LifeWorks Wellness Solutions survey finds Canadian organizations are feeling the effects of inflation and labor shortages during a time of global uncertainty
TORONTO, September 23, 2022–(BUSINESSWIRE)–LifeWorks, a leading provider of global wellness digital and in-person solutions, today released the results of its 40e Annual salary forecast survey, revealing that base salaries for Canadians will be much higher than originally expected. They rose 4.01 percent in 2022 and are expected to climb 3.93 percent in 2023.
Some important findings on wage increases:
In 2022, the average real increase in base salary was 4.01 percent excluding salary freezes and 3.77 percent including salary freezes. In 2022, 5.7 percent of organizations have frozen base salaries.
In 2023, employers expect annual base salaries to increase by an average of 3.93 per cent, excluding salary freezes, and 3.86 per cent including salary freezes. This means that very few organizations (1.52 percent) plan to freeze their base salaries.
Comments from Al Kiel, Senior Partner, Retirement and Financial Solutions:
“Last year, we projected base salary increases of 2.67 percent. Actual increases actually reached 4.01 percent, demonstrating that Canadian organizations have adapted to several challenges, such as market pressures, inflation and labor shortages. Looking ahead to 2023, we expect a continued increase in average base salary so employers can attract and retain talented employees and enable them to improve business results. »
Organizations suffer many impacts due to inflation and labor shortages
65 percent of organizations report increased compensation costs as a result of external market pressure due to inflation and labor shortages.
58 percent of organizations cite the need to adjust the salaries of current employees to be fair with those of new employees.
44 percent of organizations say they have more difficulty controlling their salary budget.
28 percent of organizations report that additional challenges prevent them from meeting their financial goals.
Comments from Guylaine Béliveau, Associate Partner, Compensation Advisory Services:
“Our data clearly highlights labor shortages as one of the main factors contributing to salary increases, just as Canadian employees are experiencing increased financial hardship, particularly due to the rise of the inflation and interest rates. Our most recent Financial Wellness Index report found that more than a quarter of Canadians worry about their ability to afford basic living expenses. For organizations to combat this phenomenon, they must not only focus on salaries and incentives, but also offer flexible work arrangements, resources for financial and mental well-being, as well as opportunities for growth. . »
To read the summary report, which highlights industry and regional differences in Canada, and to learn more about LifeWorks’ Compensation Consulting group, visit section on our site.
LifeWorks is a wholly owned subsidiary of TELUS which now operates within TELUS Health following its recent acquisition.
About the Salary Forecast Survey
The 40e LifeWorks Annual Salary Forecast Survey presents the results of an analysis of responses received in July and August 2022. The data comes from a wide range of industries, representing 548 organizations in Canada, and provides insight into the percentages of actual increases in salary budgets for the past five years, as well as projected increases for the coming year, and other data.
About TELUS Health
TELUS Health is a global company providing clinical services and digital solutions in more than 160 countries. Through a full range of primary and preventive care, it contributes to people’s physical, mental and financial health as well as their well-being. By leveraging technology to deliver connected in-person and virtual solutions and services, TELUS Health is facilitating access to care and revolutionizing the flow of information in the healthcare industry. In doing so, it improves collaboration, efficiency and productivity for the benefit of physicians, pharmacists, health authorities, allied health care providers, insurers, employers and people everywhere. She is thus progressing towards her goal of transforming health care and empowering people to take charge of their health.
Comprised of respected and passionate healthcare professionals, our clinical team provides world-class, person-centred care to hundreds of thousands of employers, professionals and their family members.
To find out more, see www.telushealth.com.
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Wages for Canadians beat 2022 projections and are expected to rise 3.93 per cent in 2023, marking a second year of significant increases