Average salary in Canada could jump 4.2% next year, employers say – National

Canadian employers are expecting the largest wage increase in two decades as they try to balance inflationary pressures, soaring interest rates, recession risks and a tight labor market, according to a news report. investigation.

According to the report by consultancy firm Eckler Ltd., the national average base salary increase for next year is projected at 4.2%, excluding planned salary freezes, which is in line with actual base salary increases of 2022. Planned salary increases for 2022 were lower than actual figures.

British Columbia, Ontario and Quebec are planning the highest average wage increases, while the Yukon, Nunavut and Prince Edward Island are planning the lowest.

The largest average salary increases are expected to be in the tech sector at 5.4 percent.

The smallest increases are expected in the education, healthcare, agriculture and hospitality sectors.

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Anand Parsan, national compensation practice leader at Eckler, said salary planning for 2023 was fraught with complexity.

The survey results also show that Canadian organizations plan to use compensation as a key part of their talent management strategy, with only one percent of organizations reporting a planned salary freeze for 2023.

Additionally, 44% of organizations remain undecided on salary budgets for 2023.

Meanwhile, new research from talent management solutions and business consulting firm Robert Half found that pay remains a priority for Canadian workers, with 57% of professionals saying they feel underpaid.

The study found that 34% of workers plan to ask for a raise by the end of the year if they don’t get one or the amount is less than expected, while 37% would consider changing jobs. job for 10% salary increase.

Forty-seven percent of professionals are more likely to ask for a higher starting salary today than 12 months ago.

The research also showed that employers are stepping up their compensation efforts to win over talent, with 42% offering higher starting salaries.

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Additionally, 79% of managers who increased base pay for new hires in the past year also made salary adjustments for current staff.

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© 2022 The Canadian Press

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