According to a new survey, Canadian employers anticipate higher salaries in two decades as they balance inflationary pressures, soaring interest rates and recession risks.
According to the report by consulting firm Eckler Ltd., the national average base salary increase for next year is projected at 4.2 percent, excluding planned salary freezes, which is consistent with the actual base salary increase in 2022. There was a decrease in the projected salary increase for 2022 compared to the actual salary increase.
As far as average salary increases are concerned, British Columbia, Ontario, and Quebec are expected to have the highest increases, while Yukon, Nunavut, and Prince Edward Island are expected to have the lowest increases. At 5.4 percent, the technology sector is expected to experience the highest average salary increases.
Agricultural and hospitality sectors are expected to experience the smallest increases.
Salary planning for 2023 has been complicated, according to Eckler’s national compensation practice leader Anand Parsan.
Just one percent of Canadian organizations plan to freeze salaries in 2023, according to the survey results. Compensation is a key part of talent management for Canadian organizations.
In addition, 44 percent of organizations have not decided how to budget salaries for 2023. 57 percent of Canadian professionals say they feel underpaid, according to a new study by talent solutions and business consulting firm Robert Half.
If their salary is not raised or the amount is less than expected by the end of the year, 34 percent of workers will ask for a raise, while 37 percent will consider switching jobs if their pay is doubled.
A higher starting salary is more likely to be requested by 47 percent of professionals today compared to 12 months ago.
As part of the research, employers are offering higher starting salaries to attract talent, with 42 percent offering higher starting salaries. As well as increasing base salaries for new hires, 79 percent of managers adjusted salaries for current employees in the past year.