Here’s some good news for Canadian workers, your paycheques are going up.
The period of low unemployment that Canada has been experiencing over the past year or so is starting to pay off in terms of salaries, as companies struggle to recruit the staff they need. In the latest Labour Force Survey, Statistics Canada reported that wage growth had increased to its highest level in over a decade.
The higher paycheques — measured by year-over-year average hourly pay increases for all employees — saw the greatest monthly gains since January 2009.
The trend isn’t expected to end any time soon. A recent survey of Canadian employers by Mercer found that nearly sixty per cent (57%) say that they plan to increase salary budgets throughout 2020.
The average wage spending had already increased by 2.6% in 2019, and the majority of employers surveyed say that they plan the same rate of pay increase for 2020. A further 22% indicated that they are budgeting for even greater pay increases next year.
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The Mercer survey also found that more of the money targeted towards keeping key players rather than being distributed across all staff. The majority of organizations say that they are boosting their annual salary increase budget to remain market competitive (79%) and reward individual performance (73%) while just under than half (47%) plan it for retaining employees.
“Getting compensation right is critical to your employee value proposition,” said Gordon Frost from Mercer Canada. “When you have the right compensation strategy in place, you can bolster employee retention and build a thriving workforce.”
While Canadian companies are finding it increasingly difficult to find and keep the staff that they need, this could be the right opportunity to ask for the raise you deserve. Here are our top tips for negotiating a higher salary.