transactional payment operations, we have evolved over the years and today play a much broader role. As a state-owned company, we are obliged to carry out legally mandated public functions, all while operating in the open market. This puts us in a unique position, balancing responsibility with market competitiveness.
In this context, the role of Human resources departements is extremely important. HR at Fina is not just administrative; it is a highly operational function. We initiate changes, provide guidance, and support management and employees in all matters that are important for their work, development, and engagement.
One of the biggest challenges we face is attracting and retaining talent, particularly in a highly competitive labor market and in the context of evolving expectations from younger generations of employees. In recent years, our turnover rate approached 10%, but through systematic measures, we reduced it to below 5% in 2025.
The introduction of a new compensation system and stronger positioning of Fina as an employer of choice have certainly contributed to this outcome. At the same time, we are implementing a new HR management application, which will enable further development of our performance management system and allow for a fairer evaluation of our employees’ contributions.
Transparency and fairness in the compensation system have been fundamental principles in the development of our HR function from the very beginning. The most significant step towards it was the implementation of the new Collective Agreement on March 1, 2024, which also introduced a new pay system.
This new system clearly defines the value of each role according to the Job Catalog of the Financial Agency. It is structured through pay grades with predetermined salary ranges, from minimum to maximum. This model ensures that pay consistently reflects the complexity, responsibility, and specific requirements of each position, as well as its place within the organization.
In addition to more clarity, the new system provides more flexibility. It allows for horizontal progression within the same role, as well as vertical progression through levels of responsibility. This gives employees a transparent perspective on their development and provides the organization with a stronger framework for talent management.
At the same time, the new system eliminated inequalities present in the previous model, where pay was dependent on regional point values, resulting in different salaries for the same roles. The new approach ensures consistency and a fairer approach.
Another step toward transparency was publishing the Job Catalog on our intranet, with defined salary ranges. Unlike the previous system, which only showed point values, the new catalog provides exact figures, significantly improving understanding and trust in the system.
We balance transparency with privacy by clearly distinguishing between data that is publicly available within the organization and information that remains strictly controlled. The system’s transparency is ensured by publishing salary ranges for each position on the intranet, while individual employee salaries are not disclosed, consistently protecting privacy.
Base salary information is handled exclusively by HR and finance units for administrative purposes and payroll processing. Managers have access to the salaries of employees within their teams only for effective team management and responsibility-related purposes.
Throughout these processes, principles of confidentiality and data protection are strictly applied. Salary information is not shared with third parties outside of Fina, except where that information is legally required or with the employee’s explicit consent.
Ivana Cvančić, Vinka Ilak, Karlo Seleši (Fina), Dijana Kobas Dešković (Inc.Q)
Implementing the new pay system required precisely defining the true value of each role. A key step was developing a job evaluation methodology based on clear and measurable criteria.
Evaluation is based on job complexity, level of responsibility, required competencies, and the role’s impact on business processes. This approach ensures that positions are assessed objectively based on their content and contribution to the organization, rather than on subjective employee characteristics.
By establishing clear and consistent criteria, we created a framework that ensures fairness and impartiality in assessing job value. This lays the foundation for a work culture where respect, collaboration, and equal opportunities are the standard.
A system based on objective criteria is naturally gender-neutral, as it evaluates the job rather than the individual. This approach enables talent development and professional growth for all employees, regardless of their personal characteristics.
With the new pay system introduced in 2024, we implemented pay grades with clear salary ranges. Job evaluations were conducted analytically, combining the Hay methodology with Fina’s internal parameters, to ensure greater objectivity, transparency, and fairness in assigning positions to pay grades.
A concrete example concerns positions within our business network. Before our current system, salaries for the same role could vary depending on regional point values tied to revenue at each location, which is a factor beyond employees’ control. Today’s system eliminated this practice, standardizing salaries for the same roles regardless of location, ensuring consistency and fairness in compensation.
For many years, Fina has cultivated a culture of respect and non-discrimination, supported by internal policies protecting employees from unequal treatment. Principles of socially responsible business are used through employing people with disabilities, collaborating with academia, providing scholarships to students, and hiring them in local communities.
Conducting a gender pay gap analysis and pursuing certification was a logical next step. We wanted to systematically and measurably verify that our pay system truly reflects equality and fairness, and to identify areas for further improvement.
Our goal is to ensure that salaries and rewards are based solely on competencies, responsibilities, and actual contributions, with complete gender equality. The long-term goal is to achieve a 1:1 ratio for equal jobs and equal contributions, clearly demonstrating that equality principles are consistently applied in practice.
The Inc.Q Equal Pay analysis and certification process provided a detailed, structured view of our pay and rewards system. For the first time, we examined salary data, rewards, and potential gender gaps for each position in a methodologically sound way.
Beyond quantitative indicators, the analysis offered a qualitative assessment of existing policies and procedures, and clear guidance on areas requiring improvement, particularly performance management, talent development, promotion systems, and the need for further diversity and further selection process development.
The results showed an adjustable gender pay gap of 4.6%, within the EU Pay Transparency Directive threshold of below 5%. This confirms that our system’s foundations are solid, while also highlighting areas for continued improvement. The action plan resulting from the certification provided clear direction, including adopting a Diversity, Equity, and Inclusion (DEI) Policy.
Confirming a gender pay gap below 5% confirms that equality and fair compensation principles are genuinely embedded in our system, not just declared. This outcome reflects long-term, systematic efforts to build an organizational culture that provides equal opportunities for development and advancement, regardless of gender or other personal characteristics.
The value lies not only in regulatory compliance but also in confirming that our mechanisms are objective and functional. Pay equity is a key requirement for sustainable business, employee trust, and long-term organizational stability.
The Inc.Q Equal Pay certificate in the Leader category is additional confirmation that our equality and fair compensation policies are consistently applied and measurable. We view this result not as a final stage, but as an ongoing commitment to maintain and enhance the highest standards.
The Inc.Q Equal Pay certificate positively impacts both our reputation and internal culture. It provides independent validation that equality and fairness are consistently embedded in our pay and rewards system, strengthening trust within the organization.
Externally, it positions Fina as a socially responsible institution toward business partners and a stable, desirable employer in the labor market. This recognition carries reputational value and also serves as an internal mark to employees that established standards are actively applied.
Investing in diversity, equal rights, and equal treatment is not merely a regulatory obligation; it is a strategic decision shaping the organization’s development. A system built on fairness and equal opportunities creates a stable and effective organizational culture.
Satisfied employees contribute more, while diverse perspectives foster innovation, process improvement, and better business solutions. This combination represents a serious long-term competitive advantage.
Each company selects its own management model, but a business policy that does not tolerate bias and systematically promotes fairness and equality helps, in the long run, helps build stakeholder trust, ensure business sustainability, and stabilize the market.
A fair and transparent pay system is much more than an administrative or regulatory obligation. Transparency is used as a strategic tool to build a stable, sustainable, and competitive organization. Only when the criteria are clear and consistently applied does equality become practice, and employee trust becomes stronger.
Such an approach contributes not only to internal satisfaction and engagement but also to the organization’s reputation in the labor market. Ultimately, investing in pay equity and systematic pay management is not a short-term regulatory adjustment, but a long-term investment in people, organizational resilience, and sustainable growth.
