New salary increases are expected this year. The updated 2023 Salary Forecasts survey published by the Ordre des conseillers en ressources humaines agréés on February 23 informs us that Quebec employers have planned average salary increases of 4.4% for 2023. This is higher than what employers had indicated 6 months earlier (4.1%). This increase is higher than that identified for Canada as a whole (4.1%), and is also higher than the average increases deployed in 2022 in Quebec companies (4%).
This latest wage increase comes against a backdrop of persistent inflation and an intensifying labour shortage, with the third quarter of 2022 seeing the number of job vacancies in Quebec fall once again (-6.7% to 232,400). The province of Quebec thus remains the one with the lowest “job seekers – vacancies” ratio in Canada.
New minimum wage
What’s more, these wage increases will also be impacted by the latest announcement from the Ministry of Labour to raise the minimum wage by $1.00 an hour to $15.25, effective May 1, 2023.
From May1:
- the general minimum wage rate rises to $15.25 per hour (+$1.00);
- the minimum wage payable to tipped employees will be $12.20 per hour (+$0.80);
- the minimum wage payable to an employee assigned exclusively, during a pay period, to picking raspberries or strawberries will be $4.53 (+$0.30) and $1.21 (+$0.08) per kilogram respectively.
This minimum wage increase will have a direct impact on the hourly wages of many jobs, in order to remain competitive and attractive as an employer, bringing additional pressure on labor costs and wages.
Total rewards: a tool for building loyalty and attracting employees
In a context where salaries seem to be soaring ever higher, it’s more important than ever to consider the full range of benefits offered to candidates and employees in your staffing, while displaying a strong employer brand.
As a reminder, total compensation is usually broken down into three components:
- direct remuneration, which includes salary, tips, commissions and bonuses;
- indirect compensation, which includes benefits (group insurance in particular) and a pension plan (retirement fund, RRSP, DPSP);
- non-monetary compensation, usually specific to your employer brand (paid training or activity days, ergonomic workspace with sit-stand desk, barista at work, parking, access to a gym, etc.).
As you can imagine, 2023 promises to be another challenging year in terms of human resources. At Amyot Gélinas, we have a team that can help you implement attractive strategies or support you in your staffing. Don’t hesitate to contact the members of our Human Capital team today.
