According to a report by consulting firm Eckler Ltd., the construction industry is expecting increases of 5.1 percent across all sectors. Canadian employers are anticipating the highest salary increase in two decades due to:
- Balancing inflationary pressures
- Surging interest rates
- Recession risks
- Tight labour market
Ontario Construction News reports that the survey showed the national average base salary increase for next year is projected at 4.2 per cent, excluding planned salary freezes, which parallels 2022 actual base salary increases. Projected salary increases for 2022 was lower than the actual figures.
Specific industries could see outsized wage hikes such as:
- Information technology (5.4 per cent)
- Professional associations (5.3 per cent)
- Construction (5.1 per cent)
- Media & Telecommunications (5.1 per cent)
British Columbia, Ontario and Quebec are projecting the highest average salary increases, with the Yukon, Nunavut and Prince Edward Island projecting the lowest.
The largest average salary increases are expected to be in the technology sector at 5.4 per cent. The smallest increases are expected in the education, health care, agriculture and hospitality sectors.
Yahoo! states the survey results also show that Canadian organizations are planning 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.
"While we have transitioned away from the conservatism we saw during the pandemic, as organizations look to offset red-hot inflation and a tight labour market, we were surprised to see that there are a fair number of organizations (44%) that remain undecided about salary budgets for 2023. Perhaps this 'wait and see' approach is another attempt to gain some certainty as they look to what their competitors are doing."
National Compensation Practice leader at Eckler | Anand Parsan
According to the survey results, human resource priorities for the next 12 months will be focused on broader initiatives. The top HR initiatives reported include:
- Diversity, equity and inclusion initiatives (32%)
- Compensation (31%)
- Talent retention (31%)
- Employee engagement (25%)
"We were not surprised to see that organizations are focused on initiatives like DEI, talent retention and engagement because many organizations are struggling with similar issues right now. What will set an organization apart is a comprehensive total rewards strategy that supports each of these objectives while also meeting the needs of a diverse workplace. If employees do not perceive that there is value in the rewards you are offering, you may be less likely to attract and keep the talent you need to achieve organizational objectives."
Head of Eckler's Pension & Benefits Consulting Firm | Chris Brisebois
Eckler's inaugural Compensation Planning Survey was conducted from July to August 2022 and collected responses from 269 Canadian organizations across diverse sectors and industries.
Eckler Ltd. was established in 1927 and is one of the longest established and most respected consulting and actuarial practices in Canada.