Inflation and labour shortages are a surefire recipe for increased wage pressure – a trend confirmed by an annual Telus Health survey, which finds base salaries are growing faster than expected.
The annual survey is based on data from more than 500 Canadian organizations in various sectors. It predicts average base salaries will increase by 3.64 per cent (excluding salary freezes) across Canada for 2024.
This year’s actual average increase of 4.22 per cent (excluding salary freezes) was higher than projected.
"This marks the third consecutive year of significant increases," Telus Health says in a news release.
Sixty-five per cent of those surveyed said the rise in compensation costs was a result of inflation and labour challenges that are making recruitment and retention ever more challenging. The survey found only 1.6 per cent of organizations surveyed plan to freeze wages in 2024.
“In 2024, salary increases are slated to exceed the average for the past 20 years due to external market pressures, including increased competition for skilled talent across the country,” Guylaine Béliveau, national practice leader for Telus Health compensation consulting practice, said in a press release.
“That competitive environment has added significant challenges when recruiting new employees and retaining top performers. As salaries rise, total rewards programs have gained prominence, with 33 per cent of companies enhancing benefits to help fight against inflation.”
The provinces with the highest expected increases to base salaries in 2024 are B.C. (3.91 per cent), Manitoba (3.77 per cent) and Nova Scotia (3.69 per cent).
