Recent studies have brought to light a concerning disparity in pay between Canadian women and their male counterparts, with women earning up to $3.79 less per hour. This revelation has prompted widespread contemplation among employees across diverse industry sectors. Furthermore, discrepancies based on race have also come to the fore. In the realm of franchising, there exists a crucial opportunity to lead by example in advocating for pay transparency and equity.
This advocacy isn’t solely grounded in the expansive employment landscape that the franchise industry represents, but more fundamentally, it embodies a moral imperative. It’s time to initiate candid conversations, normalize the practice of pay transparency, and foster open dialogues about salaries. This ensures that every individual is justly remunerated for their contributions, devoid of any bias related to gender, age, or race.
The Rationale Behind Pay Transparency
It is inherently unjust and discriminatory for individuals performing the same job to receive disparate salaries solely based on gender. While employees acknowledge that variations in salary may be justified by differences in experience levels, disparities stemming from factors like age, gender, or race are unequivocally discriminatory.
Moreover, pay transparency serves as a valuable tool for businesses to gauge their salary structures against industry standards, ensuring equitable compensation for their workforce and alignment with prevailing norms.
Additionally, transparency empowers employees during salary negotiations, as they possess knowledge of prevailing salary averages and can articulate compelling arguments for fair compensation.
Although franchising falls under provincial regulation rather than federal oversight, adherence to the principles outlined in the 2021 Pay Equity Act, which mandates the identification and rectification of pay disparities in federally regulated sectors with more than 10 employees, is prudent.
Fostering Pay Transparency
The initial step involves a comprehensive review of existing staff salaries to identify and rectify any unjustified disparities unrelated to skill sets, experience, or tenure.
Subsequently, all new job postings should transparently indicate the salary or expected salary range associated with the role.
Lastly, it is imperative to foster a culture where employees feel empowered to discuss and compare their salaries without fear of reprisal. Cultivating an environment of openness and honesty holds the potential to enhance employee satisfaction and possibly reduce attrition rates in the long run.
Resources:
https://www.statista.com/statistics/1314929/average-employment-income-canada-gender/