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See moreMotherhood does not reduce a woman's ability. But too often, it reduces her income.
It usually happens step by step: time away from work, missed salary increases, delayed career moves, lower pension contributions, less visibility, fewer projects, changed expectations, or a more cautious role after returning to work. This is what economists call an opportunity cost: what a person gives up when choosing one path instead of another. In the case of motherhood, the term must be used carefully. A child, family life and care cannot be reduced to money. But the idea helps us see something that is often hidden: motherhood can carry a real economic cost, and that cost still falls mainly on women. In international research, this is called the motherhood penalty. It does not mean that motherhood itself is a penalty. It means that labour markets, family benefit systems, employer expectations and the unequal division of care often turn motherhood into a long-term income and career disadvantage.
Read articleStructured Estonians, hardworking Latvians and bold Lithuanians – how work cultures differ across the Baltics
The Baltic region is often perceived as a single entity. For many foreign investors, Estonia, Latvia and Lithuania tend to blend into one whole. However, when working with people and organizations across all three countries, it becomes clear that behind this shared perception lie three rather distinct work cultures, experiences and approaches to problem-solving. We are united by similar values – education, stability and the desire to receive fair compensation – yet the ways in which we seek to achieve these goals can differ.
Read articleBeyond Compliance: How the EU Pay Transparency Directive Can Transform Employee Engagement
The European Union's Pay Transparency Directive, which member states must transpose into national law by June 2026, has sparked considerable discussion among HR professionals and business leaders. While much of the conversation has centred on compliance requirements, reporting obligations, pay gap assessments, and potential penalties, there's a far more compelling story beneath the regulatory surface. This directive presents organizations with a unique opportunity to address what research consistently shows is one of the most powerful drivers of employee satisfaction: transparency in compensation systems.
Read articleBaltic salary markets in 2026: similar salary increases, different labour-market realities
Figure’s forecast survey tells us that looking ahead to 2026, the Baltic countries appear, at first glance, to be moving in sync, but labour market dynamics are diverging according to perceived economic realities of the last few years. Salary growth is slowing down across the Baltics, and inflation is no longer the dominant driver of pay decisions. Employers across Estonia, Latvia and Lithuania are approaching the year with cautious optimism rather than urgency, being more optimistic towards the south of the region.
Read articleNew EU directive encourages employers to hold more systematic salary discussions
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.
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