TORONTO--(BUSINESS WIRE)--LifeWorks, a leading provider of digital and in-person total wellbeing solutions, today released its 40th annual Salary Projection Survey. The findings revealed much higher Canadian base salaries than initially projected, increasing 4.01 per cent in 2022 and set to increase 3.93 per cent in 2023.
Key salary increase findings include:
- In 2022, the average actual increase to the base salary was 4.01 per cent excluding freezes and 3.77 per cent including freezes. In 2022, 5.7 per cent of organizations froze their base salaries.
- In 2023, employers are projecting an average annual base salary increase of 3.93 per cent excluding freezes and 3.86 per cent including freezes. This indicates very few organizations (1.52 per cent) plan to freeze their base salaries.
Comments from senior partner, retirement and financial solutions, Al Kiel:
“Last year, we projected base salary increases of 2.67 per cent. In fact, the actual base salary increases were 4.01 per cent. This demonstrates that Canadian organizations adapted to many challenges such as market pressure, inflation and labour shortages. As we look toward 2023, we anticipate a continued rise in the average base salary in an effort for employers to attract, retain and empower talent to drive business results.”
Organizations are experiencing a range of impacts of inflation and labour shortages
- 65 per cent of organizations cite a rise in compensation costs caused by external market pressure as an impact of inflation and labour shortages.
- 58 per cent of organizations cite the need to adjust the salaries of current employees to be equitable with new hires.
- 44 per cent of organizations indicate increased challenges in controlling salary budget.
- 28 per cent of organizations report additional challenges in achieving financial objectives.
Comments from associate partner, compensation consulting practice, Guylaine Béliveau:
“Our data clearly underscores the worker shortage as one of the leading contributing factors driving wage increases. This comes as Canadian employees are experiencing heightened financial concerns including rising inflation and interest rates. Our latest Financial Wellbeing Index indicated more than one quarter of Canadians are concerned about their ability to cover basic living expenses. For organizations to combat this, focus needs to not only be placed on salaries and incentives, but also on flexible working conditions, financial and mental wellbeing resources and growth opportunities.”
To read the summary report, which includes industry differences and regional differences across Canada and to learn more about LifeWorks compensation consulting practice, visit our website page.
LifeWorks is a wholly owned subsidiary of TELUS now operating as part of TELUS Health as a result of its recent acquisition.
About the Salary Projection Survey
The 40th annual Salary Projection Survey from LifeWorks presents results that are an analysis of responses collected in July and August 2022. The data represents a broad cross-section of industries representing 548 organizations across Canada and provides data on actual salary budget increase percentages for the past five years, projected increases for next year, and more.
About TELUS Health
TELUS Health is a global healthcare company serving people in more than 160 countries delivering both digital innovation and clinical services to improve total physical, mental and financial health and wellness across the full spectrum of primary and preventative care. By leveraging the power of technology to deliver connected solutions and services, both in-person and virtually, TELUS Health is improving access to care and revolutionizing the flow of information while facilitating collaboration, efficiency, and productivity for physicians, pharmacists, health authorities, allied healthcare professionals, insurers, employers and people globally, progressing its vision of transforming healthcare and empowering people to live healthier lives.
Our clinical team is composed of renowned and passionate health professionals around the world delivering best-in-class people-centric care to hundreds of thousands of employers, professionals and their families.
For more information, please visit: www.telushealth.com.
ID-CAD, ID-CORP, ID-MH