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Pay Equity as a Business Advantage: Positioning Your Business for Success

Complying with the Pay Equity Act is not just a legal obligation, but an advantageous strategy that positions a business with a positive brand reputation. Having a poor reputation can be detrimental to a business’ customer base and profits. According to Leger’s 2026 Reputation study, last year, about 50% of consumers stopped buying from a company due to its poor reputation. With women holding 75% to 80% of spending power (estimated at a value of about $1.2 trillion in 2023), women are an attractive customer base to gain the loyalty of. By communicating compliance with pay equity and other inclusive practices, companies can improve their brand reputation and increase profits.

Brand Reputation

A positive brand reputation brings financial success.

To have long-term success, companies must build and maintain a strong, authentic relationship with consumers. Companies need to ensure they uphold their reputation by consistently delivering to the standard of their customers’ expectations. It’s crucial to maintain a positive reputation because it holds a heavy influence over consumers’ decisions. According to Leger, close to 80% of consumers say that a brand’s reputation is an important factor when purchasing a service or product.

Pay inequity can harm a brand’s reputation. A global survey found that nearly 30% of senior HR leaders and almost 25% of senior business leaders viewed negative external brand reputation as an outcome of pay inequity. These responses indicate that many leaders recognize that pay equity is not only a fair policy, but a strategic tactic to uphold their brand’s reputation.

Brand Advocacy and Loyalty

One of the biggest brand advocates for a business is its own employees.

Employees’ experiences and perceptions of their employer contribute to the way they speak about the company for years to come. As a result, both current and former employees are significant influences on a brand’s reputation. Understanding employees’ values and prioritizing workplace initiatives accordingly is a business-wise strategy, not only for company culture, but also for a brand’s reputation.

ADP’s 2020 survey found that close to half of younger workers stated they would feel more loyal to their organization if they took a public stance on diversity and inclusion. Reflecting this, many companies have already incorporated diversity and inclusion policies and initiatives in the workplace. ADP’s survey findings also show that one-third (32%) of Canadians believe that their organization prioritizes diversity and inclusion, and 36% of Ontarians feel that taking steps to improve diversity and inclusion at their workplace is a top priority for their company. A 2023 survey from ADP revealed that 71% of working Canadians believe pay equity is a priority for their organization (72% of women and 70% of men). Together, these findings demonstrate that employees value efforts to build inclusive and equitable workplaces and recognize when employers are taking steps to advance these goals.

External Benchmarks

When a company communicates the fair and equitable practices that they follow, the practices are further associated with the brand’s reputation.

Various third-party programs and workplace rankings, such as Canada’s Top 100 Employers, Great Place to Work Canada, and similar employer-recognition initiatives, release yearly lists ranking the most desirable workplaces, based on factors such as work environment, benefits, and staff ratings. Participation in or recognition by such programs can signal to consumers and candidates alike that fairness, trust, and employee well-being are top priorities for your organization.

Communication is Key

What companies say to consumers and how they say it matters.

UN Women released an international study in 2024 that was the first of its kind, which demonstrated that inclusive advertising, which avoids stereotypes and features authentic portrayals, increases both brand value and profits. The study found that inclusive ad campaigns made consumers 62% more likely to choose a brand as their first choice and increased customer loyalty by 15%. It also contributed to 5% higher shorter-term sales and 16% higher longer-term sales. Demonstrating that in the long run, inclusive practices pay off.

For employers looking to be more inclusive in their communications, the Pay Equity Office provides a resource to help employers create gender-neutral job postings. Visit the Gender Neutral Language for Job Ads resource on the PEO’s website to learn more.

Conclusion

In an increasingly values-driven marketplace, reputation matters.

Positioning your business to gain and maintain a positive brand reputation reaps many benefits. Complying with and thoughtfully communicating pay equity practices helps improve brand reputation, earn the trust of employees and consumers, and gain a competitive advantage.

Pay equity is a legal requirement for public-sector employers and private-sector employers with 10+ employees in Ontario. For more information on obligations and compliance, visit: https://payequity.gov.on.ca/i-hire-in-ontario/.

Pay Equity as a Business Advantage: Positioning Your Business for Success2026-09-15T09:57:34-05:00

Pay Equity as a Business Advantage: Maximizing Profits Through Pay

Pay equity has organizational and economic benefits. When organizations comply with the Pay Equity Act and adopt other equitable workplace practices, they are better equipped to retain talent, reduce turnover costs, and foster more diverse and inclusive workplaces, positioning them for stronger financial outcomes. As seen from Statistics Canada research, on a larger scale, policies that enable women to work and earn more, like the Pay Equity Act, are contributing to boosting the Canadian economy.

Reducing Costs Through Retention

Employee turnover represents a high and growing cost for Canadian businesses. According to a 2026 survey, Canadian businesses spend an average of $30,680 per employee on turnover-related expenses (up 5% from last year). This includes the costs of lost productivity, recruiting, onboarding, and training.

When employees do not believe that pay practices in their organization are equitable, they are more likely to consider leaving. The weight of pay inequity is evident in a 2023 ADP Canada survey, which found that the majority of Gen Z (63%) and Millennial (53%) respondents would consider leaving their roles if they experienced gender-based pay inequities. Proactively avoiding pay inequities is a clear strategy to retain staff.

A 2026 Randstad report found that Canadians rated reliable pay and benefits as one of the top factors contributing to a strong sense of job security. Aligning employer and employee values is beneficial to companies’ retention rates and financial success. Ensuring fair, equitable pay fosters a sense of job security for employees and reduces turnover.

Boosting the Economy

Pay equity is good for women and good for the economy.

Inclusive workplace practices such as pay equity not only lead to greater financial performance at the organization level; they also enable women to stay in the workforce which boosts the national economy overall. In 2024, women aged 25 to 54 in Canada had a record-high labour participation rate of 85%. The increase in women’s labour participation rate has driven Canada’s real gross domestic product (GDP) per capita 13% higher than it would have been otherwise. In 2024, this represented an increase of $8,658 in income for each Canadian. This showcases that women’s participation in the labour force, and policies that boost their participation, result in gains for the greater Canadian economy.

Women’s Spending Power

Pay equity increases the amount of money women earn, which is significant for women’s economic independence and spending power. The Business Development Bank of Canada (BDC) recognizes that, through direct purchasing power and influence, women are responsible for 75% to 80% of consumer spending, which amounted to about $1.2 trillion in 2023.

Conclusion

In Canada and globally, inclusive policies and practices like pay equity are valued by, and valuable to, companies and their workers.

Pay equity is more than a compliance obligation; it is a meaningful way to reduce turnover, strengthen business performance, improve profitability, and contribute to long-term economic growth. Paying equitably, increasing gender diversity, and closing the gender wage gap are all intertwined and boost the Canadian economy.

Pay equity is a legal requirement for public-sector employers and private-sector employers with 10+ employees in Ontario. For more information on obligations and compliance, visit: https://payequity.gov.on.ca/i-hire-in-ontario/.

Pay Equity as a Business Advantage: Maximizing Profits Through Pay2026-08-17T13:39:45-05:00

Pay Equity as a Business Advantage: Attracting and Retaining Talent

Four professionals standing in a bright office setting, each holding documents or a notebook. A desk, chair, wall art, and a potted plant are visible in the background. In the lower left corner, the Ontario logo and text read: “PAY EQUITY OFFICE BUREAU DE L’ÉQUITÉ SALARIALE Ontario.”Attracting and retaining the right talent remains a key challenge facing employers in Canada.

According to Mercer’s 2026 People Risks Report, the top concerns around labour shortages in Canada include skills mismatches between available employees and required roles (40%), increased labour costs due to competition for talent (35%), and operational disruption from insufficient staffing (32%).

In this labour market context, employers are not just looking to fill roles; they need to attract and retain talent with the right skills and a long-term fit.

This is where pay equity comes in. While it is a legal requirement for many employers in Ontario, pay equity can also reflect an employer’s commitment to equitable compensation practices, which plays a key role in attracting and retaining the right talent in a competitive labour market.

Talent Attraction

Research from Great Place to Work Canada (2025), based on 125,000 employee responses across multiple sectors, found that fairness and inclusion received an average positive score of 93%. This highlights their importance to employee belonging, well-being, and performance.

Fairness and inclusion can be advanced through various workplace practices, including equitable compensation practices such as pay equity, which ensures employees receive equal pay for work of equal value.

Against this backdrop, implementing and communicating pay equity can signal that an employer values fairness, inclusion, and equitable practices. Employers can make this visible by highlighting pay equity in job postings, career pages, and broader employer branding. This can strengthen the employer’s appeal to the right talent who prioritizes these values when considering employment opportunities.

Talent Retention

Attracting the right talent is only part of the challenge; retaining them is equally important.

When employees believe pay practices are equitable, they are more likely to stay with their organization. In contrast, perceived pay inequities can increase employee turnover.

A 2023 ADP Canada survey found that 63% of Gen Z respondents and 53% of Millennials would consider leaving their roles if they experienced gender-based pay inequities.

The cost of them leaving can be high. A 2026 Express Employment Professionals–Harris Poll survey found that Canadian businesses spend an average of $30,680 per employee annually on turnover-related expenses, including recruiting, onboarding, training, and lost productivity.

By implementing pay equity, employers can reduce employee turnover costs.

Conclusion

Pay equity is more than a compliance obligation. It can serve as a meaningful way to attract and retain talent.

As employee expectations of fairness, inclusion and equitable pay practices in the workplace continue to evolve, employers have an opportunity to go beyond compliance and make pay equity a visible part of their talent attraction and retention strategies.

Pay equity is a legal requirement for public-sector employers and private-sector employers with 10+ employees in Ontario. For more information on obligations and compliance, visit: https://payequity.gov.on.ca/i-hire-in-ontario/

Pay Equity as a Business Advantage: Attracting and Retaining Talent2026-07-23T15:01:36-05:00

Ontario’s Pay Equity Office Presents 5 Suggestions to Address Labour Shortages After Taking a Closer Look at Women and Skilled Trades – Press Release

March 11, 2026

Toronto, ON – It’s no secret that employers of skilled trades workers are struggling to find the workforce required to complete their projects, resulting in delays and millions of dollars in lost revenue. Ontario’s Pay Equity Office suggests that widening the talent pool by including more women in skilled trades is a key solution address the labour demand.

Though there is high labour demand across several industries in the skilled trades, women’s participation is lacking. Women only make up 5% of all tradespeople employed in Ontario’s construction industry, according to a 2025 BuildForce Canada report.

In a recent op-ed, Ontario’s Pay Equity Office, reinforces the need for policies like the Pay Equity Act, and those included in the Working for Workers Acts, that correct issues created by outdated policies from the turn of the 20th century. Ontario’s Pay Equity Office strongly encourages employers to reconsider century-old practices if they do not want to lose out on viable workers and profits.

The Pay Equity Office has looked closely at the complex and various issues preventing women from succeeding in skilled trades. While some can be addressed by government intervention, others can be supported by employers who are anxious to meet their labour demand and expand their approaches to hiring.

The Pay Equity Office provides five suggestions, based on research and observations, to help address employers’ labour shortages by supporting women’s career trajectories in the skilled trades.

  1. Build a respectful, safe workplace.
  2. Ensure fair compensation. To start the journey to pay equity, the Ontario Pay Equity Office invites employers to visit the Pay Equity Solution for Small Business Do-It-Yourself Toolkit.
  3. Communicate inclusive values in job postings. Employers can utilize the Ontario Pay Equity Office’s Gender Neutral Job Ads resource to craft inclusive job postings.
  4. Showcase clear pathways to leadership.
  5. Address childcare barriers and offer supports.

Read the full actionable suggestions and their reasoning in the op-ed, Women and Skilled Trades: What’s the Trade-Off?

To schedule an interview with Commissioner Philp, please contact: Alanna Sleep, Executive Assistant to the Commissioner, Pay Equity Office, Alanna.Sleep@ontario.ca.

Visit https://payequity.gov.on.ca/what-we-do/ for more information about the Pay Equity Office.

Ontario’s Pay Equity Office Presents 5 Suggestions to Address Labour Shortages After Taking a Closer Look at Women and Skilled Trades – Press Release2026-08-24T16:21:41-05:00

Ontario’s Pay Equity Office Reflects on Groundbreaking Report: “The Gender Pension Gap” – Press Release

February 18, 2026

Toronto, ON – With the deadline for Canadians to contribute to their RRSP for the 2025 tax year approaching on March 2, 2026, the concerning 17% gender pension gap highlights that women deserve policies that make their retirement contributions count.

Even though Canada has a robust retirement income system, women have been receiving less retirement income than men for decades. This is a result of a systemic imbalance that weakens economic security for all Canadians.

In 2024, Ontario’s Pay Equity Office with Dr. Elizabeth Shilton, feminist litigator, labour lawyer and pension expert, published the ground-breaking research paper, Understanding the Gender Pension Gap in Canada. The report found that although Canada’s retirement income system is recognized as one of the strongest in the world and retirement incomes have increased substantially for all Canadians, not all Canadians equally benefit. Men have consistently fared better than women, leading to a persistent gender pension gap of 17%, which means that women earn $0.83 for every $1.00 that men earn in retirement income.

“Though the report was published over a year ago, this trend is still concerning today,” notes Kadie Philp, Commissioner and CAO of the Ontario Pay Equity Commission. “The gender pension gap impacts Canadians not only during their retirement; it is an indicator of gender inequity at various stages of their career.”

The Gender Pension Gap (GPG) is the difference between retirement income received by men and women. In Canada, this income is calculated from three sources: Old Age Security and Guaranteed Income Supplement, Canadian Pension Plan/Quebec Pension Plan, and private pensions. In 2020, approximately 200,000 more women than men aged 65+ were living below Canada’s low-income cut-off. Digging deeper, 21% of women aged 75+ had incomes below this threshold — a concerning 51% higher than their male counterparts of similar age. This highlights a longstanding inequity that requires immediate action.

The report, Understanding the Gender Pension Gap in Canada, found that women spend fewer hours in the paid labour market, and when they do, they are more likely than men to earn lower wages. These factors contribute to the persistent gender earnings gap, leading to women having less earnings to contribute to their savings and retirement plans than men, which ultimately results in the gender pension gap. Of Canadians between the ages of 35 and 64 years old, women were more likely than men to report having no savings. When surveying the number of Canadians who have less than $5,000 in savings, 1 in 2 women (49%) report having less than $5,000, compared to 1 in 3 men (33%).

To close the gender wage gap, and ultimately the gender pension gap, the report provides actions that employers, policy makers, and individuals can take now: ensure equitable pay, build inclusive, modernized systems and pension policies that reflect today’s workforce.

There are various interrelated causes of gendered differences in income. This report highlights some of them to help readers understand the various dimensions of the gender pension gap and how we might close them. It is an essential resource for anyone committed to advancing workplace equity.

Visit https://payequity.gov.on.ca/what-we-do/ for more information about the Pay Equity Office.

Download our report on Understanding the Gender Pension Gap in Canada.

To schedule an interview with Commissioner Philp, please contact:

Sara Paesano, Executive Assistant to the Commissioner, Pay Equity Office, Sara.Paesano@ontario.ca

Quick Facts from the report:

  • Persistent Gap: A gender pension gap (GPG) exists in Canada and has not narrowed since 1976, when it was 15%. As of 2021, the GPG was 17%, despite women’s increased labour force participation.
  • Size of the Pension Gap: Women receive 83 cents for every dollar men receive in retirement income, with the average retirement income for Canadian women in 2021 at $36,700 and the median at $29,700.
  • Global Ranking: Canada ranks 12th out of 47 countries in the Mercer CFA Institute 2023 Global Pension Index. In 2021, the GPG in Canada was 17% according to Statistics Canada and 21.8% according to the OECD. In comparison, the average GPG across 34 OECD countries was 25.6%, with Estonia the lowest (3.3%) and Japan the highest (47.4%).
  • Disproportionate Impact: In 2020, approximately 200,000 more women aged 65+ lived below Canada’s low-income cut-off than men, with 21% of women aged 75+ having incomes below the cut-off, 51% higher than men of similar age.
  • Factors causing the Gender Pension Gap:
    • Historical Bias: Canada’s public pension system was and still is designed for heterosexual couples with a male breadwinner.
    • The existing gender wage gap (GWG). Two of the three “pillars” of Canada’s pension system are designed to be tied to earning power. Canada’s gender income gap was 28% (2021) for average annual earnings, and 11% (2020) for average hourly earnings.
    • Unpaid domestic labour is still mostly performed by women. In 2017, 89.9% of insured mothers in Canada took maternity/parental leave – at reduced income level – compared with 11.9% of insured fathers/partners.
    • Childbearing and child-rearing. Women are more likely than men to exit the labour market (temporarily or permanently) after having children. In 2015, the employment rate of women with children under the age of 6 was 69.5%, yet the employment rate of men with children under the age of 6 was 90.8%, signaling a 21.3% gap. Women’s employment rate increases with the age of their children but never catches up to that of men’s.
    • Caregiving. Women are more likely than men to work part-time due to caregiving responsibilities. In 2021, 24.4% of all Canadian female workers were part-time compared with 13% of all male workers. Women’s most-cited reason for working part-time was caring for children. Available data states that “one quarter of women reported caring for children as their reason for working part-time, compared to 3.3% of men”. Furthermore, women who work part-time may not be eligible to enroll in their workplace pension plan if they work fewer hours than their employer’s threshold.
  • Canada’s Retirement Income System: The GPG in Canada refers to the disparity in retirement income between men and women, measured across the three pillars of Canada’s retirement income system:
    • Pillar One: Old Age Security (OAS) and Guaranteed Income Supplement (GIS). OAS/GIS is a social pension, administered by the Government of Canada. An individual must have an income less than $134,626 (as of 2023) to qualify and payment amounts are based on age, marital status and income. Employment history is not a factor in determining eligibility (i.e., payments are not based on contributions). Pillar one is designed to be gender-neutral but favours women given their longer life expectancy compared with men. It indirectly addresses gender biases by providing essential financial support to women, who may have less access to other retirement income sources.
    • Pillar Two: Canada Pension Plan (CPP) / Québec Pension Plan (QPP). CPP/QPP is a mandatory, public contributory pension plan administered by the Government of Canada and the Government of Québec, respectively. With CPP, an individual’s pension payout is based on their earnings, their contributions, and the age they decide to start collecting their pension. The QPP is funded by contributions made by individuals who work in Québec and their employers. Pillar two embodies traditional gender biases. It is based on earnings and contributions, which historically favour men who have had higher incomes and longer work histories. This perpetuates the gender pension gap as women often earn less over their lifetimes and may have gaps in their employment due to caregiving responsibilities.
    • Pillar Three: Private Retirement Income. Private Retirement Income comes from sources such as workplace pension plans and personal plans (e.g., registered retirement savings plans). They are voluntary, private contributory pension plans. Not all individuals purchase a personal plan and not all employers provide workplace pension plans. In fact, three-quarters of Canadian adults are not covered by workplace pension plans. Pillar three represents gender biases in access to workplace pension plans and personal retirement savings. Women are disproportionately affected by the lack of workplace pension coverage due to factors such as the gender wage gap and part-time employment. Women are also less likely to have personal retirement savings due to lower incomes and fewer opportunities for financial investment.
Ontario’s Pay Equity Office Reflects on Groundbreaking Report: “The Gender Pension Gap” – Press Release2026-08-24T16:20:59-05:00

Ontario’s Pay Equity Office Reflects on Groundbreaking Report: “The Gender Pension Gap”

With the deadline for Canadians to contribute to their RRSP for the 2025 tax year approaching on March 2, 2026, the concerning 17% gender pension gap highlights that women deserve policies that make their retirement contributions count.

Even though Canada has a robust retirement income system, women have been receiving less retirement income than men for decades. This is a result of a systemic imbalance that weakens economic security for all Canadians.

In 2024, Ontario’s Pay Equity Office with Dr. Elizabeth Shilton, feminist litigator, labour lawyer and pension expert, published the ground-breaking research paper, Understanding the Gender Pension Gap in Canada. The report found that although Canada’s retirement income system is recognized as one of the strongest in the world and retirement incomes have increased substantially for all Canadians, not all Canadians equally benefit. Men have consistently fared better than women, leading to a persistent gender pension gap of 17%, which means that women earn $0.83 for every $1.00 that men earn in retirement income.

This trend is still relevant and concerning today, even though the report was published over a year ago. The gender pension gap impacts Canadians not only during their retirement; it is an indicator of gender inequity at various stages of their career.

The Gender Pension Gap (GPG) is the difference between retirement income received by men and women. The Gender Pension Gap in Canada is measured across the three “pillars” of Canada’s retirement income system:

  • Pillar One: Old Age Security (OAS) and Guaranteed Income Supplement (GIS).
  • Pillar Two: Canada Pension Plan (CPP)/Québec Pension Plan (QPP).
  • Pillar Three: Private Retirement Income.

In 2020, approximately 200,000 more women than men aged 65+ were living below Canada’s low-income cut-off. Digging deeper, 21% of women aged 75+ had incomes below this threshold — a concerning 51% higher than their male counterparts of similar age. This highlights a longstanding inequity that requires immediate action.

The report, Understanding the Gender Pension Gap in Canada, found that women spend fewer hours in the paid labour market, and when they do, they are more likely than men to earn lower wages. These factors contribute to the persistent gender earnings gap, leading to women having less earnings to contribute to their savings and retirement plans than men, which ultimately results in the gender pension gap. Of Canadians between the ages of 35 and 64 years old, women were more likely than men to report having no savings. When surveying the number of Canadians who have less than $5,000 in savings, 1 in 2 women (49%) report having less than $5,000, compared to 1 in 3 men (33%).

Factors Causing the Gender Pension Gap:

  • The existing gender wage gap (GWG). Two of the three “pillars” of Canada’s pension system are designed to be tied to earning power. Canada’s gender income gap was 28% (2021) for average annual earnings, and 11% (2020) for average hourly earnings. Women are less likely to have personal retirement savings due to lower incomes and fewer opportunities for financial investment.
  • Historical Bias: Canada’s public pension system was and still is designed for heterosexual couples with a male breadwinner. Pillar Two of Canada’s retirement income system is based on earnings and contributions, which historically favours men who have had higher incomes and longer work histories. This perpetuates the gender pension gap as women often earn less over their lifetimes and may have gaps in their employment due to caregiving responsibilities.
  • Caregiving: Women are more likely than men to work part-time due to caregiving responsibilities. In 2021, 24.4% of all Canadian female workers were part-time compared with 13% of all male workers. Women’s most-cited reason for working part-time was caring for children. Available data states that “one quarter of women reported caring for children as their reason for working part-time, compared to 3.3% of men”. Furthermore, women who work part-time may not be eligible to enroll in their workplace pension plan if they work fewer hours than their employer’s threshold.
  • Unpaid domestic labour is still mostly performed by women. In 2017, 89.9% of insured mothers in Canada took maternity/parental leave – at reduced income level – compared with 11.9% of insured fathers/partners.
  • Childbearing and child-rearing. Women are more likely than men to exit the labour market (temporarily or permanently) after having children. In 2015, the employment rate of women with children under the age of 6 was 69.5%, yet the employment rate of men with children under the age of 6 was 90.8%, signaling a 21.3% gap. Women’s employment rate increases with the age of their children but never catches up to that of men’s.

There are various interrelated causes of gendered differences in income. To close the gender wage gap, and ultimately the gender pension gap, the report provides actions that employers, policy makers, and individuals can take now.

Today, we have three calls to action for stakeholders to close the gender pension gap.

  1. Modernize pension systems to make them more inclusive and reflective of the workforce. Pension outcomes are shaped by evolving pension systems and labour market factors, yet the retirement income system in Canada and elsewhere have not fully kept pace with major changes in family dynamics and women’s workforce participation. In Canada in the 1960s, women represented about 30% of the labour force; by 2024, that figure had risen to approximately 85%. The workforce of today looks very different than it did over 60 years ago.
    Over time, the Canada Pension Plan (CPP) and the Quebec Pension Plan (QPP) have evolved to introduce important features that help mitigate gender-based inequities, such as mandatory universal coverage plans, dropout provisions for child-rearing years, and survivor benefits. These features demonstrate how thoughtful policy design can help reduce pension inequities while still maintaining a connection to workforce participation.
  2. Promote comprehensive workplace policies. Workplace policies such as equal pay audits, paternity leave, and flexible work arrangements can help remove systemic barriers that impact women’s participation and advancement in the labour market. Strengthening policies that support equitable earnings and career opportunities will contribute to narrowing both the gender wage gap and, over time, the gender pension gap.
  3. Organize with key players and measure outcomes. Success requires coordinated action across the government, employers, and pension providers, guided by clear timelines, measurable outcomes, regular monitoring of key metrics, and a commitment to continuous improvement. It is critical we understand that the gender pension gap is not a women’s issue – it is a structural issue that affects economic security for all.

 

To learn more about the gender pension gap, download our report on Understanding the Gender Pension Gap in Canada.

Visit https://payequity.gov.on.ca/what-we-do/ for more information about the Pay Equity Office.

Ontario’s Pay Equity Office Reflects on Groundbreaking Report: “The Gender Pension Gap”2026-08-19T14:27:54-05:00

Women and Skilled Trades: What’s the Trade-Off?

Employers of skilled trades workers are struggling to find the workforce required to complete their projects, causing delays and millions in lost revenue. There’s one way to address this: widen the talent pool by including more women in skilled trades. It’s been well documented and discussed that women’s lack of participation in the skilled trades is a significantly costly labour gap, considering the high labour demand across several industries.

Women entering the trades is, of course, a restructuring of our “traditional” sex-segregated labour market. Since the industrial revolution and the formation of a mass paid labour market, work was constructed through political and social policy. Through protective labour laws that only applied to women, including night work and overtime prohibitions for women, explicit bans of women working in certain industries, bans on women’s professional certifications, and marriage bars (yes, women who married were required to resign from teaching, clerical and banking), wage suppression for “women’s work,” our present sex-based clustering and compensation models are a result of policy decisions – not natural “skill and ability.”

It’s why we need policies like the Pay Equity Act, and those set out in the various Working for Workers Acts to correct structures and problems created by outdated policies from the late 1800s to early 1900s.

That brings us back to the demand for skilled trades. The most recent Ontario Building and Construction Tradeswomen (OBCT) survey found that the majority of tradeswomen see a future for themselves in the construction industry over the next two to five years.

Take construction as an example, which is one of the top industries employing skilled tradespeople across a variety of roles. According to a 2025 BuildForce Canada report, women comprise only 5% of the tradespeople employed in construction in Ontario. If employers do not want to lose out on viable workers and profits, they should reconsider century-old practices that no longer serve their sector or the reality of today’s labour market.

The Pay Equity Office has looked closely at the issues preventing women from succeeding in skilled trades. The issues are complex and varied. While some can be addressed by government intervention, others can be supported by employers who are anxious to meet their labour demand and expand their approaches to hiring.

Based on our research and observations, we have five suggestions to help address employers’ labour shortages by supporting women’s career trajectories in the skilled trades.

  1. Building a respectful, safe workplace: Addressing and preventing biases, sexism, and harassment on-site is a crucial component to women’s safety and sense of belonging on worksites and now law under the Employment Standards Act anti-harassment requirements. Sexism and bias are built into several trades because of outdated policies that regulated women and men’s work. These need to be addressed. The recent OBCT survey found that over half of respondents reported experiencing harassment. Notably, 51% of respondents who experienced and reported harassment were dissatisfied with how their complaints were handled. Proactive efforts to prevent harassment are influential; staff should be provided training to understand, identify, prevent, and report harassment.
  2. Ensuring fair compensation: Compensation is the age-old motivation factor to attract and retain talent. Money talks, and it communicates employers’ value of specific roles and skill sets. We know that women are making less than men in the skilled trades. Providing transparent and equal pay for work of equal value can attract and motivate staff. To start the journey to pay equity, the Ontario Pay Equity Office implores employers to visit the Pay Equity Solution for Small Business Do-It-Yourself Toolkit.
  3. Communicating inclusive values in job postings: Employers’ efforts to ensure staff feel included starts with the language used and the supports listed in the job posting. Using inclusive language in job posts can signal to candidates your company’s values of inclusion in the workplace. Advertising supports like childcare and harassment training/policies can help employers differentiate themselves by getting ahead of the barriers female candidates face. Employers can utilize the Ontario Pay Equity Office’s Gender Neutral Job Ads resource to craft inclusive job postings.
  4. Showcasing clear pathways to leadership: Visible representation of women in leadership roles is critical for retaining tradeswomen. It demonstrates viable career progression. One third of tradeswomen who responded to the OBCT survey reported “gender biases in decisions” as a top barrier to advancement. Addressing biases and ensuring decisions are merit-based can help women hold leadership roles in the trades. This visibility is especially important for youth entering the trades, as seeing women in leadership roles can inspire confidence and encourage them to pursue long-term careers in the sector.
  5. Addressing childcare barriers and offering supports: Last, but not least, offering crucial wrap-around supports for barriers such as childcare would aid women’s ability to work on-site. Over half of tradeswomen with children reported in the OBCT survey that incompatibility with childcare arrangements led to turning down work. Providing on-site childcare, with extended hours and coverage in rural areas, would be significant in addressing this barrier. If employers cannot provide these supports, they can consider offering scheduling flexibility to workers who may not be able to work extended hours due to their childcare arrangements.

The trade-off for having more women in trades is having to look at and challenge the century-old policy and social constructs that defined who does what kind of work. To build a better workforce, employers in in-demand fields can challenge outdated assumptions, policies and workplace practices to engage women in the trades as part of a vital and respected part of their labour force.

Women and Skilled Trades: What’s the Trade-Off?2026-08-19T14:30:20-05:00

PEO releases Theory of Change for Achieving Equal Pay for Work of Equal Value

September 18, 2025

Today marks International Equal Pay Day and the Ontario Pay Equity Office (PEO) is publishing a new report, Theory of Change for Achieving Equal Pay for Work of Equal Value, highlighting global best-practices to closing the gender wage gap. Adding to its rich collection of research, this publication will be shared as a contribution to the Equal Pay International Coalition (EPIC). In a world where the gender pay gap averages 20% globally, the publication is a roadmap for stakeholders at every level, including employers, unions, governments, civil society organizations, international agencies, and academia, to support achieving equal pay for work of equal value.

The gender pay gap refers to differences between men’s and women’s hourly, weekly, monthly or yearly earnings. In Ontario the gender pay gap was last measured at 13%. The global gender pay gap is significant and is one of the clearest displays of gender inequality in the workplace. The International Labour Organization found that, on average, women earn about 20% less than men.

“We published this Theory of Change because we know that through targeted, collaborative, and comprehensive approaches to address the drivers of the gender pay gap, governments and key stakeholders can drive systemic change where equal pay is the norm, not the exception,” explains Kadie Philp, Commissioner and CAO of Ontario’s Pay Equity Office.

Reflecting the publication’s value, the EPIC Secretariat remarked: “The Equal Pay International Coalition Secretariat is delighted to welcome the Theory of Change prepared by the Ontario Pay Equity Office (PEO), Canada, for use by EPIC members and all partners committed to advancing pay equity. We extend our deepest thanks to PEO and to the EPIC members whose contributions shaped this substantive, field ready tool, which will support concrete and measurable progress toward equal pay for work of equal value.”

Closing the gender pay gap and achieving equal pay for work of equal value is crucial to promote fairness, uphold human rights, and nurture economic growth. Economically, gender parity in the workforce could add up to US$7 trillion to the global economy, raise GDP per capita globally by 20%, and increase global GDP by US$2 trillion. Closing the gender pay gap also reduces poverty, boosts women’s workforce participation, and fosters inclusive growth.

The Theory of Change is being launched at the Equal Pay International Coalition Technical Meeting where global leaders will converge to learn from international best-practices in policies and programs to close gender pay gaps.

PEO releases Theory of Change for Achieving Equal Pay for Work of Equal Value2026-07-23T13:24:26-05:00

Theory of Change for Achieving Equal Pay for Work of Equal Value

Download Ontario’s Groundbreaking Theory of Change

The Pay Equity Office (PEO) of Ontario introduces the new Theory of Change for Achieving Equal Pay for Work of Equal Value, a comprehensive guide for policymakers, employers, unions, and advocates.
This resource, launched in conjunction with International Equal Pay Day and shared with Equal Pay International Coalition (EPIC), distills global best practices for overcoming the gender pay gap, which averages 20% worldwide and 13% in Ontario.

Why Download This Report?

  • Discover evidence-based solutions tackling seven root causes: undervaluing women’s work, low workforce participation, educational and job segregation, discrimination (including intersectional impacts), the care penalty, lack of pay transparency, and limited unionization and collective bargaining.
  • Gain insights from real-world case studies in Ontario, Japan, Luxembourg, Australia, New Zealand, the EU, Sweden, South Africa, Spain, and Iceland.
  • See the economic and social benefits of pay equity: up to US$7 trillion added to the global economy, 20% higher GDP per capita, lower poverty, and boosted workforce participation.

Solutions include:

  • Gender-neutral job evaluation and legislation
  • Expanded childcare, parental leave, and flexible work policies
  • Targeted STEM education initiatives
  • Pay transparency mandates, regular audits, and action plans
  • Strong union representation and inclusive bargaining agreements
Theory of Change for Achieving Equal Pay for Work of Equal Value2026-08-19T14:32:18-05:00

Pop Culture and Pay Equity: Season Three of Level the Paying Field to Explore Pervasive Pay Gaps

TORONTO, May 7, 2025: Gendered representations and characterizations abound in pop culture. From television, music, sports, video games, and art, women are both the creators and consumers of pop culture. A third season of Level the Paying Field reveals that both the stories that are told and the production behind them are not always gender equitable.

Building upon the success of seasons one and two of the award-winning podcast, Level the Paying Field, season three explores topics related to economics, equity, women, work and wage equity. This season, the Ontario Pay Equity Office convenes leading experts and content creators to reveal hidden biases in both pop culture narratives and the gender pay gap for content creators.

“Gender bias is pervasive in so many aspects of our society,” says Kadie Philp, Commissioner and CAO of the Pay Equity Office. “Especially in television, music and pop cultural content where we may not notice how the bias presented on screen, in video games, or on gallery walls creates and reinforces harmful gender stereotypes.”

Through the series, Ontario’s Pay Equity Office seeks to highlight how looking critically at the pop culture products we consume and participate in may help us see and correct the gender-based biases that contribute to creating and justifying gender pay gaps.

“We want listeners to think critically about how the media they are consuming in various pop culture platforms may be promoting gender inequalities. Each of our guests is either an expert researcher or a cultural content creator who gives us a behind-the-scenes look at gender bias in production and content,” says Philp.

Join the Pay Equity Office in elevating the equity conversation to make the world a more equitable place for women to work, live and thrive, and support closing the gender wage gap.

Watch episodes of Level the Paying Field at www.levelthepayingfield.ca or listen wherever you download your podcasts.

Quick Facts:

  • Level the Paying Field is a six-part video and podcast series covering topics related to economics, equity, women, work, and money, with a focus on the gender wage gap (GWG).
  • In 2022, the podcast was recognized with a Gold Quill Award of Merit from the International Association of Business Communicators.
  • Level the Paying Field ranked in the top 100 podcasts in the Careers category in Canada.
  • The gender wage gap (GWG) is the difference between wages earned by men and wages earned by women. There are different ways to measure the GWG.
  • In Ontario, the GWG, calculated based on average hourly wages, is 13%. This means that for every $1.00 earned by a male worker, a female worker earns 87 cents. Calculated using average annual salary earnings, the GWG is 25%, or 75 cents on the dollar.

What You’ll Hear This Season:

  • How television evolved from housewife sitcoms to feminist storylines—and what Lucille Ball and Shonda Rhimes have in common when it comes to shaping narratives.
  • A look into the music industry, from the blues women of the 1920s to Beyoncé and Taylor Swift, tracing how women have used music to resist, reclaim, and revolutionize.
  • Olympian Haley Daniels discusses her fight to gain recognition for women’s canoeing, illustrating how policy, passion, and persistence intersect when women demand equal footing in sports and equal pay.
  • Although nearly half of all gamers are women, only 23% of game developers are female. We unpack how gender gaps persist in gaming—and how women are changing that from the inside out.
  • Dive into the world of fine art, motherhood, and activism through photography with Alexa Mazzarello, exploring how gender bias and care work impact the creative careers and income potential of women artists.

Season 3 proves that culture isn’t soft power—it’s real power. And if we want pay equity, we need to Level the Paying Field everywhere—on the screen, behind the scenes, in the arena, and in the systems we use to value work.

Listen Now

Level the Paying Field is available at www.levelthepayingfield.ca, on YouTube, Spotify, Apple Podcasts, and wherever you download your podcasts.

About the Pay Equity Office

The Pay Equity Office works to close the gender wage gap in Ontario. Through education, outreach, and enforcement, the Office promotes fair pay practices and supports inclusive workplaces.

Pop Culture and Pay Equity: Season Three of Level the Paying Field to Explore Pervasive Pay Gaps2026-08-27T08:38:25-05:00
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