Pay gaps are a critical issue that Canadian workers continue to face. In 2021, Statistics Canada found that the salary gap between women and men in Canada is still around $0.83 to $1. 

One of the reasons pay gaps persist is because they’re often undisclosed. That said, one way to help remedy this issue is by making salary transparency a common practice in the workplace. Not only does this empower employees to negotiate their pay, it helps employers examine the extent to which pay gaps exist within their organization. According to a recent study by Indeed, 70% of employers who indicated that their company discloses the salary on job postings agree that it has been beneficial in decreasing pay gaps.

Ahead of Equal Pay Day on April 12, Indeed surveyed 1,000 employed and unemployed Canadians to better understand perceptions around pay. Here are some of the key findings: 

Canadians believe that fair pay is the biggest challenge in 2022

In terms of the gender pay gap, Indeed found that the majority of Canadians (65%) believe that the gender pay gap is a real issue. In the context of this survey, the gender pay gap was defined as white men being paid more, on average, than women and other underrepresented minorities (including men and women who identify as African American/Black, Hispanic/Latinx, Native Hawaiian, Pacific Islander, and/or Native American/Indigenous) for doing similar types of work, even after adjusting for experience, age, education, occupation, industry, location, company, and job title. 

This concern is one that needs to be addressed, as over half (51%) of Canadians believe the biggest challenge the world of work will face in 2022 is fair and equitable pay. 

More than half of Canadians do not believe they are paid fairly

Indeed also asked how employed Canadians felt regarding their own remuneration. The results were shocking, as only 52% of them believed they were being paid fairly. In a market where most industries are actively trying to hire new employees, companies should offer competitive salaries in order to attract and retain talent. 

For those considering job offers, 83% of Canadians found that having fair pay was one of the most important factors when accepting a new job and 81% of Canadians were more likely to apply to a company that had a reputation for paying its employees competitively. Pay transparency is also clearly preferred –  75% of Canadians are more likely to apply for a job if the salary range is listed in the job posting. Additionally, 70% of Canadians are more likely to apply for a job if the company publishes salary bands for all jobs.

Despite the fact that nearly half of Canadians don’t feel they’re being paid fairly, only a third of them feel comfortable with the idea of negotiating their salary, while 35% of them don’t know how to. More widespread pay transparency would likely make Canadians feel more at ease when trying to negotiate their salary.

Talking about pay is still taboo which hinders pay transparency

Talking about salaries is still a widespread taboo in Canada, which impacts pay transparency. Half of Canadians have never shared their salary with a friend, while 64% of them have never shared that information with a coworker of the same gender. Moreover, 68% have never disclosed their salary to a coworker of the opposite gender. A similar proportion of Canadians (67%) have never asked their coworkers how much they are paid.

Will people Dare or Share?

In order raise awareness about the importance of pay transparency, Indeed recently launched a campaign entitled, “Dare or $hare”. In a series of videos that will be shared on our social media channels, we asked participants if they’d rather share their salary or do a dare. For those interested in sharing their salary, we encouraged them to do so anonymously on Indeed’s Salary Tool,  where users also receive a personalized report about the average pay for those in their job role. For those who chose to do a dare, Indeed sought to understand why they were averse to sharing this information, and if they’d reconsider if they knew it would help eliminate the pay gap. 

If you’d like to be part of the solution, encourage pay transparency within your organization and consider adding salary ranges to your job postings on Indeed. Additionally, talk to your peers and utilize our Salary Tool to see how your salary compares to others in your role. Discussing your salary can feel uncomfortable, but it can also help ensure everyone is paid fairly. Visit indeed.com/paygap to learn more.

Methodology

This survey was conducted by Indeed via a third-party online panel of 1,000 employed and unemployed workers in Canada. The survey was conducted in March 2022. The confidence interval is +/-3.1%, with a 95% confidence level.