Wage transparency is a global trend that will become increasingly present in organizations of all sizes, particularly as a result of the new provisions of the Pay Equity Act. How can you adapt to this as an employer, manager or human resources specialist?
“Transparency is becoming essential, not only because the law requires it, but also because applicants coming for an interview have gathered information found everywhere on job sites to know the parameters of the company’s wage offer”, explains Anna Potvin, senior compensation advisor at Normandin Beaudry.
It’s the role of human resources specialists and recruiters to quickly set the record straight, because data found on the websites may not be consistent with the reality of the company’s offer. “It’s better to get in front and communicate the right information than to let social media do it”, she adds.
Transparency and scarcity of workers
Transparency is also a way to attract the best candidates, and faster than your competitors. If it is an obvious advantage, the company must carefully consider what to disclose. “The information must be controlled and avoid creating unattainable expectations for the future employees”, Anna Potvin warns.
“One way to address this is to keep all the benefits of overall compensation out of sight, as they are less likely to be disclosed on job sites”, she says. A global offer focusing on social benefits or employer flexibility can also be a way of overcoming the impossibility of offering high wages, as is sometimes the case in some small businesses.
Moreover, young workers and professionals weigh these non-monetary parameters in the balance when the time comes to accept or refuse a position. “For some applicants, having access to recent technological tools is as important — if not more — than the salary. For others, it will be the company’s environmental track record, the workplace or the work-family balance policies”, says Anne Potvin.
Wage transparency is taking hold and changing job market parameters. Specialists are relying on the snowball effect: “If most large organizations and businesses comply and objectively disclose their data, all the others will have to do it!”, Ms. Potvin concludes.