As we reported in our March 2023 article ” New wage increases in sight “, Quebec employers are planning to grant average wage increases of almost 4.4% this year.
At the same time, the province’s economic outlook points to a certain slowdown in growth, which could restrict business budgets.
Although inflation is expected to return to “normal” in 2024, employees are still expecting salary increases to match the galloping inflation of recent months. What’s more, the country’s unemployment rate remains historically low, which continues to play into the hands of talent when it comes to salary expectations.
Is it possible for employers to strike a satisfactory balance between sound salary management and remaining competitive in a booming job market?
Here are a few possible solutions to explore:
1- Enhance your total compensation package.
Salary increases can represent a significant budget, but salary isn’t everything! Talent today expects benefits, flexibility and extra time off to help balance work and family. But don’t be fooled by the fact that total compensation isn’t defined at random. To take full advantage of attraction and retention benefits, the offer must meet your employees’ expectations.
2- Compare your salary structure to the market.
Is it still competitive? Benchmarking allows you to ensure the external fairness of your salaries and your positioning strategy in relation to competing employers.
3- Make sure you respect your internal and individual equity.
While internal equity is achieved by evaluating positions against each other to define salary grades, individual equity allows the contribution of talent to be recognized. In a fast-changing market, don’t make the mistake of neglecting it and losing disappointed employees.
4- Embrace salary transparency.
While this trend is becoming increasingly popular, it also saves a lot of time wasted on recruitment. Posting a salary range for an offered position allows candidates to decide from the outset whether or not to apply for an opportunity… thus avoiding a $20,000 gap in expectations after 2 interviews. Internally, a clear policy enables employees to understand the fundamentals of the compensation system, the mechanisms of the salary structure and progression.
To conclude
While labor scarcity and inflationary pressures present their own challenges for employers, it is possible to make the most of the situation with compensation management strategies that promote attraction and retention.
An article from our Human Capital team.
For further reading : Salary forecasts for 2023: upward revision (ordrecrha.org)
