69 Per Cent of Canadian Companies Have Experienced Pay Compression in the Last 12 Months, Robert Half Research Finds

TORONTO, April 8, 2022

"In today's tight labour market, employers need to recognize and resolve any pay discrepancies that may exist among employees in order to retain talent and remain competitive as an organization," said David King, Canadian senior managing director of Robert Half. "Companies should take deliberate steps to improve their compensation strategy, including benchmarking salaries, conducting pay equity reviews and making adjustments as needed to ensure all employees are paid fairly for their work."

Workers Expect a Raise

There are several factors at play when it comes to wage growth, and employees' expectations are among them. In a separate survey of more than 500 Canadian workers, 41 per cent of respondents said they have not had a raise in 12 months. In addition, half (50 per cent) plan to ask for a raise this year, with the top reasons being:

• To adjust for the higher cost of living (31 per cent)
• To account for additional job responsibilities (18 per cent)
• To reflect current market rates (16 per cent)

If workers don't get a raise:

• 36 per cent will look for a new job with higher pay
• 25 per cent will ask to revisit the salary conversation in a few months
• 17 per cent will ask for more perks

View an infographic of the research highlights.

"Along with addressing salary gaps, companies need to provide a fulsome compensation and benefits package that promotes a positive employee experience overall," added King. "That includes offering opportunities for career development and advancement, additional paid time off, flexible schedules, and remote or hybrid work options."