Many Canadian firms lag in pay transparency, with most unprepared for rising employee expectations
Mercer’s newly published '2024 Global Pay Transparency Survey Report' highlights that organizations globally now view pay transparency as a necessity.
The report shows that pay transparency is increasingly driven not only by compliance requirements in certain countries but also by the need to attract and retain employees in a competitive market.
In Canada, four provinces — British Columbia, Newfoundland & Labrador, Ontario, and Nova Scotia — have either implemented or plan to introduce new salary disclosure regulations over the past two years.
Despite this momentum, only 16 percent of Canadian companies have developed a full pay transparency strategy. However, 41 percent are currently building one, and another 22 percent plan to develop one within the next year.
Christie Rall, partner, Transformation at Mercer Canada, commented that “a large portion of Canadian organizations are not yet thinking about transparency beyond legal requirements,” indicating a focus on compliance rather than proactive transparency.
She noted that “Canadian employees are savvier than ever about compensation,” though employers remain hesitant to disclose full pay information.
Rall advises that organizations “proactively prepare for continued legislation around both candidate and employee transparency,” aligning with shifting expectations among employees and job seekers.
Globally, most companies (77 percent) surveyed view compliance as a key driver of pay transparency. However, more than half also prioritize increased employee satisfaction and alignment with company values as additional motivating factors.
Rall added that organizations “should keep pay transparency at the forefront of their planning” to remain competitive in talent acquisition and retention while building a more inclusive workplace culture.
According to the survey, nearly 69 percent of employers worldwide recognize that candidates now expect pay transparency, a trend that reflects growing demand for open compensation practices.
Despite these rising expectations, a significant readiness gap persists, with only 32 percent of organizations reporting they feel equipped to meet global transparency requirements.
Currently, six in ten employers (60 percent) share hiring pay ranges in job postings, a figure that Mercer anticipates will rise to 94 percent globally over the next two years.
The survey’s findings underscore the evolving landscape of pay transparency in Canada, where fewer than 20 percent of employers have fully implemented these strategies, while 41 percent are in development, and 22 percent plan to adopt them within the coming year.
