CanadianSME Small Business Podcast: Pay Transparency
Late last month, Business Sherpa Group’s Laura Gauley sat down with the CanadianSME Small Business Podcast to discuss current business topics, most notably Pay Transparency and how it can be used as a tool in the small business toolkit. We’ve linked the full conversation with host Maheen Bari below.
Pay Transparency as an Opportunity
Rather than approach the issue with apprehension, Laura Gauley suggests that pay transparency should be approached proactively by SMEs. An organization that embraces pay transparency “shows a dedication to social responsibility, being recognized as an employer that highlights…transparency and can attract good people”. Employees feel more supported and are more likely to engage when they know their employer is transparent.
Being proactive with regards to pay transparency favours well for another reason as well. It’s no secret – people want potential employers to be transparent on compensation – a sentiment echoed by CanadianSME Magazine’s call to action for HR managers to realign with core values of equity, fairness, and respect. Employers, and HR managers, who lead with these values will attract better workers, and see better results.
Pay Transparency as a Legislation
Pay transparency is not just an idea, it might soon be mandated, at least in Ontario. Bill 124, the most recent addition to the Working for Workers Act, would see salary ranges mandatory on job postings, making Ontario the first jurisdiction in Canada to mandate such a practice. Employers are already implementing these changes, regardless of the law, which is a sign of more bills like this coming down the pipeline.
How do small businesses prepare? According to Laura, “conducting reviews of organizational practices is crucial”, practices and policies like your current compensation philosophy and strategy, to make sure you have an approach should the legislation be passed. This approach aids regardless of whether it gets passed, since “current trends show people want…jobs with good pay, benefits, and work life balance”.
Final Thoughts About Pay Transparency
Small businesses may need to refine their communication strategies to address the new pay transparency legislation, to justify their direction on the matter. They may need to conduct compensation analysis, build out salary bands, and review what goes into their total compensation since total compensation is a great way for SMEs to position themselves as a competitive employer.
Read: Mastering Compensation Review at Your SME
All this may take some time, so businesses are recommended to start being cognisant of the matter. As always, our team of experts can help with this project, conducting compensation reviews or aiding in the preparation of communication strategies.
We want to thank CanadianSME magazine for having us on the podcast, and to host Maheen Bari for her collaboration and work. You can listen to the full discussion below.
