Why Pay Transparency Matters for Businesses

Pay transparency is becoming an important expectation for both employees and job seekers.

At its core, pay transparency means openly sharing information about compensation, including salary ranges, pay structures, and how pay decisions are made. For employers, this can help with building trust, strengthening workplace culture, and improving recruitment and retention. For employers and job seekers, this can help identify and understand potential pay inequities.

British Columbia’s Pay Transparency Act has brought greater attention to the issue, and many employers are discovering that transparent and equitable pay practices offer benefits that extend well beyond legal compliance.

Despite this progress, significant pay disparities remain in British Columbia. According to the B.C. Pay Transparency Annual Report 2026, the provincial gender pay gap decreased from 18.4% in 2022 to 14.5% in 2025, meaning women still earned approximately 85 cents for every dollar earned by men. The gap was even wider for some groups:

  • Racialized women earned 74 cents for every dollar earned by men.
  • Indigenous women earned 83 cents for every dollar earned by men.
  • Recent newcomer women earned 69 cents for every dollar earned by men.

The report also found that B.C. had the third-largest gender pay gap among Canadian provinces in 2025, highlighting the continued need for employers to review pay practices and address barriers that contribute to unequal outcomes.

These findings highlight the importance of transparent compensation practices, and the role employers can play in addressing barriers that contribute to unequal outcomes.

Building Trust in the Workplace and Strengthening Workplace Culture

A key benefit of pay transparency is employee trust. Employees want to know that pay decisions are fair and consistent. Research highlighted by the Chartered Professional Accountants of British Columbia notes that employees’ perception of fairness is closely connected to morale, engagement, and job satisfaction.

When employees believe they are being paid fairly, employers often see:

  • Stronger employee engagement
  • Better communication
  • Higher job satisfaction
  • Improved workplace culture

Clear pay structures and salary ranges help employees understand how compensation decisions are made. This can increase confidence in the fairness and consistency of an organization’s pay practices.

Improving Recruitment and Retention

Pay transparency also plays an important role in recruitment and retention. Job seekers increasingly expect salary information to be included in job postings, and many candidates view transparent employers as more trustworthy and attractive places to work.

Providing salary ranges can help:

  • Attract qualified applicants
  • Reduce time spent negotiating compensation
  • Improve candidate trust during hiring
  • Lower turnover and recruitment costs

Research from Grant Thornton found that 91.9% of mid-market leaders consider a company’s gender equality initiatives when applying for a new role. Businesses that visibly demonstrate fairness and equity may have a competitive advantage in attracting and retaining talent.

The same report found that organizations committed to gender equality initiatives were more likely to experience revenue growth, staff growth, and export growth. Employers also reported that gender-diverse leadership teams contributed to:

  • Better decision-making
  • Increased innovation
  • Improved financial performance

Identifying and Addressing Pay Gaps

Pay transparency can also help employers identify and address wage gaps that might otherwise go unnoticed.

Data from the British Columbia Office of the Human Rights Commissioner shows that pay gaps continue to affect many groups, including women, racialized workers, Indigenous Peoples, newcomers, caregivers, and people with disabilities.

These gaps are often linked to:

  • Unconscious bias
  • Caregiving responsibilities
  • Occupational segregation
  • Barriers to advancement
  • Long-standing barriers and discrimination

Addressing pay gaps can also help employers strengthen employee trust, improve retention, and reduce the risk of workplace complaints.

When employers regularly review their pay practices, they are better able to identify pay inequities and make informed adjustments. Over time, this can build employee confidence and contribute to a more inclusive workplace culture.

Understanding B.C.’s Pay Transparency Act

In British Columbia, pay transparency is now a legal requirement for many employers.

The Province introduced the Pay Transparency Act in May 2023, with key provisions taking effect on November 1, 2023. The legislation was designed to help address discrimination and reduce gender-based pay disparities.

Please note that this information is intended for general informational purposes only and should not be considered legal advice. Employers are encouraged to review the requirements of the Pay Transparency Act directly and contact the Government of British Columbia or seek legal counsel if they have questions about their obligations.

Under the Act, provincially regulated employers must include wage or salary information in all publicly advertised job postings. This applies to:

  • Jobs posted on employer websites
  • Postings on job boards and recruitment platforms
  • Remote positions open to B.C. residents

The requirement does not apply to:

  • General “help wanted” campaigns
  • Non-public job postings
  • Recruitment campaigns that do not advertise a specific role

According to the Government of British Columbia, employers must provide a reasonable wage or salary range when posting a position.

Examples that meet the requirement include:

  • $20–$25 per hour
  • $40,000–$60,000 per year

Examples that do not meet the requirement include:

  • “Competitive wage”
  • “Up to $30 per hour”
  • “$20 per hour and up”

Moving Beyond Compliance

Pay transparency is about more than meeting legal requirements. It helps create workplaces where compensation decisions are based on clear and consistent criteria, giving employees and job seekers greater confidence that pay practices are fair and equitable.

By supporting fairness and accountability, transparent pay practices can contribute to more inclusive workplaces and better outcomes for both employers and employees.

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Sources

British Columbia Office of the Human Rights Commissioner. (2025). Pay gap types and causes. https://bchumanrights.ca/employment-equity/   

Chartered Professional Accountants of British Columbia. (2023, December). What are the benefits of BC’s Pay Transparency Act? https://www.bccpa.ca/news-events/cpabc-newsroom/2023/december/what-are-the-benefits-of-bc-s-pay-transparency-act/  

Government of British Columbia. (n.d.). Guidance on wage or salary information on job postings. https://www2.gov.bc.ca/gov/content/governments/about-the-bc-government/gender-equity/wage-or-salary-information-on-job-postings  

Government of British Columbia. (n.d.). Pay transparency in B.C. https://www2.gov.bc.ca/gov/content/governments/about-the-bc-government/gender-equity/pay-transparency-in-bc  

Government of British Columbia. (2026, June). Pay transparency annual report. Ministry of Finance. https://www2.gov.bc.ca/assets/gov/british-columbians-our-governments/services-policies-for-government/gender-equity/pay-transparency-annual-report-2026.pdf

Grant Thornton. (2026). Women in business 2026: The value of visibility. https://www.grantthornton.global/en/insights/women-in-business/  

Roper Greyell LLP. (2023). BC Pay Transparency Act: Employers – What you need to know. https://www.rbs.ca/bc-workplace-blog/bc-pay-transparency-act-employers-what-you-need-to-know/  

Statistics Canada. (2025). The gender wage gap persists. https://www.statcan.gc.ca/o1/en/plus/9084-gender-wage-gap-persists