Pay Transparency Will Streamline Hiring

Pay Transparency Will Streamline Hiring By Tahir Khorasanee, LL.M. Senior Associate, Steinbergs LLP Ontario’s upcoming pay‑transparency rules have divided opinion among employment lawyers and HR professionals. In a recent column, Howard Levitt argued that forcing employers to list salary ranges in job postings would create extra work for businesses and leave job seekers worse off. Yet, these new regulations are designed to make hiring simpler, fairer and more efficient by ensuring everyone knows what to expect from the very start. Starting July 1, 2025, larger Ontario employers must give new hires essential information—like job title, work location, pay period and starting wage—by the first day on the job. Then, as of January 1, 2026, any role advertised publicly will need to include either a specific salary or a clear range. There are sensible exemptions (for internal postings and jobs entirely outside Ontario), but most positions will now come with compensation details up front. To prepare, companies should: Review all current job ads and offer letters to add salary ranges. Update applicant‑tracking systems so every external posting prompts for compensation fields. Keep records of all posted jobs and applications for at least three years in case of a Ministry of Labour review. Smaller businesses can map each role to standard salary bands, making it easy to choose an appropriate range. For roles paying under $200,000 a year, the range must span no more than $50,000—enough flexibility to attract candidates without leaving budgets in question. Instead of red tape, early salary disclosure cuts out mismatches and speeds up hiring. When candidates see the range before they apply, they self‑select: those with wildly different expectations won’t waste anyone’s time. Recruiters can focus on serious contenders, leading to faster interviews, higher offer‑acceptance rates and better retention. In short, clear pay information builds trust and strengthens an employer’s brand. Many companies already ask about salary during prescreening calls or interviews with questions like “What are your expectations?” or “Are you exploring other roles?” The new rules simply standardize that step, embedding clear ranges into every public posting so there are no surprises later on. Successful rollout relies on more than policy changes. HR teams should train hiring managers on the new requirements and equip IT to enforce mandatory salary fields in career portals. Simple dashboards can track which postings comply and flag any missing information. Working with legal counsel ensures the wording is accurate, while technology minimizes manual effort. As Ontario implements its pay‑transparency framework, employers have an opportunity to set the bar. By sharing salary ranges openly, businesses not only meet their legal obligations but also attract the right people and build a culture of fairness. Embracing transparency now will streamline the hiring process and help match the right candidates with the right roles—proving that, far from creating hurdles, pay disclosure is a powerful tool for better recruitment.