Survey shows Canadian employers have plenty of ground to make up if they hope to comply with new pay transparency legislation, according to a survey by Mercer Canada.
The pension and benefits consultancy found that just 16% of companies have implemented pay transparency strategies, even though 4 provinces (British Columbia, Newfoundland and Labrador, Ontario and Nova Scotia) have already enacted laws requiring various forms of salary disclosure.
A further 41% of companies are developing strategies, while another 22% have plans to develop a strategy. Ontario’s own pay transparency measures – requiring employers to include expected pay scales in publicly advertised job postings – were enacted as part of Bill 149, the Working for Workers Four Act, 2023, which received Royal Assent earlier this year. We are still waiting on regulations that will put these measures into full effect, but they could arrive at any time.
“A large portion of Canadian organizations are not yet thinking about transparency beyond legal requirements, showing a prevalent compliance-centric approach. But Canadian employees are savvier than ever about compensation, even though employers have been reluctant to share,” said Christie Rall, Partner, Transformation with Mercer Canada. “Organizations need to proactively prepare for continued legislation around both candidate and employee transparency and align with their shifting expectations.”
