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Some provinces will now require employers to disclose salary ranges, and Ontario wants new rules on hiring with AI. Here’s what it means for job seekers.
When you’re looking for a new job, it’s common to search through job postings that include extensive details about the role and responsibilities, as well as information on benefits, vacation days, work culture and many other reasons you should want to work at the company. However, these postings often lack one critical piece of information—the compensation.
Plus, if you choose to apply, it’s not always clear who (or what) will review your resume on the other end. Interactions with prospective employers are often limited—they can come in the form of an automated email stating you were passed over for another candidate.
In a bid to improve transparency and eliminate bias in the hiring process, some Canadian provinces are implementing new rules around recruitment and pay disclosure. Let’s look at what’s being proposed and what it means for your next job search.
The Government of Ontario will soon introduce new legislation that requires employers to include expected salary ranges in job postings. The new rules would first apply to jobs that pay $100,000 or less. It’s unclear if or when the province will require employers to disclose salaries that pay more than $100,000.
Ontario will become the latest Canadian province to introduce pay transparency measures. Prince Edward Island introduced a similar law in 2022, and British Columbia’s Pay Transparency Act, passed in May 2023, came into effect on Nov. 1, this year. The former Ontario Liberal government previously passed a pay transparency law in 2018, however it was shelved when the Conservative government came to power.
The new law in Ontario would also make it the first province to require companies to disclose if artificial intelligence (AI) is being used to assist with hiring. In February 2023, Statistics Canada found that around 7% of Ontario businesses planned to adopt AI over the next 12 months.
In Ontario, the proposed legislation is aimed at helping job seekers and existing employees make informed decisions about their careers. Last year, only 37% of employers in Ontario posted salary information with online job postings.
The law could help address the gender pay gap in Canada. Currently, women earn $0.89 for every $1 that men earn, according to the Canadian Women’s Foundation.
“At a time when many companies are posting record profits, it is only fair they communicate transparently about how they pay workers,” Ontario’s Minister of Labour, Immigration, Training and Skills Development, David Piccini, said in a press release.
With AI-assisted hiring, the concerns are about ethics and privacy. AI applications gather vast amounts of data and can be used to identify an applicant’s age, race, religion and political affiliation. Some can be used to assess an applicant’s use of social media, Piccini said at a press conference.
In addition to the privacy concerns, there can be biases inherent to AI tools. The use of AI in recruitment could inadvertently screen out qualified candidates from underrepresented groups, such as women, visible minorities, neurodiverse people, immigrants and those with disabilities.
A growing number of employers are using AI tools to save time and money during the hiring process. However, job applicants are usually unaware of this.
Applicant tracking systems (ATS) are a common tool used to review applications and identify candidates who are best suited for the job. While useful to employers, the use of ATS means your resume may never be seen by a real-life recruiter, especially if your resume includes a career gap or doesn’t include post-secondary education.
You may have heard about adding keywords from the job description to your resume, but this approach can only get you so far. AI tools have become more sophisticated and now evaluate other criteria, such as the names of companies you’ve worked for in the past, how long you’ve been in the workforce, and the distance between your home and the company’s office.
The most effective way to beat AI hiring bots is to apply for jobs that match your skills and experience. AI software may be doing the initial screening, but at the end of the day, it’s a human holding the official job offer.
Here’s how you can take advantage of new salary disclosure rules, regardless if you’re a job candidate or existing employee.
No one likes going through the entire interview process only to find out the salary range is lower than expected.
Job seekers should understand that salary ranges are influenced by compensation trends in their chosen field of work, market rates for specific job titles, and even geographic location. For example, some employers may offer a “cost of living” increase if you live in an expensive city. Generally, you can expect entry-level salaries to be within a narrow range. As you progress into more senior positions, you may see salary ranges widen to account for a broader number of factors, such as responsibilities, performance targets and bonuses.
Access to salary information in job postings provides an obvious up-front benefit. You could more easily find roles that match your income expectations—and you can overlook the ones that don’t pay enough. If you believe the position should pay more than what’s posted, know that you will have to defend your thinking in an interview. Employers may be reluctant to offer you what you want if they have many other interested candidates.
And while you may be tempted to negotiate for the top end of the stated pay range, make sure you have the education, skills and experience the hiring manager is looking for. Otherwise, you may be eliminated from the candidate pool should there be other qualified candidates who are willing to accept a lower salary.
Knowing the pay scale for your current role at your organization—or even what competitors are paying for the type of work you do—can help you figure out if you’re underpaid. If so, you should feel comfortable going to your boss and asking for a raise (with the statistics to back up your request). If you feel valued in your role, you may have the most negotiating power during your performance review.
You may believe the longer your tenure at the company, the more competitive your pay will be. Think again—nowadays, it’s often the new kid on the block who’s paid more. That’s because new employees are hired having negotiated their salaries at the current market rates, whereas existing employees often get smaller annual raises. Going into 2024, one study found Canadians could get an average 3.6% bump in pay.
Whether you’re a new or existing employee, if you’re at the peak of your pay band, it may be impossible to negotiate a higher salary.
However, you can always ask for other perks, such as a bonus, stock options, more vacation days, a flexible work arrangement or more benefits. These can be just as valuable as a raise. Make sure to enter negotiations with the same kind of performance and industry information you would use to ask for a salary bump.
Ultimately, knowing the pay ranges for a job you’re considering can save you time and energy. But remember salary is just one factor to consider when working for a company. Having a good work culture, flexible work schedule, social gatherings, training opportunities and great leadership are examples of non-financial benefits that can also add value to your career.
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