Personal Finance

Posthaste: Here come the raises — Employers planning biggest wage hikes in 20 years

September 28, 2022
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The average pay rise across the country is set to be 4.2% higher in 2023, according to the survey of employers

Canadian employers plan to dish out the biggest pay raises in two decades next year.
Canadian employers plan to dish out the biggest pay raises in two decades next year. Photo by Getty Images/iStockphoto

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Canadian employers, eyeing a tight job market and anticipating the impact of high inflation, are planning big raises for their employees.

According to a survey by Eckler Ltd., a compensation consultancy, the average pay rise across the country is expected to be 4.2 percent higher in 2023, excluding disruptions. That’s the biggest increase in 20 years, the group said, and matches actual wage increases already handed out this year.

Workers in Ontario, British Columbia and Quebec are likely to receive the largest pay rises at 4.1 percent, the survey finds, while pay rises in the Yukon, Nunavut and Prince Edward Islands are the lowest at 3.2 percent and 3.5 percent, respectively will.

Only 1 percent of organizations expect salaries to be frozen next year, Eckler said. A further 44 percent are waiting before enforcing salary increases for 2023.

Companies have had a particularly difficult time planning for pay rises this year as the economy sent mixed signals. The job market remains tight, with over a million jobs waiting to be filled in the second quarter — a record high, Statistics Canada said this week. At the same time, raising interest rates to curb rising inflation is causing economic difficulties for many. A recession is also a threat, and economists at the Royal Bank of Canada are predicting a downturn next year.

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Meanwhile, workers want pay rises to keep up with the rising cost of living and believe the tight labor market has the upper hand in negotiations. A separate survey by Robert Half Canada suggests that employers may soon be receiving a large number of salary requests from their employees. More than half of professionals (57 percent) feel underpaid, and 34 percent plan to speak out if they don’t see a big enough pay rise by the end of the year.

Nearly four in ten say they would consider quitting if they could get at least a 10 percent raise elsewhere.

But if managers think higher salaries alone are enough to keep employees happy, Eckler says they should think again.

“If you want to become an Employer of Choice, the employment offering has to be more holistic,” Chris Brisebois, head of Eckler’s largest pensions and benefits consulting practice, said in a press release.

In addition to pay increases, HR departments also plan to focus on key areas such as diversity, equal opportunity and inclusion programs, talent retention and employee retention opportunities, the survey said. This approach, combined with raises, will help employers differentiate themselves in the battle for talent, Brisebois said.

“If employees don’t recognize that there is value in the rewards you offer, you may be less likely to attract and retain the talent you need to achieve organizational goals,” he said.

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Mohamad Fakih is embroiled in a legal battle to retain his position as CEO of Paramount Fine Foods, the grocery and restaurant chain he founded in 2007.

FOOD BATTLE A troubled business partnership has turned into a heated court battle involving prominent businessman and recipient of the Order of Canada, Mohamad Fakih, as an executive and director of Paramount Fine Foods, the Lebanese food and restaurant chain he founded in 2007 shortly after emigrating established in Canada, could be deposed. Documents filed in the Ontario Superior Court of Justice as part of a protracted legal battle that began last year on behalf of investors AHM Investments Corp., Ali Noureddine and Mirza Naeem Javed accuse Fakih of running the company without consulting them, despite their controlling interest to have led. and to use it for personal gain “at the expense of the company.” The Financial Post’s Jake Edmiston and Barbara Shecter report. Photo by Ernest Doroszuk/Toronto Sun/Postmedia

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  • The International Monetary Fund will release a detailed review of the Bank of Canada’s transparency practices. At the same time, the bank will publish its position on the report’s recommendations
  • The Surface Transportation Board will hold a three-day public hearing in Washington on the proposed merger between Canadian Pacific (CP) and Kansas City Southern (KCS).
  • The Canadian Securities Administrators (CSA) will host a virtual roundtable on the proposed derivatives code of conduct, the CSA’s next step in modernizing the regulatory framework for the OTC derivatives market in Canada
  • Steven Guilbeault, Secretary of Environment and Climate Change, will deliver an opening address and participate in a chair discussion at the Great Lakes Public Forum in Niagara Falls
  • Marie-Claude Bibeau, Minister of Agriculture and Food, will hold a media recall at the conclusion of the G20 Agriculture Ministers’ Meeting in Bali
  • The Bloomberg Canadian Finance Conference takes place September 28-29. This two-day virtual event aims to provide a broad overview of Canada’s financial and business landscape
  • RDEE Canada will host the National Summit on Francophone Minority Economies in Ottawa. This summit brings together stakeholders from the French-speaking Canadian business community
  • Standing Federal Treasury Committee Meets in Ottawa on Inflation in Current Canadian Economy; Transportation, Infrastructure and Communities Standing Committee Meets to Reduce Bureaucracy and Costs at Rural and Urban Canadian Airports; Standing Committee on Agriculture and Food meets on global food insecurity
  • Data from today: Canada’s National Tourism Indicators, US Trade in Goods Balance, Pending Home Sales, Wholesale and Retail Inventories

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UK equity and bond markets have collectively lost at least $500 billion since Liz Truss took over as Prime Minister, with investor confidence shaken by a shock tax cut budget.

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The Truss government’s new fiscal policy took the helm at a time when the UK economy was already grappling with the specter of recession, raising concerns that inflation and borrowing would surge at a time of rapidly rising interest rates. This sparked such a sharp cross-asset sell-off that the pound fell to record lows, prompting talk of emergency measures by the Bank of England.

“Confidence in the UK has been hurt by a stack of worries about the economic outlook and the direction the Truss administration is taking,” said Susannah Streeter, senior analyst at Hargreaves Lansdown. “Only a reversal in austerity should significantly restore optimism, but the government is digging on its heels.”

– Bloomberg

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Being self-employed is a dream for many people. You can choose your work schedule, do something you care about and be your own boss. But while full-time freelancing offers greater flexibility, there are costs prospective entrepreneurs may not be aware of. Barry Choi, in his latest report for MoneyWise Canada, outlines the top expenses entrepreneurs should be aware of.

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Today’s post has been written by Victoria Wells (@vwells80), with additional coverage from The Canadian Press, Thomson Reuters and Bloomberg.

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