That long-awaited salary increase we’ve all been hoping for is expected to land in 2023.
According to two new reports published Tuesday, one from consulting firm Eckler Ltd., and the other from recruiting firm Robert Half, many Canadians can expect a salary bump next year.
The national average base salary increase for 2023 is projected at 4.2 percent, excluding planned salary freezes, according to the Eckler survey.
Ontario, British Columbia and Quebec are projected to see the highest average salary increase at 4.1 per cent, while Yukon, Nunavut and Prince Edward Island will see the lowest.
The largest increases are expected in the technology sector at 5.4 percent, membership organizations and professional associations at 5.3 percent, media and telecommunications at 5.1 percent and construction at 5.1 percent.
The smallest increases are expected in the education sector, 2.5 percent, health care, 2.7 percent, agriculture, 3.4 percent and the hospitality sector, 3.5 percent.
“It has been at least two decades since we’ve seen a (salary) increase this high,” said Anand Parsan, Eckler’s national leader.
However, he cautioned that wage hikes won’t necessarily increase buying power.
“Inflation is now outpacing the salary increases,” Parsan said. “While you are getting an increase, in the long run it might not be the best of news because the prices at the grocery store, the gas pumps and everything else that we’re purchasing is going up but at a higher rate.”
The consumer price index rose by 7.0 per cent in August, compared to a year earlier, according to data released by Statistics Canada this month. This is down from June, when the inflation rate hit 8.1 percent, a 39-year high. But Canadians are paying 10.9 per cent more at the grocery store than they did a year earlier, the highest annual food inflation rate since August 1981.
Companies come under pressure to higher compensation to staff and to recruit skilled workers, new research from Robert Half found that 42 per cent of employers are offering higher starting salaries, while 57 per cent of professionals saying they feel underpaid.
The research found that 34 percent of workers plan to ask for a raise by the end of 2022 if they don’t get one before or the amount is lower than expected, while 37 percent would consider changing jobs for a 10 percent increase in pay.
Forty-seven per cent of professionals are more likely to request a higher starting salary today compared to 12 months ago.
The research also showed that employers are stepping up when it comes to compensation in order to win over talent, with 42 percent offering higher starting salaries.
Similarly, the Eckler survey results show that Canadian organizations plan to use compensation as a key part of their talent management strategy with just one per cent of organizations reporting a planned salary freeze for 2023. Additionally, 44 percent of organizations remain undecided about salary budgets. is 2023.
Sandra Lavoy, the regional director at Robert Half, said she has seen salary increases in construction, IT, and the service industry.
Lavoy said in her 27 years as a recruiter, this has been the most challenging market she has worked in because employees are taking their time to make decisions and weigh their options.
Employees hold all the power, said Lavoy, “They know what they’re worth. It’s not like 10 years ago or five years ago where they weren’t sure,” she said.
“They’ll get multiple offers, or they’ll decide they want to work remote fully or they don’t want to go in one day a week. Right now, people are digging their heels in about going back in the office,” Lavoy said.
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