More than 9 in 10 professionals in Canada are “concerned about inflation outpacing salary growth,” according to a new report from human resources consulting firm Robert Half.
In addition, one in three professionals said they’ll look for other opportunities if they don’t get a raise, while 51 per cent reported feeling underpaid in their current positions.
Still, general confidence among Canadian workers is on the rise, which can be attributed to Canada’s macroeconomic climate and willingness among companies to hire amid a normalizing market, said Robert Half’s senior regional director Mike Shekhtman.
“Companies are still looking for people and talented individuals know that they’re going to have opportunities,” Shekhtman said. “If anything, we’ve seen this market become a little bit more normalized in nature because we came from such an overheated market in 2022.”
Workers are also looking for flexibility of work, the report noted, with 44 per cent of Canadian professionals preferring to work two or three days a week at the office. Employers, by contrast, “would prefer their teams in office four days per week.”
On the other side of the equation, more than 30 per cent of hiring managers indicated that they’re bumping up new-hire salaries in order to entice new workers, though employers more frequently employ hybrid work environments and flexible schedules to recruit employees, the report noted.
Regardless, workers are apt to move on if their salary expectations aren’t being met, Shekhtman said.
“People will make a move if they’re not feeling like they are making in line with what their role expects and that’s going to be a continued trend,” Shekhtman said.
Robert Half’s findings are based on survey responses from more than 1,750 workers and 1,800 managers with hiring responsibilities, according to a news release published alongside the report.
Overall, cash is king for workers seeking employment, and there’s no indication that will change anytime soon. But the concept of a salary can look different depending on if companies get creative with their compensation packages, Shekhtman advised.
Companies are increasingly offering more holistic compensation packages that include signing or retention bonuses, subsidized transit and parking, or even subsidized child care, the latter of which became more popular as an offering at the tail end of the pandemic.
“No matter what cycle we’re in, money continues to be the number one motivator, whether it’s from a retention strategy or attracting new talent,” Shekhtman said. “No matter where inflation lands — and of course, they’re shooting for that 2 per cent — the reality is individuals and families will continue to have the challenges in terms of paying for cost of living, and I think that’s going to continue to be the case.”
Salaries for non-unionized workers are expected to rise by 3.45 per cent in 2025, according to a salary projection survey conducted by TELUS Health this summer, with few organizations intending to freeze wages. In 2024, those same salaries rose 3.67 per cent, according to the TELUS survey.
