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More talent and less turnover: The ROI of implementing equality policies in SMEs

Published on
November 30, 2025
TABLE OF CONTENT
Having equality policies in place not only protects companies from potential sanctions, but can also lead to improved productivity and become the best hook for attracting talent.

Madrid, October 24, 2025.

Turning necessity into virtue. Since March 7, 2022, when Royal Decree-Law 6/2019 established the obligation for all Spanish companies with more than 50 employees to implement equality policies, more than half of the goal has already been achieved.

According to data from the Central Business Directory (DIRCE) and REGCON, as of February 2024 around 15,000 plans had been registered, approximately 60% of the 25,200 companies estimated to be subject to the regulation.

This acceleration has been driven mainly by the risk of potential sanctions, which can range from €626 to €6,250 in serious cases, and from €6,251 up to €187,515 for very serious cases. But beyond the financial consequences, these policies have proven effective in improving both the image and productivity of the companies that implement them.

“Equality policies impact both sides of the balance sheet,” says Emmanuel Djengue, CEO of Kaatch.co, a leading HR as a Service platform.

“On the revenue side, they attract talent and strengthen company engagement, which in turn drives innovation and productivity. On the cost side, they reduce turnover, absenteeism, internal conflicts, and sanctions.”

Properly executed equality is not a compliance cost, “but talent management driven by data,” explains Álvaro Jiménez, COO and co-founder of Kaatch.co.

“A good equality plan must be a project with clear metrics and a timeline, built on a rigorous diagnosis based on data, objectives, workforce structure, and processes for recruitment, compensation and potential pay gaps, promotion and career development, work-life balance and flexibility, work climate, prevention of harassment, and, of course, corporate communication and culture.”

Why an HR Professional Is Essential

When an equality plan is comprehensive, participatory, backed by management commitment, and includes concrete measures in key areas such as recruitment, promotion, work-life balance, and non-sexist communication, “employees feel it on three levels: work climate, career, and results,” says Jiménez.

“This has a positive impact on company productivity because teams are more engaged with achieving goals, turnover decreases thanks to career development plans, and therefore talent retention improves, something that inevitably shows up in business performance and growth.”

Taking equality seriously “means doing properly and on time what the law requires and what the business needs,” explains the CEO of Kaatch.co. In small companies, this challenge often falls to the general manager, “and while they may do a decent job, we often see the need for a specialized profile to bring the necessary technical expertise,” notes Djengue.

An equality plan in Spain is not just good intentions; it’s a formal policy that must meet a series of legal and technical requirements involving method, data, and negotiation. “When handled by a manager alone, it often ends up as a hybrid model supported by an internal or external HR professional plus a negotiating committee representing employees to ensure the plan is successful,” says the Kaatch.co expert.

Moreover, not just any HR profile will do. “Designing, negotiating, registering, and implementing an equality plan that complies with the law, reduces pay gaps, and improves business indicators requires a specific professional, someone experienced and capable of leading diagnosis, pay audits, job evaluations, negotiation, and change management. Without that role, the plan may stall or even backfire,” warns Jiménez.

“If the team perceives the plan as mere window dressing, trust in management will erode, and employees could become disengaged from the company,” cautions the CEO of Kaatch.co.

A plan designed only to “check the box” exposes the company to legal risk, business loss, and reputational damage. A well-negotiated, registered, and operational plan avoids sanctions and protects the bottom line.

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More talent and less turnover: The ROI of implementing equality policies in SMEs

How equality policies protect companies from potential sanctions, and lead to improved productivity.

Category
Newsroom
Date
October 24, 2025
Having equality policies in place not only protects companies from potential sanctions, but can also lead to improved productivity and become the best hook for attracting talent.

Madrid, October 24, 2025.

Turning necessity into virtue. Since March 7, 2022, when Royal Decree-Law 6/2019 established the obligation for all Spanish companies with more than 50 employees to implement equality policies, more than half of the goal has already been achieved.

According to data from the Central Business Directory (DIRCE) and REGCON, as of February 2024 around 15,000 plans had been registered, approximately 60% of the 25,200 companies estimated to be subject to the regulation.

This acceleration has been driven mainly by the risk of potential sanctions, which can range from €626 to €6,250 in serious cases, and from €6,251 up to €187,515 for very serious cases. But beyond the financial consequences, these policies have proven effective in improving both the image and productivity of the companies that implement them.

“Equality policies impact both sides of the balance sheet,” says Emmanuel Djengue, CEO of Kaatch.co, a leading HR as a Service platform.

“On the revenue side, they attract talent and strengthen company engagement, which in turn drives innovation and productivity. On the cost side, they reduce turnover, absenteeism, internal conflicts, and sanctions.”

Properly executed equality is not a compliance cost, “but talent management driven by data,” explains Álvaro Jiménez, COO and co-founder of Kaatch.co.

“A good equality plan must be a project with clear metrics and a timeline, built on a rigorous diagnosis based on data, objectives, workforce structure, and processes for recruitment, compensation and potential pay gaps, promotion and career development, work-life balance and flexibility, work climate, prevention of harassment, and, of course, corporate communication and culture.”

Why an HR Professional Is Essential

When an equality plan is comprehensive, participatory, backed by management commitment, and includes concrete measures in key areas such as recruitment, promotion, work-life balance, and non-sexist communication, “employees feel it on three levels: work climate, career, and results,” says Jiménez.

“This has a positive impact on company productivity because teams are more engaged with achieving goals, turnover decreases thanks to career development plans, and therefore talent retention improves, something that inevitably shows up in business performance and growth.”

Taking equality seriously “means doing properly and on time what the law requires and what the business needs,” explains the CEO of Kaatch.co. In small companies, this challenge often falls to the general manager, “and while they may do a decent job, we often see the need for a specialized profile to bring the necessary technical expertise,” notes Djengue.

An equality plan in Spain is not just good intentions; it’s a formal policy that must meet a series of legal and technical requirements involving method, data, and negotiation. “When handled by a manager alone, it often ends up as a hybrid model supported by an internal or external HR professional plus a negotiating committee representing employees to ensure the plan is successful,” says the Kaatch.co expert.

Moreover, not just any HR profile will do. “Designing, negotiating, registering, and implementing an equality plan that complies with the law, reduces pay gaps, and improves business indicators requires a specific professional, someone experienced and capable of leading diagnosis, pay audits, job evaluations, negotiation, and change management. Without that role, the plan may stall or even backfire,” warns Jiménez.

“If the team perceives the plan as mere window dressing, trust in management will erode, and employees could become disengaged from the company,” cautions the CEO of Kaatch.co.

A plan designed only to “check the box” exposes the company to legal risk, business loss, and reputational damage. A well-negotiated, registered, and operational plan avoids sanctions and protects the bottom line.