TORONTO, Sept. 25,
2023 /CNW/ - Today, Mercer released the results of
its August 2023 Mercer QuickPulse™
Canada Compensation Planning Survey revealing that although cost of
living concerns remain top of mind for many Canadians, employers
are projecting a more modest annual increase for both merit and
total compensation budgets compared to 2023.
Canadian employers are projecting 3.3% for merit increases and
3.7% for total increase budgets in 2024 compared to 3.6% and 4.1%,
respectively for 2023, for non-unionized workers. Total increase
budgets include merit increases along with other base pay increases
such as promotional pay increases and cost of living adjustments.
Although Canada still has an
extremely tight labour market, indices show that the market is
stabilizing. As a result, the use of pay increases to respond to
labour market pressures has slowed down.
"In the face of economic uncertainty and reduced labour market
pressure, employer compensation budgets seem to be returning to
pre-pandemic levels," said Elizabeth
English, Principal in Mercer Canada's Career Products
business. "If Canada's labour
market continues to cool over the next few months, it could reduce
pressure on 2024 compensation budgets even further."
The survey also highlights how pay transparency is an emerging
priority for Canadian employers. British
Columbia is one of the first provinces to have passed pay
transparency legislation requiring employers to post salary ranges
on publicly advertised job postings. The legislation goes into
effect November 1, 2023.
The survey found that many Canadian employers overall are taking
a less proactive approach, with only 30% agreeing they should have
embedded transparency as part of their reward and talent
philosophies. What's more, 51% of employers have no plans to go
further with pay transparency than required by local law. However,
over the last year, the number of Canadian companies who report
that they share salary ranges in job postings has nearly doubled,
from 8% to 15%.
"Pay transparency legislation continues to push employers to
fast forward their policies," added English. "Proactive action will
not only help employers get ahead of future legislation, but pay
transparency promotes a culture of trust, increases employee
perceptions of fair play, is critical in attracting candidates, and
ultimately drives higher levels of commitment and engagement."
Mercer's Compensation Planning Survey includes data from more
than 500 organizations of varying sizes across 15 industries.
You can view more of the survey findings here.
To learn more about the survey results and gain insights
directly from Mercer's business leaders, register for Mercer's
signature event webinar: Reshaping the future: Total rewards on
fast forward.
About Mercer
Mercer believes in building brighter futures by redefining
the world of work, reshaping retirement and investment outcomes,
and unlocking real health and well-being. Mercer's approximately
25,000 employees are based in 43 countries and the firm operates in
130 countries. Mercer is a business of Marsh McLennan (NYSE: MMC), the world's leading
professional services firm in the areas of risk, strategy and
people, with more than 85,000 colleagues and annual revenue of over
$20 billion. Through its
market-leading businesses including Marsh, Guy Carpenter and Oliver Wyman, Marsh McLennan helps clients
navigate an increasingly dynamic and complex environment. For more
information, visit mercer.com. Follow Mercer on LinkedIn and
Twitter.
SOURCE Mercer