Navigating Pay Transparency 

Trust is the currency of relationships and it matters more than ever today.
At the heart of trust is transparency. Across Canada, standards around pay transparency are gaining momentum, and employees themselves are demanding more open, equitable approaches to salary disclosure.

Are you ready?

Compliance with transparency laws is just the beginning

Today, all legislative paths point towards ever-increasing requirements around pay transparency.

In the last two years, 4 of 10 Canadian provinces

have passed or plan to introduce new requirements for salary disclosure.*

  • Canada

    BC’s Pay Transparency Act took effect in 2023 and by 2026, all employers with 50+ employees or more will be required to post pay transparency reports. In late 2023, Ontario proposed new pay transparency legislation.

  • Europe

    The European Union Pay Transparency Directive is expected to come into force during 2023, requiring Member States to sign into local law within 3 years.

  • United States

    Pay transparency requirements now exist in multiple US states and localities, including including major markets such as New York and California. Similar requirements has been proposed in a growing group of other states and localities.
*As of March 2024, British Columbia (BC), Prince Edward Island (PEI), Nova Scotia (NS), and Newfoundland and Labrador (NL) have passed some form of pay transparency legislation. Proposed legislation was voted down in Manitoba and has been proposed in Ontario.

Shifting expectations

The rise of social media, new generations at work, and increased focus on diversity, equity, and inclusion have led to shifting expectations around pay transparency.

  • 40%

    of employees are unlikely to apply for a job without compensation information in the job posting

  • 28%

    of employers openly communicate pay ranges

  • 69%

    of employees who say they know their own pay range

  • 59%

    of employees have researched their pay ranges

  • 53%

    of Gen Z share their compensation with colleagues
Source: Inside Employees’ Minds, Mercer Canada 2023-2024; November Compensation Planning Survey, Mercer Canada 2023

Understanding the future and taking steps to get there

  • Pay transparency is a journey, and organizations start and stop at different points. The key is to define your strategy and build a roadmap between where you are today and where you want to go.

Employers face many choice points in their pay transparency journey:

Employers face many choice points in their pay transparency journey: From preparing on how to approach pay transparency to shifting from compliance to fairness, organizations have the option from complying with legislation to full transparency.

Mercer partners with clients to shape their pay transparency strategy, mitigate risks through a comprehensive assessment and development of a sound rewards ecosystem, and develop their story and brand through engaging communications.

The journey toward greater transparency involves assessing your readiness, setting your destination, planning for the journey, sharing your story and measuring the impact.

Wherever you are today is the perfect place to start

Whether you have been providing salary information internally and externally for years or are just getting familiar with these concepts, your journey to pay transparency is crucial for your company’s overall evolution.

Listen to our podcast to hear the latest on pay transparency.

Pay transparency is not a passing fad, and will continue to accelerate with shifting expectations and continuing legislative activity.

Is your organization prepared?

This infographic may not be sold, reproduced, or redistributed, in whole or in part, without the prior written permission of Mercer (Canada) Limited. This infographic and any recommendations, analysis, or advice provided herein are not intended to be taken as advice regarding any individual situation and should not be relied upon as such. The information contained herein is based on sources Mercer believes are reliable, but Mercer makes no representation or warranty as to its accuracy. Any statements concerning actuarial, tax, accounting, or legal matters are based solely on Mercer’s consulting experience and are not to be relied upon as actuarial, tax, accounting, or legal advice, for which you should consult your own professional advisors. Any modeling, analytics, or projections are subject to inherent uncertainty, and the statements herein could be materially affected if any underlying assumptions, conditions, information, or factors are inaccurate or incomplete or should change. Mercer shall have no obligation to update the report and shall have no liability of any kind (including, without limitation, for any direct, indirect, consequential, exemplary, special or other damages) to you or any other party arising out of this publication or any matter contained herein.

Contact us or speak with your Mercer consultant to learn more.

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