Yahoo Finance 2024 SALARY INCREASES: BUDGETS REMAIN HIGH
INCREASES OF 3.6% FORECASTED FOR 2024
TORONTO, Sept. 5, 2023 /CNW/ - Normandin Beaudry, a leader in actuarial and total rewards consulting services, just unveiled the results of its 13th annual Salary Increase Survey. Close to 700 organizations took part in this 2024 edition of the survey conducted by Normandin Beaudry's experts. The results suggest that Canadian organizations are planning fairly substantial salary increases—albeit slightly lower than those of the last two years—with an average increase of 3.6% in 2024, excluding salary freezes.
"While a recession remains a possibility in the coming months, organizations are planning on granting increases in excess of 3% for a third year in a row," said Darcy Clark, Senior Principal, Compensation at Normandin Beaudry.
HIGHLIGHTS
Additional increases are needed to stand out
In 2023, nearly half of organizations allocated an average additional budget of 1.3% on top of their usual salary increase budget. Normandin Beaudry's survey shows that 43% of Canadian organizations plan to grant an average additional budget of 1.0% for the coming year. Securing supplementary budgets has been a trend among organizations in recent years, driven by the uncertain economic landscape and competitive job market. With these additional funds, organizations have more leeway to address the pressure brought on by labour shortage by making strategic adjustments throughout the year to retain employees in critical roles, differentiate the compensation of top performers, or accelerate the salary progression of certain employees.
Salary freezes remain low
Only 1% of organizations froze wages in 2023, however double that number intend to do so in 2024. These particularly low numbers are most likely due to the ongoing labour shortage and high inflation, as salary freezes usually range from 3% to 5%.
Sectors setting the pace
In Canada, organizations in the professional, scientific and technical services sector reported the highest actual salary increase budget of 4.8% for 2023, compared with an initial forecast of 4.2%.
For 2024, the following sectors are setting the pace with higher-than-average salary budget increases:
Professional, scientific and technical services: 3.9%
Real estate, rental and leasing: 3.9%
High technology: 3.9%
Pharmaceutical and biotechnology: 3.8%
Durable goods manufacturing: 3.8%
Accommodation and food services: 3.7%
The current economic landscape and difficult job market conditions (low unemployment rate, labour shortage and possible recession) continue to put pressure on organizations. However, it should be noted that increases granted in 2023 are slightly lower than the initial forecasts, a sign that organizations are being cautious. This was not the case in recent years, as increases granted were higher to those forecasted. Despite forecasts for higher increases once again this year, companies would be wise to exercise caution, as salary increases represent a permanent increase in fixed operating costs.
Monetary and non-monetary components: A winning combination
Normandin Beaudry's experts believe that striking the right balance of monetary and non-monetary components as part of their total rewards offering is what can help organizations stand out from the competition in more creative manner.
The interactive tool, with details by province, industry sector, type of organization and company size, amongst other data, is available here.
About Normandin Beaudry
Founded in 1992, Normandin Beaudry is a leader in actuarial and total rewards consulting services. From its offices in Montreal, Toronto and Quebec City, nearly 350 employees serve clients across Canada in eight areas of expertise: Pension and Savings, Pension Plan Administration, Investment Consulting, Group Benefits, Compensation, Health, Performance, and Communication.
About our Compensation Expertise
Normandin Beaudry's team of close to 40 compensation consultants is the largest in Canada. Through the sound and innovative use of data and technology, our versatile and creative experts provide their clients with unique and simple solutions that address their strategic and operational needs. For more details, visit https://www.normandin-beaudry.ca/en/areas-of-expertise/compensation/
SOURCE Normandin Beaudry
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