Amidst the ongoing worker shortage, employers in Canada continue to invest in their pay increase budgets. Employers are doing this to adapt to Canada’s highly competitive job market. Darcy Clark, the senior principal for compensation at Normandin Beaudry, made this statement.
About 48% of Canadian employers said they’re raising their salary budget this year. This finding is according to a recent survey by Normandin Beaudry. The survey taken by 440 employers showed that 43% of them have set aside an average of 1.2% in extra funds for salary raises.
The respondents stated their main reasons for the salary budget raise. According to Canadian Visa Professionals, one of the reasons is market adjustments. Other factors are the need to retain strategic positions and workers at risk of leaving.
Details on the Normandin Beaudry Survey
The survey further revealed that employers are projecting an average budget increase of 4.7% to allow for salary increases this year. Employers in Quebec and Ontario with privately-held businesses and not-for-profit companies are predicting the highest budget raises.
Quebec organizations are projecting to increase their budgets for non-unionized employees by 5.1%. At the same time, there will be an extra budget raise of 1.5%.
In Ontario, non-unionized workers hope to get a salary raise in 2023. Canadian Visa Professionals reported that the province is projecting a revised budget increase of 4.2% and an extra budget raise of 1.4%.
The Current Forecast for Canada's Average Salary Structure in 2023
The report by Normandin Beaudry revealed that the projection for a rise in the average salary structure in Canada this year is now at 3.2%. This forecast is higher than the 3.0% forecast reported last summer.