[Canada] Less than 20 per cent of employers have pay transparency strategies

A new survey has revealed that pay transparency is fast becoming a requirement for organisations around the world; crucial for global compliance and attracting and retaining employees, Talent Canada reports.

Mercer’s 2024 Global Pay Transparency Survey Report is based on the findings of Mercer’s 2024 Global Pay Transparency Survey. The survey was administered online from April 15 to May 15, with 1,160 companies headquartered in 45 countries taking part. Approximately 35 per cent of those companies are headquartered in continental Europe and the Nordics, 32 per cent in the US and another 22 per cent in Canada, 7 per cent are based in the UK and Ireland and four per cent in Asia.

The survey reportedly found that in Canada, over the last two years, four of 10 provinces – British Columbia, Newfoundland and Labrador, Ontario and Nova Scotia – have legislated or plan to introduce new requirements for salary disclosure. Companies have begun to respond to demand but only 16 per cent have implemented a pay transparency strategy, 41 per cent have strategies in development and 22 per cent intend to develop their strategy within the next year.

“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,” Christie Rall - partner, transformation with Mercer Canada - said. “Organizations need to proactively prepare for continued legislation around both candidate and employee transparency and align with their shifting expectations.”

Mercer’s survey shows that while 77 per cent of companies cited compliance as a key driver of their pay transparency strategy, more than 50 per cent of companies reported increasing employee satisfaction and alignment with company values as additional leading drivers.

“Organizations should keep pay transparency at the forefront of their planning to create a competitive advantage, attract and retain talent, and build a more inclusive culture,” Ms Rall said.

Globally, nearly seven out of 10 employers (69 per cent) agree that pay transparency is an expectation of candidates. Expectations for pay transparency are higher among candidates than employees in every region, reflecting the growing demand for more open remuneration practices.

Employers do acknowledge growing expectations around pay transparency, however, a significant readiness gap reportedly persists. Less than one-third (32 per cent) of organisations feel prepared to meet global transparency requirements. Companies do plan to significantly increase their level of sharing of hiring pay ranges on job postings in future. Currently, 60 per cent share hiring pay ranges; the figure is expected to rise to 94 per cent globally over the next two years.

Source: Talent Canada

(Link and quotes via original reporting)

A new survey has revealed that pay transparency is fast becoming a requirement for organisations around the world; crucial for global compliance and attracting and retaining employees, Talent Canada reports.

Mercer’s 2024 Global Pay Transparency Survey Report is based on the findings of Mercer’s 2024 Global Pay Transparency Survey. The survey was administered online from April 15 to May 15, with 1,160 companies headquartered in 45 countries taking part. Approximately 35 per cent of those companies are headquartered in continental Europe and the Nordics, 32 per cent in the US and another 22 per cent in Canada, 7 per cent are based in the UK and Ireland and four per cent in Asia.

The survey reportedly found that in Canada, over the last two years, four of 10 provinces – British Columbia, Newfoundland and Labrador, Ontario and Nova Scotia – have legislated or plan to introduce new requirements for salary disclosure. Companies have begun to respond to demand but only 16 per cent have implemented a pay transparency strategy, 41 per cent have strategies in development and 22 per cent intend to develop their strategy within the next year.

“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,” Christie Rall - partner, transformation with Mercer Canada - said. “Organizations need to proactively prepare for continued legislation around both candidate and employee transparency and align with their shifting expectations.”

Mercer’s survey shows that while 77 per cent of companies cited compliance as a key driver of their pay transparency strategy, more than 50 per cent of companies reported increasing employee satisfaction and alignment with company values as additional leading drivers.

“Organizations should keep pay transparency at the forefront of their planning to create a competitive advantage, attract and retain talent, and build a more inclusive culture,” Ms Rall said.

Globally, nearly seven out of 10 employers (69 per cent) agree that pay transparency is an expectation of candidates. Expectations for pay transparency are higher among candidates than employees in every region, reflecting the growing demand for more open remuneration practices.

Employers do acknowledge growing expectations around pay transparency, however, a significant readiness gap reportedly persists. Less than one-third (32 per cent) of organisations feel prepared to meet global transparency requirements. Companies do plan to significantly increase their level of sharing of hiring pay ranges on job postings in future. Currently, 60 per cent share hiring pay ranges; the figure is expected to rise to 94 per cent globally over the next two years.

Source: Talent Canada

(Link and quotes via original reporting)