Toronto- A new survey shows that Canadian employers are planning for the biggest pay raise in 20 years. This is because they are trying to deal with inflationary pressures, rising interest rates, the risk of a recession, and a tight labor market.
According to a report from consulting firm Eckler Ltd., the national average base salary increase for next year is expected to be 4.2%, excluding planned salary freezes. This is the same as the actual base salary increase for 2022. The expected salary increases for 2022 were less than what happened.
The average salary is expected to go up the most in British Columbia, Ontario, and Quebec, and the least in the Yukon, Nunavut, and Prince Edward Island.
The average salary increase is most likely to be 5.4% in the technology sector.
The sectors of education, health care, agriculture, and hospitality are expected to see the least growth.
Anand Parsan, who is in charge of Eckler’s national compensation practice, said it has been hard to figure out salaries for 2023.
The survey results also show that Canadian companies plan to use pay as a key part of their talent management strategy, with only 1% of companies saying that they plan to freeze salaries in 2023.
Also, 44% of companies still don’t know what their salary budgets will be for 2023.
New research from talent solutions and business consulting firm Robert Half found that salary is still the most important thing for Canadian workers, with 57% of professionals saying they feel underpaid.
The research showed that 34% of workers plan to ask for a raise by the end of the year if they don’t get one or if the amount is less than expected. Also, 37% would think about changing jobs for a 10% pay raise.
Salary increase next year
47 % of professionals are more likely to ask for a higher starting salary now than they were a year ago.
The research also showed that employers are upping the ante when it comes to paying, with 42% of them offering higher starting salaries.
Furthermore, 79 percent of managers who increased the base pay for new hires in the previous year also changed pay for existing employees.
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