News

New EU directive encourages employers to hold more systematic salary discussions

16.12.2025

Next year, a new directive on salary transparency (No. 2023/970) will come into force in the European Union, with the aim of reducing and preventing the gender pay gap and strengthening employees' rights to information about their salary level and how it is determined. Although many employers associate the directive primarily with tedious reporting obligations and an increasing administrative burden, it also encourages employers to make their wage policies more systematic and transparent, and thus more motivating for employees. One very practical tool in this process, which also offers opportunities to promote employee-centered management practices, is the regular salary review.

The Minimum Wage Is Half of a Living Wage

09.12.2025

When discussing pay, the issue of the minimum wage as the lowest salary threshold is often raised. This year, the minimum wage in Latvia is €740, which is €40 more than last year. In 2026, it will reach €780 before taxes, and according to data from the State Labour Inspectorate, nearly one-fifth of all employees in Latvia earn the minimum wage. In reality, when policymakers decide on pay thresholds, they should also be talking about a humane wage. In this context, it is essential to analyse what the living wage is in Riga and in the regions. This amount is significantly higher than €740.

61% of Employees Feel Resentment Toward Their Employer - Why Are We Experiencing a Crisis of Trust?

08.12.2025

Society is currently experiencing a deep crisis of trust, which is also affecting workplace relationships. Six out of ten employees feel resentment toward the management of the organization they work for, as well as toward the government in general, according to this year’s Edelman Trust Barometer. Only 75% of employees say they trust their employer to do the right thing. Trust in organizational leaders has declined significantly: 36% of top executives, 49% of middle managers, and 52% of employees do not trust senior leadership. What can employers do to rebuild trust, and what are the consequences when trust is lacking?

Performance Reviews Are Not Exams

12.11.2025

The end of the year is traditionally the time when organizations evaluate work performance and plan employee development for the year ahead. Recent trends show growing dissatisfaction with performance evaluation - both among employers and employees. Employers often see the process as bureaucratic and lacking meaningful impact, while employees feel that the evaluation is unfair. Much of this dissatisfaction stems from a misunderstanding of the purpose of performance reviews and a deeply rooted perception that evaluation is a form of criticism - the belief that “if I’m being evaluated, I must have done something wrong.” But is performance evaluation truly just a stressful administrative task? Could development conversations replace formal assessments and reduce employee anxiety? And what would such a shift mean for employers?

71% of Leaders Are Burned Out - How to Prevent the Whole Team from Burning Out with Them

10.11.2025

Today, more and more people recognize that burnout is a real risk that can affect almost anyone, impacting both mental and physical health. However, conversations about burnout still tend to focus on employees rather than leaders. According to a Deloitte Global Survey, 77% of employees have experienced burnout due to workload and expectations, yet leaders face the same level of risk. The Global Leadership Forecast shows that 71% of leaders worldwide report heightened stress levels - not only due to long working hours and back-to-back meetings, but because of emotional strain, decision fatigue, and structural pressure in organizations. Together, these factors significantly increase the risk of burnout.