Business Sherpa Group was proud to host an event regarding transparency early in May, looking at the new provisions in the Working for Workers Four Act. This will require changes in policies around transparency, the use of AI, and different provisions around pay.
Laura Gauley, our HR Lead and all-around policy expert, sat down to address business concerns and look at the opportunities SME’s have through this legislation.
We also recently spoke about transparency on the CanadianSME Podcast. You can listen here:
Impact of Pay Transparency on SMEs: An insightful chat with Laura Gauley
Why Transparency Matters
We’ve seen this push for businesses to change their approach with regards to transparency coming for a while now, especially coming out of 2020.
Workers want their managers to be more open, to communicate more, and they’re willing to put their work where their mouth is. Surveys suggest more workers do not apply to places that aren’t transparent in their salary levels across all age groups.
For employers, they can use transparency to “foster growth and cultivate a more equitable workplace” which can open up a whole host of benefits that elevate the organization for the long term, making it a more attractive, positive workplace. This in turn can bring in higher quality talent that aligns with the organization from the onset thanks to clear pay ranges, while also improving trust with current staff bringing out strong engagement, and ultimately keeping things moving efficiently (and pleasantly!).
It is becoming clear that being open on this issue is a win for businesses and employees alike. The new changes in Bill 149 are a reflection of this changing market desire.
Getting Ready For Changes
The full provisions around pay transparency have no set implementation date at the time this article was written. We have a PDF outlining those items that do have dates. This doesn’t mean businesses should wait until there is a deadline set by the government, as these things take more time than one might expect.
Transparency on pay is a policy just like all the others at a business, and will require a review of practices, input from your team, and a plan to address any issues that arise from the increased access to information.
Laura Gauley recommends that “taking proactive steps can place an employer in a favourable position…so now is a good time to implement these [transparency changes]. This approach will help mitigate compliance risks and associated risks… [Organizations] can stand to gain a competitive edge by distinguishing themselves as pioneers in fostering fair and equitable employment practices”.
Read: Navigating the Maze: 5 Tips for Keeping Up with HR Legislation for Small Businesses
Wrapping It Up
If small business owners have any questions on transparency or are looking at this change and wondering if their policies require review, our team of HR experts can help you assess these changes from a small business perspective, and ultimately support bringing your team and your organization closer together.
We want to thank those that came to the discussion for their participation and our HR team for working on this project.
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