This Canada Day, we tip our toques to our neighbors to the north. For the uninitiated, July 1 commemorates the unification of Canada’s original three provinces (Nova Scotia, New Brunswick and the Canada province, which is now Ontario and Quebec) as one nation in 1867. It only seems fitting that we take this holiday to focus on data we’ve uncovered, pertaining to Canadian compensation best practices and Canadian salaries.
Canadian Employment Overview
2018 was a fairly good year for many Canadian businesses. Through much of 2018, Canada’s unemployment rate hovered near a 40-year low and job creation remained strong. Canada is experiencing a generally solid economy, and a population heading towards retirement. Thus, many employers will increase their hiring.
However, not all job sectors reflect this positive outlook. While certain sectors, including e-commerce, technology and healthcare, saw robust job growth, the oil and gas industry — concentrated in Alberta — continue to struggle.
Canadian Compensation Survey Insights
Most Canadian organizations plan to give increases in 2019 (87 percent). In fact, twenty-seven percent of Canadian organizations plan to continue the trend of a 2 to 2.49 percent average base pay increase. Just over half of Canadian organizations predict that their bonus or incentive budgets will not change in 2019 (53 percent).
Training and Employee Development
One of the most common reasons for attrition is a lack of professional advancement opportunities. Indeed, many workers today — especially younger ones — are hungry to grow and they expect their employers to provide them with constant learning and growth opportunities. In 2019, organizations across Canada see training and development as their biggest investment area within HR.
Building a Pay Brand
It’s becoming increasingly difficult to attract and keep the right people. Thus, it’s essential that your compensation philosophy, strategy and practices are in close alignment with your values as an organization. The best way to focus on cultivating a strong pay brand, and employer brand overall, is to genuinely focus on your employees as much as you focus on customers, profit and investors.
It helps to start by asking yourself some questions. If your organization values transparency, how do you breathe life into that value through your pay practices? Do you share pay ranges and market data with employees? Or, if you value innovation, how could you use your comp plan to incentivize employees to be more innovative?
Learn More About Canadian Compensation Best Practices
Want to see how organizations across Canada are handling compensation in 2019? Or how your total rewards mix compares to peers in your region? Learn more by downloading the Canadian Compensation Best Practices Report.