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.
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.
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.
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.
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.
“A large portion of Canadian organizations are not yet thinking about transparency beyond legal requirements, showing a prevalent compliance-centric approach,” said Christie Rall, transformation partner with Mercer Canada, in a press release. “But Canadian employees are savvier than ever about compensation, even though employers have been reluctant to share. Organizations need to proactively prepare for continued legislation around both candidate and employee transparency and align with their shifting expectations.”
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