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Great employers see the value of pay transparency
Editorial by Christian Saint Cyr
National Director / Canadian Job Development Network
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Two years ago, I shared a social media post on proposed legislation in British Columbia requiring employers to include salaries or salary ranges in job postings. This was the most popular social media item I've ever posted generating nearly a quarter of a million impressions on LinkedIn.
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Workers and job seekers care passionately about wage transparency and employers who wish to excel in the competition for skilled talent should embrace this change, not try to skirt it.
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For a little history, British Columbia enacted pay transparency legislation in 2023 and by 2026, all employers with 50 or more employees will be required to post pay transparency reports.
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Both Newfoundland and Labrador and Prince Edward Island enacted pay transparency legislation in 2023 and 2022, respectively.
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Provincial pay transparency legislation is gradually being enacted across the country. On Jan. 1, 2026, Ontario-based employers will be required to include total compensation — including base salary, bonuses and commissions — or a range of expected compensation up to $50,000.
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This new legislation is having an impact on job postings. Last year, Indeed Hiring Lab reported almost half (49%) of Canadian job postings on Indeed featured pay information, up from 22% in early 2019.
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Unfortunately, requiring employers to do something doesn't always produce the best results. While more postings now advertise pay, salary information has become less precise. The median gap between low and high wage estimates (including postings without ranges) rose to 18% in early 2024, up from 10% five years earlier.
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Less than one-third of postings in several white-collar fields mention pay, compared to more than 60% among jobs that predominantly pay by the hour. Pay ranges tend to be wider among higher-paying occupations.
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This would suggest some employers are reserving higher wages for workers who are perceived to be more valuable. Unfortunately, all too often this will mean marginalized workers, who are more likely to accept a job offer, will be relegated to lower wages. While employers are sharing elements of wages, some are failing to create a more equitable wage structure.
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Because the legislation has come so quickly, many employers are now posting wages without a corporate strategy.
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Only 16 per cent of Canadian employers have implemented a pay transparency strategy, while 41 per cent have strategies in development and 22 per cent plan to develop their strategy within the next year, according to a new survey by Mercer.
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The survey, which polled more than 1,100 global companies, found 60 per cent said they share hiring pay ranges but this is expected to rise to 94 per cent in the next two years.
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"Regardless of legislated requirements, employers in any province can promote equity in the workplace by including expected salary ranges in job postings and publishing detailed pay transparency reports," says Caitlin Hurren, legal counsel at ADP Canada.
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“Encouraging open dialogue about pay equity and protecting employees from reprisals for discussing their compensation are essential. Employers should base compensation on the value of the work performed, ensuring no pay differences between employees doing comparable work. Documenting these practices and making them accessible fosters transparency and trust.”
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Pay transparency measures can also support employers’ attraction and retention strategies by promoting fairness in the hiring process and helping candidates make informed decisions. “Keeping applicants informed throughout the hiring process enhances their experience and strengthens the employer’s brand reputation, attracting stronger talent and aiding in employee retention.”
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In addition to supporting employees, pay transparency can also bolster an employer’s reputation among workers and the general public. Conversely, Hurren says companies that are perceived as lacking corporate responsibility and fairness might face challenges with their public image and brand reputation.
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“Such reputational concerns may make it more difficult to attract investors and business partners, potentially impacting the company’s financial health. Employers may also face legal risks, including lawsuits and regulatory penalties, which can further impact their reputation. Employers should prioritize compliance with pay transparency requirements to mitigate these risks and help maintain a positive reputation.”
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The top pay transparency initiatives cited by Canadian employers include making pay adjustments to align with the external market, internal pay compression and/or pay equity considerations (55 per cent), conducting pay equity studies (47 per cent) and reviewing current raw pay gaps (45 per cent).
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While 77 per cent of global companies cited compliance as a key driver of their pay transparency strategy, more than 50 per cent cited increasing employee satisfaction and aligning with company values as additional leading drivers.
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Companies reported taking actions such as assessing the competitiveness of pay practices (57 per cent), developing and updating compensation structures and ranges (57 per cent) and enhancing job architecture (52 per cent). Only 11 per cent said they’re taking no action on policies and practices.
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More than two-thirds (69 per cent) of global employers agreed that pay transparency is an expectation of candidates. Roughly a third (32 per cent) said they feel prepared to meet global transparency requirements, however, only four per cent strongly agreed they’re ready for the impact of global pay transparency requirements.
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So why should employers embrace pay transparency regulations rather than grudgingly comply with them?
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Allow me to share an analogous story. Last year, I interviewed the president of a large provincial trucking association as part of our annual labour market conference and I was amazed by the new initiatives the association was embracing such as electronic log-books, speed governors, truck inspections and increased training and certification.
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I said to this president, "this must be very costly and frustrating to the company owners."
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He replied, "our members embrace these changes because they make the industry better, generate more qualified truck drivers and ensure safer roads. Some employers reject these changes and they are always the companies with the worst reputations, the most unsafe vehicles and the most dissatisfied drivers. Frankly, we don't want these companies in our association."
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Companies that are fixated on secrecy in job postings are the same. Those companies that forbid employees from discussing salaries and may ever fire them for doing so are creating a toxic environment where employees only reluctantly go to work and which only serve as an example which makes employees distrustful of employers.
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The provincial governments aren't the only levels of government addressing pay transparency. Last year, the Government of Canada launched Equi’Vision, a new website that shines light on the barriers to equity experienced by women, Indigenous peoples, persons with disabilities, and members of visible minorities in federally regulated private sector industries. It provides user-friendly, easily comparable data on workforce representation rates and the pay gaps experienced by members of the four designated groups recognized under the Employment Equity Act. With Equi’Vision, Canada becomes the first country in the world to make this level of information publicly available.
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Equi’Vision data is submitted by employers with 100 or more employees as part of their annual reporting to the Labour Program under the Employment Equity Act. Individual employee information, including data-related to individual salaries, is not reported or disclosed.
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While this only applies to federally-regulated employers, the federally regulated private-sector comprises approximately 19,000 employers and 990,000 employees.
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Clearly wage transparency is a trend, what do we do with it in the job development context?
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It will help employers if you share information about these changes and encourage them to develop pay transparency policies. If you're in a province that has already enacted pay transparency legislation, encourage employers to post wages if they aren't already doing so.
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A great strategy is to measure employers based on their willingness to share wages and discuss pay equity. Employers who have a positive attitude about both will be more willing to consider hiring individuals with challenges to employment.
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Just like the trucking companies that embrace change will be the ones workers most want to work for, employers who embrace wage transparency will be the employers you most want to work with.
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In your community, not all employers are going to embrace job development services. Perhaps, only 20 per cent of employers are willing to consider your services and supports. Wage transparency can be a great way to find the employers who are more likely to hire your clients or students.
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We’ll be discussing pay transparency at our #MotivatingMondays meeting of the Canadian Job Development Network, Monday May 26th at 8:30am Pacific; 9:30am Mountain; 10:30am Central; 11:30am Eastern; 12:30pm Atlantic and at 1pm in Newfoundland.
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On the morning of Monday May 26th 'Click this Link' to join the session LIVE.
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