Why pay transparency matters for nonprofits and workers

Connect Nonprofit Jobs (Connect Jobs) was launched in 2014 to connect job seekers passionate about the sector with paid nonprofit positions. Members of the Ontario Nonprofit Network post their jobs for free and we promote them to our tens of thousands of supporters. Our vision for Connect Jobs is to be a platform that can help build a stronger and more resilient nonprofit sector. 

At ONN, we believe the key to recruiting and retaining top talent is by implementing decent work into all policies and processes. We have learned that when our sector’s workers can access decent work, not only do they do well, but organizations are better equipped to meet their missions, and as a result, our communities thrive. This is why going forward, all new job postings on Connect Jobs must disclose the salary or pay scale for a position. 

Pay transparency is one of many decent work practices that can lead to improved employee morale, organizational loyalty, and engaging work cultures in our sector. By pioneering pay transparency, Connect Jobs can become known as a job portal for top talent to find employers who are on the decent work journey and value nonprofit sector professionals.

Benefits of supporting decent work practices on Connect Jobs:

1. Reducing the gender wage gap for the sector

Through our decent work for women research, we learned that women workers in Ontario’s nonprofit sector experience a gender wage gap. In our recent survey of Ontario nonprofit workers, 41 per cent of respondents said their wages in the nonprofit workplace somewhat reflected their job description while 21.2 per cent said not at all. Equitable compensation practices such as pay transparency can help reduce the gender wage gap and address systemic barriers that women, especially marginalized women, face in compensation. Read our Bridging the Gap Equitable Compensation Practices Guide to discover more equitable compensation practices that your nonprofit can implement.

2. Saving time and resources for job seekers

When salary ranges are disclosed on postings, job seekers have an easier time identifying whether they are an appropriate candidate and whether the position and its compensation are the right fit. This is a more efficient hiring process for both applicants and hiring staff. 

3. Helping organizations recruit top talent, save money, and further their missions

Between succession planning, high turnover, and constrained resources, recruiting and retaining top talent in the nonprofit sector is a challenge costing organizations time, money, and limited resources. According to a study by the Center for American Progress, the direct costs associated with turnover is 20 per cent of the annual salary for the average employee (those earning CAD 40,000 to 66,000 a year) and over 200 per cent for executive-level employees! This doesn’t include indirect costs such as onboarding, hiring costs, and lost productivity. Pay transparency reduces an organization’s costs by lowering their turnover. How? Pay transparency minimizes the disconnect between salary expectations and reality. Giving employees a sense of a “fair playing field” at the beginning and a clear understanding of their career and pay trajectory can make them more likely to work for the organization longer. 

At the same time, pay transparency helps organizations recruit top talent by indicating to job seekers that the employer already values and respects their time. Participants in decent work and decent work for women research have indicated that pay transparency would make more leaders, especially emerging leaders, want to join and grow a career in the nonprofit sector. 

The end result? Nonprofits can save valuable time and money and build stronger teams to support their missions and strengthen the communities they serve.

How can I post on Connect Jobs? 

Connect Jobs is an exclusive membership benefit, which means only ONN members can post jobs. Once a member, you have the opportunity to post an unlimited number of jobs for free. Job seekers can access the site for free.

Learn more about Connect Jobs and what it means to be a member with ONN. 

Join the Ontario Nonprofit Network and start recruiting top talent today!

Or contact our Communications Coordinator, Rishit at [email protected].

Additional resources for employers and job seekers

Increasing pay transparency is one step of many needed to integrate decent work practices into the hiring process. Here are some additional resources to help you better understand and incorporate decent work:

  1. Bridging The Gap Equitable Compensation Guide
  2. Blog: Casting light on decent work opportunities for young nonprofit workers
  3. Become a Decent Work champion
February 3, 2020 at 11:28 am
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