Hospitality has always been a people-first industry, yet today in Ireland it is operating under unprecedented strain. Persistent labour shortages, rising costs and intense competition for talent means employers are being scrutinised not just on what they pay, but on how openly and fairly they talk about pay.

Against this backdrop, pay transparency is moving from a regulatory concern to a trust issue. While much of the current conversation is shaped by the upcoming EU Pay Transparency Directive, expectations around fairness and openness are already rising, regardless of when the legislation formally takes effect. For hospitality employers, the real question is not simply how to comply, but how to use transparency to strengthen trust in a sector where people and culture are critical to success.

Insights from the SD Worx HR and Payroll Pulse Survey 2026 underline just how central this issue has become, with insights outlined in our free Pay Transparency eBook. The survey, conducted by market research agency iVox, questioned 1,000 workers and 301 employers in the Republic of Ireland, and has shed light on some of the common and increasing concerns across the hospitality sector, particularly in terms of pay transparency, and how it influences whether they stay, leave, or join an organisation.

Pay is one of hospitality’s biggest HR challenges

In hospitality, pay, trust and communication are tightly linked. When margins are under pressure and turnover is high, employees want reassurance that decisions about pay are fair, consistent and well thought through. Transparency becomes the bridge between business realities and employee expectations.

This matters particularly in a sector characterised by diverse roles, variable hours, seasonal work and high mobility. Questions around starting pay, progression, pay differences between locations, or how experience and tenure are rewarded all shape how fair an organisation is perceived to be. When answers are unclear or inconsistent, trust can erode quickly, even where pay levels are competitive.

“Pay transparency is often framed as a compliance challenge, but for hospitality employers it is a practical business opportunity. When people understand how pay works - how decisions are made, how progression happens - it builds trust. In a sector where attracting and keeping talent is critical, that trust becomes a real competitive advantage.”
-Eimear Byrne, Managing Director SD Worx Ireland

Employees are ready for more openness

The SD Worx HR and Payroll Pulse research further shows just how influential pay transparency has become for employees in Ireland. Four out of five hospitality professionals surveyed say transparency around pay influences their decision to stay with or join an organisation. More than a quarter say having clear information about pay levels and fairness is more important than other elements of pay and reward.

At the same time, employee perceptions reveal uncertainty. Around a quarter believe there is a gender pay gap in their organisation. While most believe they are paid fairly, fewer than half feel their employer is actively committed to closing pay gaps.

This points less to a pay problem and more to a visibility problem. Employees are not necessarily questioning intent, but they are questioning how pay decisions are made, explained and monitored. Where transparency is lacking, confidence weakens.

Employers feel confident, but perception gaps remain

From an employer perspective, confidence is relatively high. According to SD Worx research, two thirds of hospitality employers say they pay employees fairly, and many acknowledge gender pay gaps and review their data to address them.

However, confidence does not always translate into credibility. When employees do not understand how pay increases are determined, how progression works or how gaps are tracked, even robust pay practices can feel opaque. This is where pay transparency stops being a compliance exercise and becomes a leadership issue.

Lessons from gender pay gap reporting in Ireland

Ireland’s experience with gender pay gap reporting offers a useful reference point. Since 2025, employers with 50 or more employees are required to publish annual data on differences in average pay between men and women, along with an explanation of the drivers behind any gaps and actions being taken.

While reporting alone does not solve inequality, it has prompted many organisations to look more closely at their data, challenge assumptions, and start conversations that were previously avoided. In many cases, reported gaps reflect structural issues such as progression pathways, part-time work or occupational segregation rather than unequal pay for equal work.

The EU Pay Transparency Directive is coming, but awareness is uneven

Expectations around transparency are clearly shifting. Almost two thirds of hospitality employees expect pay transparency to increase in the coming years, yet only a third are aware of the EU Pay Transparency Directive itself.

Employers in the hospitality sector show higher awareness and readiness. More than half say they are familiar with the directive, and many believe they already have the foundations in place to comply. However, the risk is assuming compliance alone will be enough.

It is clear, however, that transparency is not just about reporting or data readiness, but instead is about how pay information is shared, explained and experienced, from recruitment and onboarding to performance reviews and everyday conversations.

From regulation to opportunity

At SD Worx, we see pay transparency not as a regulatory hurdle, but as an opportunity for hospitality employers to strengthen trust at a time when it is under pressure. With over 80 years of HR and payroll expertise across Europe and almost thirty in Ireland alone, SD Worx supports organisations in turning complex regulation and data into clear, human conversations about fairness and reward.

Hospitality already has a strong foundation to build on. Most employers say their managers are comfortable discussing pay with employees. The challenge now is providing the structure, data and shared language that make those conversations consistent and credible.

For a sector built on people and experience, pay transparency can become a differentiator rather than a risk. The real choice for hospitality employers is whether transparency is shaped deliberately as part of their culture or left to be driven by regulation alone.

Download our free guide to Pay Transparency in Ireland here!

Contact details

Sales at SD Worx

 01 272 4600
 mp.sales@sdworx.com
Web www.sdworx.ie