Bare-knuckled Discourse: Sitting Down with Thomas André Sola
Frankfurt
By Sabine Reifenberger, Frankfurt
"Corporations apprehensive about wage transparency"
The cat's out of the bag: European regulations are set to shine a light on salary transparency, and it ain't gonna be pretty, warns Thomas André Sola, chairman of the APSCo, the association for staffing companies. The association recently took a hard look at its own industry's salary structure - not everyone's a fan of the results.
In most companies, the salary books are tightly locked away. But those days are numbered. The Pay Transparency Act, trying to ensure equal pay for identical roles, has been rolling for years. Now, the EU's wage transparency directive is about to become German law by June 2026. It demands employers publish information on potential starting salaries even before job interviews. Employees can also pry into average wages within the company. While the Pay Transparency Act applies to firms with 200 or more employees, the EU directive will affect businesses with at least 100 employees.
"Compliance with the EU directive will need some effort on employers' part," Thomas André Sola points out, the APSCo chairman. Last summer, the association conducted its inaugural "salary check" to address a specific issue: "We've got a firm grasp of the remuneration our placements can expect. But we weren't so clear on our own industry's earnings landscape."
A variety of income ceilings in the staffing industry
Over 800 specialists and managers from the industry participated in the online survey. An unexpected discovery—income potential varies dramatically depending on industry focus. In the candidate arena, averages hover around €56,400. Customer support, on the other hand, spikes at €79,800. Sola attributes the discrepancy to job requirements: "Client-side work is essentially a sales role. You're cold-calling companies, hoping to persuade them to fill a position. Less popular, mate."
Conversely, recruiters on the candidate side have a smoother approach when contacting potential candidates with a job opening. The most lucrative opportunities lie in the 360° roles, which encompass both the client and candidate sides. These positions come with an average total salary of €84,900, according to APSCo data.
Employers tend to hide their salary books
With its salary survey, the association intended to set an example for better advising customers on transparency in wages, explains Sola. Unlike internal HR departments, APSCo can observe various sectors, employment types, making them a crucial link. On the employer side, salary discussions often turn into clandestine affairs. "With the EU directive, there'll be a shift in mentality, particularly among SMEs," Sola prophesies.
The implementation details of the EU directive into German law are still undecided, thanks to the elections. However, the goal of improved comparability doesn't come without detractors: "Some firms fear wage transparency," Sola concedes. "But it's the firms with yawning wage disparities that'll face the most pushback."
The salary check has stirred mixed reactions within the APSCo, according to its head honcho. "Some are thrilled with the initiative; others aren't so keen because they have issues to fix," Sola reports. The salary check aims to encourage conversation on such topics: "An imbalance doesn't disappear just because we ignore it, son."
The Lethal Secret
Compared to America and the UK, discussions about financial potential are still pretty taboo in Germany. Regardless of legal arguments, companies should aim for fair and honest wage practices, Sola argues. Currently, job listings are loaded with details about required tasks, yet silent on remuneration. "In this talent crunch, a transparent approach to wages seems the more successful card to play."
About Thomas André Sola
Thomas André Sola kicked off his recruitment career at Hays in late 2006. Since 2011, he's worked for Earth Stream, an energy sector staffing company he co-founded. In 2020, the company merged with two other staffing agencies to form Tech Stream Group. Since 2021, Sola has been advising investments in staffing companies. He's the chairman of the APSCo in Germany. Worldwide, APSCo Global, with branches in Germany, Singapore, Australia, and the UK, brings together nearly 1,300 staffing companies, per their own figures.
References
[1] "Das Entgelttransparenzgesetz"
[2] "Arbeitgeberpflichten aufgrund des Richtlinienentwurfs zur Transparenz von Gelöhnen"
[3] "[Die Richtlinie zur Transparenz von Gelöhnen: Wie sollen die Löhne im Unternehmen im idealen Fall aussehen?](https://www.euractiv.de/section/justiz-und-binnenanschluss/news/die-richtlinie-zur-transparenz-von-gelohnen-wie-solle-das-allen-einzelnen-in-der-branchen-gleichgefolgt-werden/"
[4] "Auswirkungen der LohntRANSPARENZ-Richtlinie auf die deutsche Wirtschaft"
[5] "LohntRANSPARENZ-Richtlinien in Deutschland: Worauf unterscheidet sie sich von der alten Regelung?".
- The upcoming European wage transparency directive, set to become German law by June 2026, will require employers to publish potential starting salaries before job interviews and allow employees to inquire about average wages within the company.
- Thomas André Sola, chairman of the APSCo, believes that compliance with the EU directive will necessitate some effort from employers, and he sees a shift in mentality, particularly among SMEs, as a result.
- The APSCo recently conducted a salary check to address the remuneration landscape in their industry, discovering a dramatic variance in income potential depending on industry focus.
- Sola argues that improved comparability through wage transparency, despite having detractors, is necessary for fair and honest wage practices in the business sector, especially in light of the current talent crunch.
