Quebec employers are planning salary increases of around 3.7% on average in 2024, according to a survey on salary projections carried out by the firm Normandin Beaudry.
Employers find themselves in a “funny context” as they have to juggle inflation, labor scarcity, but also an economic slowdown, notes Anna Potvin, partner and head of the compensation practice at Normandin Beaudry. “I would say that organizations have an approach of cautious optimism,” she describes in an interview.
The scarcity of labor is a little less of a concern for employers, while workforce reductions have taken place in certain industries, such as video games, technologies or financial services. However, the issue has not disappeared from the radar screen of organizations.
“Finding talent is perhaps a little easier than last year,” she replies. We hear that it’s easier to recruit, that there are a little more opportunities to seek out talent.
“On the other hand, let’s say we have maternity leave to replace, I hear that it’s still very difficult to find someone for a temporary period because we are still in a situation of full employment, for ‘instant,’ adds the partner.
In Quebec, employers’ budgets are counting on increases of 3.7% in 2024, according to the survey carried out among 296 organizations in the province.
Budget forecasts are therefore slightly higher in Quebec than in the rest of the country. In Canada, the budget for projected salary increases is 3.6%, according to the survey of 430 organizations across the country.
Even if inflation is moderating, the pace of salary increases remains higher than before the return of inflation. “We were generally below 3%, then it was between 2.4% and 2.7%. At 2.8%, it was a big year. There is still a significant gap compared to what we could see before 2021.”
Quebec employers are also planning an additional budget of 1.1%. This envelope could be used to make one-off adjustments, increase the compensation of top performers or retain employees playing a strategic role.
It is in Quebec that the additional budget of employers is the highest. In comparison, this figure is 0.9% in Canada and 0.8% in Ontario.
Mme Potvin believes that this situation cannot be explained by a single factor. However, she emphasizes that the unemployment rate is lower in Quebec than in the rest of the country. “That might be one of the reasons, probably not the only one. »
In December, the unemployment rate was 4.7% in Quebec, compared to 5.8% for the country as a whole, according to Statistics Canada data.
In his practice, Mme Potvin has seen many organizations launch offensives to attract employees. “For two years, with the clients we have been supporting, there are many who offer different elements to attract employees, such as engagement bonuses, for example. »