Pay Transparency Tests Managers’ Readiness to Act

Pay Transparency Tests Managers’ Readiness to Act

On Sunday, 17 May 2026, Kauppalehti published an article covering the impact of the EU Pay Transparency Directive on Finnish workplaces and managers. The article featured interviews with Seppo’s CEO Mervi Pänkäläinen and EY partner Hannu Tyyskä, with a particular focus on managers’ readiness to engage in more open salary discussions than before. These challenging conversations can — and should — be practiced in advance. SeppoQ was developed specifically for this purpose.

You can read the article (in Finnish) here.

The EU Pay Transparency Directive Increases Transparency Requirements

The EU Pay Transparency Directive gives employees a statutory right to obtain information on how their salary compares to the average pay levels of employees doing the same or equivalent work, broken down by gender.

“Even today, equal pay must be paid for equal work unless there is an acceptable reason for the difference, but the directive expands employees’ right to access that information,” says Hannu Tyyskä, partner at EY.

This means managers must be able to justify pay decisions more transparently than before.

National implementation of the directive is progressing: according to current information, the government’s proposal will be submitted to Parliament during Midsummer week.

Practice Makes a Difference in Pay Discussions

To help managers prepare for challenging conversations, Seppo has developed an AI-powered simulation solution together with EY’s experts. The training is delivered on the SeppoQ platform through realistic scenarios that mirror real-life situations.

“We have helped ensure that the interpretation of the directive within the simulations is as accurate as it can be at this point in time,” Tyyskä says of the solution’s content.

A scenario might begin, for example, with a female employee asking her manager why male colleagues in the same role receive higher pay. Participants respond in their own words — under realistic pressure, but in an environment where mistakes are still a learning opportunity.

SeppoQ progresses in three stages.

First, the participant’s baseline level is assessed, creating an honest picture of the current situation.

In the second phase, participants practice while AI provides feedback and tracks progress across knowledge, communication, and decision-making skills.

In the third phase, actual readiness is measured: retakes are no longer possible, and the scenarios become more demanding.

Leadership can view results by team, role, and business unit.

“Practice is important in every organization — especially in sectors where managers have not received separate HR training,” says Seppo CEO Mervi Pänkäläinen.

AI Supports the Assessment Process

In simulation exercises, AI analyzes every response: does the manager understand the sensitivity of the situation, can they justify decisions consistently, and how do they communicate under pressure?

The assessment is not based on generic AI. Instead, it relies on a framework and assessment rubrics developed through Seppo’s fourteen years of pedagogical experience, enabling organizations to identify operational readiness in authentic workplace situations.

“The resulting insights are based on actual behavior in practical situations, not self-assessments,” Pänkäläinen emphasizes.

Giving Leadership Visibility into Workforce Readiness

SeppoQ is not only a training tool for managers and employees. It also provides organizational leadership with a comprehensive view of how prepared people truly are to act in real-world situations.

The analysis objectively highlights where operational readiness is strong, where uncertainty exists, and where additional support is needed. Training completion and self-confidence alone do not show how someone will perform under pressure.

“The goal is to help organizations identify potential risk areas before they become visible in everyday situations, employee experience, or business results,” says Pänkäläinen.

Would you like to discuss how your organization can prepare managers for the realities of pay transparency? Book a demo