How to Set a Fair Pay Strategy for 2026

The Key Points:  

Fair pay goes beyond equal pay. It focuses on compensating people fairly for the impact they make.  

Transparency isn’t just legal—it helps attract talent and build trust.  

To prepare:  
• Use salary guides to benchmark pay  
• Set clear salary bands  
• Conduct pay audits to find gaps  
• Train managers to discuss pay openly  

What Does Fair Pay Really Mean? And Why Does It Matter Now?  

Fair pay and transparency are essential for a stronger, competitive workplace.  

Let’s talk about fair pay, and why it matters now more than ever.  

Fair pay isn’t just about equal pay. It goes further. It means recognising the value each person brings and making sure they are paid appropriately, regardless of gender, background, or job title.  

Pay transparency is gaining momentum worldwide, driven by a growing demand for fairness and accountability in the workplace. The EU’s upcoming directive, set to take effect by June 2026, marks a significant regulatory shift but is just one part of a broader global movement. From North America to the Middle East, businesses, policymakers and employees are pushing for greater clarity around pay. Beyond compliance, embracing transparency helps organisations attract top talent, build trust and strengthen their employer brand.

The takeaway? In today’s competitive market, equitable compensation isn’t a “nice to have”—it’s a must. It’s essential for attracting and retaining top talent, staying compliant with new regulations, and building trust both inside and outside your business.  

How to Know if Your Pay Structure Is Fair  

If you're wondering whether your company’s pay structure is actually fair, a great place to start is by comparing your salary ranges to the market. That's where salary guides come in. Whether you’re hiring, promoting, or simply reviewing pay practices, a reliable salary guide can show you if your structure is competitive and equitable.  

Signs Your Pay May Be Off  

Before diving into the data, consider these signs that your pay practices may need a closer look:  

You're unsure if current salaries align with market rates  

Employees are requesting raises- and receiving them inconsistently  

There's no standardised approach to setting or adjusting pay  

Promotions occur, but salary increases don't follow suit  

If any of this sounds familiar, it's time to benchmark your pay structure.  

Why Use a Salary Guide?  

Salary guides are one of the simplest and most accessible tools for evaluating fairness. Here's how they help:  

1. Benchmark salaries by role, industry, and location  
2. Spot inconsistencies between your pay and the broader market  
3. Guide decision-making around raises, new hires, and promotions  
4. Support transparency—you’ll have data to explain how pay is determined  

These tools provide a useful benchmark to complement your internal pay data or guide early-stage decisions.  

Not sure where to start? The UAE Michael Page Salary Guide provides up-to-date insights by sector, role and region. Perfect for reviewing pay levels or planning your next hire, they help you make informed and competitive decisions.  

How to Build a Fair & Competitive Pay Strategy  

Creating a fair pay strategy is essential for attracting and retaining talent while ensuring equity and compliance within your company. This involves several key steps and actionable strategies:  

1. Conduct a Pay Audit  

Start by performing a comprehensive pay audit to identify any disparities or inconsistencies within your current salary structure. This includes:  

• Collecting and analysing compensation data by role, level, gender, and other relevant factors  
• Identifying pay gaps or anomalies that could lead to unfairness or legal risk  
• Using the audit results to inform corrective actions and realignment of pay bands  

Regular pay audits not only highlight where adjustments are needed but also demonstrate your organisation’s commitment to fairness and transparency.  

2. Use Salary Benchmarking to Stay Competitive  

Rely on up-to-date market data to set salaries that reflect current trends. The labour market evolves rapidly; outdated figures risk either overpaying or losing talent to competitors. Use trusted resources like our Michael Page Salary Guide to:  

• Compare your salary bands against industry standards  
• Adjust pay ranges to stay competitive and attractive to candidates  
• Ensure your compensation packages align with market expectations  

3. Build Clear Salary Bands and Transparent Job Ads  

Define salary bands clearly by job function and seniority level to establish consistency and fairness across roles.  

• Publish salary ranges upfront in job postings to attract suitable candidates and manage expectations early  
• Communicate pay bands internally to ensure managers and HR teams have a shared understanding of compensation limits  
• Use salary bands as a foundation for equitable pay decisions and promotions  

4. Develop a Fair Pay Framework  

Create a structured framework that guides all compensation decisions. This should include:  

• Clear criteria for setting pay ranges (e.g., skills, experience, performance)  
• Processes for addressing pay inequities and appeals  
• Guidelines for rewarding exceptional performance fairly without creating bias  

A strong pay framework helps ensure consistency, fairness, and transparency across your organisation. 

How to Address Employee Concerns About Pay Fairness  

Talking about pay can be challenging, and it’s something many managers might struggle with if they’re not prepared. But these conversations are also a chance to build trust. Employees want to know they’re being paid fairly—and they’re not shy about asking the hard questions. That’s why it’s so important to make sure your managers are prepared with clear, straightforward messaging.  

Common Questions  

Here are a few questions managers should expect—and how to respond with confidence:  

“Why does my colleague make more than I do?”  
“I understand your concern. Pay decisions are based on role, experience, performance, and market data—not just job title. Let’s take a look at your own development path together.”  

“Am I being underpaid?”  
“We regularly benchmark salaries to ensure they’re competitive and fair. If you have specific concerns, I’m happy to bring them to HR for review.”  

“How are raises and bonuses decided?”  
“They’re based on both individual performance and company-wide guidelines. We aim to recognise contributions consistently across the board.”  

Transparent Communication  

Managers are your first line of communication, so it’s important they’re well equipped. Help them understand how pay decisions are made and give them the tools to explain those decisions with confidence. Documenting the reasons behind pay, such as salary bands and market data, helps reinforce fairness.  

Just as importantly, make sure your messages are aligned. Mixed signals can quickly undo the trust you’ve built. Keep your internal narrative clear, consistent and grounded in data.  

How to Respond to the Hard Questions  

When an employee raises a serious concern, act immediately:  

Investigate the claim thoroughly and without bias.  

Show audit data where possible to back up decisions.  

Take action if you discover disparities—fixing issues quickly reinforces your commitment to fairness.  

Pay transparency isn’t just about numbers. It’s about open communication, accountability, and building trust. When you handle concerns thoughtfully, you send a clear message: fairness matters here.  

Take Action: Make Fair Pay Your Hiring Advantage  

Fair pay isn’t just a box to check. It’s a smart way to attract and keep top talent.  

In today’s market, transparency matters. Offering clear and competitive pay shows your people they’re valued and helps you stay ahead of changing regulations.  

Start building a fair, future-proof pay strategy today. Download the UAE Michael Page Salary Guide —and if you’re hiring, let’s talk. Got recruitment needs? Contact us today.