Ontario’s Bill 190, part of the Working for Workers Five Act, is poised to bring significant changes to the way retailers in the province handle job postings, salary disclosures, and candidate interactions.

In an exclusive interview with Suzanne Sears, founder and President of Best Retail Careers International and Luxury Careers Canada, she shared insights on how these changes will impact the retail industry in Ontario and its workforce. With new rules focused on transparency and fairness, Sears explains the implications for retailers and the broader job market. Bill 190 is an amendment to the Ontario Employment Standards Act of 2000, Part 3.

Salary Transparency: A Double-Edged Sword for Retailers

One of the most discussed provisions of Ontario Bill 190 is the mandatory disclosure of salary ranges in job postings. According to Sears, this requirement aims to address wage inequality, particularly for women and minority groups who have historically earned less than their counterparts. In retail, where wages have traditionally been flexible, the change is expected to challenge employers in balancing transparency with the need to manage labor costs.

“Retailers are already facing increased wage pressures, especially with the recent minimum wage hike to $17.20 per hour,” explains Sears. “Now, having to post salaries or salary ranges could lead to wage inflation. Employees who see job postings with higher wages than they’re currently earning will expect pay adjustments, which could create internal discord and strain budgets.”

She said that for instance, if a retailer advertises a position at $20 per hour, existing employees may demand a similar rate, creating a ripple effect across the organization. Sears notes that while transparency is necessary for wage equity, it could complicate operational costs for retailers already grappling with economic challenges.

How Ontario Bill 190 Aims to Address Wage Inequality

The bill’s focus on salary transparency is part of a larger effort to tackle wage inequality. Sears said that for years, women and minorities have earned less than men in similar roles, particularly in industries like retail. By enforcing wage disclosure, Bill 190 hopes to level the playing field and ensure that all candidates, regardless of background, receive fair compensation.

Sears believes this could be a game-changer for retail. “Retail has long been a space where wage disparities exist, especially in mid-level and senior management roles. By making salaries public, it encourages employers to be more consistent and fair in their compensation practices,” she says. However, Sears also acknowledges the concerns many retailers have about rising labor costs and the potential for wage inflation as a result.

False Job Postings and Increased Efficiency in HR

Another significant amendment in Bill 190 is the requirement for accurate job postings. In many large retail operations, automated applicant tracking systems (ATS) are set to post jobs when an employee leaves, even if there’s no immediate need to fill that position. According to Sears, this often leads to a flood of applications for non-existent jobs, wasting both the candidates’ time and the HR department’s resources.

“False job postings create confusion and inefficiencies,” says Sears. “Now, with Bill 190, retailers must ensure that only real, available positions are posted online. If they don’t, they risk facing fines, and that will push HR teams to be more diligent in their hiring processes.”

Sears sees this as a positive development for both employers and job seekers, as it will reduce the number of irrelevant applications and streamline the hiring process. By ensuring job postings are accurate and up to date, she says retailers can focus on hiring qualified candidates without being overwhelmed by unnecessary applications.

The Role of AI in Retail Hiring and New Compliance Measures

The use of artificial intelligence (AI) in hiring has been growing across industries, including retail hiring. However, Sears highlights how AI tools, while efficient, have also created issues in diverse workforces like Canada’s. AI-driven recruitment tools, which screen resumes and conduct initial interviews, have sometimes led to unintentional bias, screening out candidates with non-native accents or from minority backgrounds.

Bill 190 now requires retailers to inform candidates upfront if AI will be used during the hiring process. Sears views this as a critical step toward transparency.

“In Canada, we have a diverse workforce, and AI systems are not always equipped to handle that diversity fairly. Many candidates with accents or unique cultural backgrounds have been unfairly screened out,” she explains.

By mandating that retailers disclose AI use in hiring, the bill encourages more fairness and gives candidates the opportunity to know exactly how their application will be processed. “AI should assist in the hiring process, but it shouldn’t replace human judgment, especially in such a diverse market like retail,” says Sears.

Enhancing Candidate Communication and Reducing Ghosting

One of the most frustrating aspects of job hunting, especially in the retail sector, has been the issue of “ghosting”, says Sears, where candidates are left without any communication after applying for a job or even attending interviews. Bill 190 introduces new rules requiring employers to notify candidates about the status of their application, whether they are successful or not.

“Ghosting has been a significant issue in retail,” Sears says. “Candidates, especially those applying for entry-level positions, often feel disrespected when they don’t hear back from employers. Bill 190 ensures that employers must follow through and communicate with all candidates they engage with, improving the overall job-seeking experience.”

For retailers, this means adapting their hiring processes to ensure that every candidate receives timely feedback. Sears believes this will help retailers maintain a positive brand image. “When candidates have a good experience, even if they don’t get the job, they’re more likely to stay loyal to the brand. On the flip side, negative experiences can harm a retailer’s reputation.”

Equal Opportunity for New Canadians

Bill 190 also tackles the issue of requiring “Canadian experience” for job applicants—a barrier that has prevented many skilled immigrants from securing jobs in their field. Sears notes that this provision will open doors for new Canadians who have the qualifications and skills but have been overlooked due to a lack of local experience.

“In retail, we rely heavily on immigrant workers, both in entry-level roles and in management,” says Sears. “By removing the ‘Canadian experience’ requirement, Bill 190 ensures that all candidates are judged on their abilities and not an arbitrary job requirement.”

This change is expected to have a significant impact on the retail sector, which has been facing labor shortages. By tapping into a broader talent pool, retailers can fill key positions with highly qualified candidates, including those from diverse backgrounds.

Conclusion: Preparing for Change in Retail Hiring

While Ontario Bill 190 presents challenges for retailers—particularly around wage transparency and compliance—it also offers long-term benefits. As Suzanne Sears points out, the bill encourages greater fairness, transparency, and efficiency in hiring, which could lead to stronger employee retention and a more diverse workforce.

Retailers in Ontario will need to adapt quickly to these new regulations when put into force, but the benefits of improved candidate experience, wage equity, and streamlined hiring practices could outweigh the initial hurdles, says Sears. As other provinces consider similar legislation, Ontario’s retail sector may serve as a model for how to successfully implement these important changes, she notes.

More Retail Insider Articles with Suzanne Sears:

Podcast [Interview] Suzanne Sears Discusses Retail Staffing Challenges Last Year and 2023 Predictions

Podcast [Interview] Suzanne Sears Discusses Retail Staffing into 2023

New Canadians Need to be Welcomed into the Retail Workforce as Industry Shifts [Podcast]