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Ontario employers have now had more than a month to adjust to the province’s pay transparency legislation.

The new law mandates that companies with more than 25 employees must include salary ranges and disclose the use of artificial intelligence, vacancy status and other compensation details in publicly advertised job postings. Employers must also inform candidates within 45 days of their last interview whether they were successful.

Travis O’Rourke, the president of recruitment firm Hays Canada, says the legislation has arrived during what he describes as an “interesting time” in the labour market.

With unemployment ticking up and job mobility slowing, Mr. O’Rourke says transparency may expose which employers are truly competitive.

“Only one company can pay the most and, if you’re not that organization, you’re really going to struggle for talent,” he says.

Will transparency speed up hiring?

In theory, yes.

Right now, recruiters often sift through hundreds of resumes from candidates who may ultimately reject the role because of lower-than-expected compensation.

“If it shrinks the talent pool and only gets people in who are looking for the advertised value, it should, in theory, speed it up,” Mr. O’Rourke says.

However, he warns the legislation leaves room for wide ranges – sometimes as much as $50,000 – and that could backfire.

“You’re going to get a lot of people thinking, ‘Oh, I’ll just try and get money at the top end of the range,’ and the company actually had no intention of ever paying that amount,” he says. This can lead to rejected offers and candidates pulling out late in the process, actually slowing down the hiring process.

How candidates should interpret, and negotiate within, salary ranges

For job seekers, Mr. O’Rourke’s advice is to do your homework.

“Figure out what you’re worth,” he says, urging candidates to crowdsource data through recruiters, government sources and salary platforms. He also recommends entering negotiations with three numbers in mind: a dream number, a realistic target and a walk-away point.

Equally important is tone. “You and your hiring manager, for the most part, you’re on the same team,” he says. Using collaborative language such as ‘What can we do to try and get me closer to what my market rate is?’ is more effective than ultimatums.

And don’t forget the full package.

“Yes, you want to get a good salary, but what’s my title going to be? What’s my work-from-home environment going to be? What’s my vacation pay going to be?” he says.

Tips for recruiters navigating change

For recruiters, the onus is on accuracy and alignment. “Make sure that you’ve got a hiring manager that’s actually going to pay what they said they would,” Mr. O’Rourke says.

He says it’s also important to consider the pay range of employees who were hired before the legislation was put into place. In a workplace culture where employees openly discuss pay, misalignment or large pay disparities can quickly unravel a hire.

“That’s a nightmare for an internal or external recruiter, because now you’re just redoing the work,” he says.

As transparency becomes the norm, both sides face a new reality where preparation, honesty and alignment become competitive advantages.

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