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/.



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