Offering transparent benefits a challenge but not unlikely, experts say

'There will be more demand to understand the differences between what companies offer in terms of healthcare coverage,' says AugmentHR's Kimberly Blake

Offering transparent benefits a challenge but not unlikely, experts say

While Ontario’s new pay transparency rules under the Working for Workers Act are part of a broader shift in workplace accountability, some HR experts argue there’s still some work that can be done, particularly around benefits and pensions.

However, they also emphasized the rules are one step closer to greater transparency in the workplace. Peter Zukow sees Ontario’s pay transparency legislation as part of a much broader societal move toward openness and accountability. He views the shift not as an isolated development, but as consistent with trends across various industries and sectors.

“The concept of transparency as a whole, be it on pay or every other aspect, is certainly something that we're seeing across all aspects of our culture and our environment,” said Zukow, managing partner at IQ Partners. “I think it's just an extension of the shift in our culture to provide people as much information as possible and make sure that it's as clear and accurate as possible.”

Kimberly Blake, senior HR consultant at AugmentHR, highlighted some organizations, especially in competitive industries, already use structured pay and total rewards systems as a recruiting advantage. But transparency levels vary widely depending on company size and sector.

While cash compensation is relatively easy to compare, she explained, benefits and retirement packages remain far less straightforward.

She also underscored that while employees often have access to general information about their benefits, those details are rarely discussed during the hiring process.

“Many people don't ask or won't know until they get into the onboarding and actually see some of the paperwork,” Blake said. However, she added that expectations are changing as younger workers are increasingly asking questions about virtual care and healthcare coverage earlier in the process.

Zukow noted that the focus of job seekers has shifted significantly over time. Where once base salary dominated conversations, today’s candidates are increasingly interested in the broader value an employer can offer. He pointed to a generational change in priorities, with modern workers placing greater emphasis on flexibility, work-life balance, and non-cash benefits, referencing everything from childcare support to hybrid work models as key parts of an employer’s total package.

Additionally, making benefits fully transparent has become complex, he added, particularly because their value varies widely depending on individual circumstances. For example, he explained that someone with a partner who already has a strong health benefits plan may place less importance on employer-provided coverage, while someone without that support would see it as a critical factor.

Blake believes one of the main reasons benefits and pensions have yet to be included in Ontario’s pay transparency law is the internal work many employers still need to do to bring outdated compensation practices up to standard. When the idea of pay transparency first surfaced, it raised concerns for employers who lacked a clear pay structure or had never looked at their compensation practices through an equity lens.

“Employers [are] preparing not only their practices, but their employee communications,” she said, adding that many managers aren’t yet equipped to have open conversations about pay.

She believes that starting with salary makes sense because it’s easier to compare. But as workplace culture shifts, transparency around benefits will inevitably follow.

“As this conversation within companies becomes more transparent, there will be more demand for people to understand the differences between different companies and what they offer in terms of healthcare coverage,” she said.

Tri Ngo, principal, compensation at Normandin Beaudry also highlighted that pensions and benefits are currently “out of scope” as the main objectives of the requirements are to address the historic or systemic wage gaps.

He noted that benefits and pensions are often more complex, variable across levels and roles, and may be difficult to summarize in a transparent, apples-to-apples way for job postings or simple reports.

“Disclosure of such programs may involve additional privacy concerns and administrative complexity, especially considering the diversity of benefit and pension offerings across industries and employer sizes,” noted Ngo in a statement, emphasizing that the law could expand in the future if policymakers determine there’s an equity related gap or impact relating to benefits or pensions, similar to the Ontario Pay Equity legislation.

Zukow points out that one of the major barriers to full transparency around benefits and pensions is the sheer complexity involved in assigning and communicating their value. Not only is the worth of a benefits package highly subjective but there’s also a disconnect between perceived and actual value.

He also notes that many employees don’t fully understand the details of their own plans, making it even harder to explain these offerings upfront.

“You could ask people who’ve been with a company for 10 years how their benefit plan works and what the costs are, and they probably wouldn’t know themselves,” he said.

From pensions to car allowances and remote work stipends, Zukow explains that the tax implications and varying structures make it difficult for employers to provide a standardized, easily digestible summary during hiring, especially when trying to outline individualized benefit impacts in a job posting or early-stage discussion.

Blake believes that one of the most effective ways to improve transparency around benefits and pensions is through greater involvement from plan sponsors, especially since many small and mid-sized organizations lack the internal capacity to do it on their own.

She explained that plan sponsors already play a key role during plan renewals or design discussions, and that process could be expanded to include a more intentional focus on equity and inclusivity.

She also emphasized the importance of better communication tools, like total rewards statements, that help employees clearly understand the full value of their compensation. Plan sponsors should also be “proactive” in helping employers articulate and deliver those messages, she said.

Blake described Ontario’s new pay transparency rules as an incremental move toward broader workplace clarity, especially for job seekers. She sees it as a shift that will slowly encourage employers to formalize their compensation practices, particularly those without established pay structures.

“This is about job seekers and employees getting more transparency,” she said, noting that the legislation serves as “a nudge” toward more consistent internal policies. “Organizations who are already competitive for talent and keep their employees engaged are already more transparent,” she said.