'Companies need to align their total compensation package with market trends and employee expectations'
Canadian employers might have to let more cash flow to keep their best talent onboard.
That’s because 50 per cent of employees think they are underpaid and 18 per cent would consider quitting their job if they don't get a raise by year's end, according to a report from Robert Half.
"Renewed business confidence is boosting hiring activity in professional industries across Canada, and the need for skilled workers is at an all-time high," says David King, Canadian senior district president of Robert Half. "Professionals are in the driver's seat when it comes to negotiating a raise or new role — and they are interested in more than just pay. Companies need to align their total compensation package with market trends and employee expectations."
Given the current climate, salary projections for 2022 are lower than expected, according to Normandin Beaudry. Increases are forecast at 2.8 per cent, excluding freezes, similar to the 2.7 per cent increase recorded in 2019.
Currently, 35 per cent of employers are offering signing bonuses to entice new hires, according to Robert Half. Also, more companies hiring remote workers are setting their pay by employer’s office location (60 per cent) than those depending on employee’s location (40 per cent).
There were 57,123 job ads offering a sign-on bonus in August in the U.S., marking a 454-per-cent increase from 2020, according to a separate report.
But it’s not all about money when recruiting talent, according to Robert Half’s report based on three surveys of: more than 500 workers from March 26 to April 15; 800 senior managers from June 4 to July 1, 2021; more than 500 workers from June 22 to 29, 2021.
When weighing job offers, candidates are seeking flexible work options (75 per cent) and remote work options (61 per cent). Some are also looking for employee discounts (40 per cent).
“While hiring is top of mind right now, keeping current employees motivated and engaged also needs to be an ongoing priority for organizations," says King. "This includes regularly benchmarking salaries and identifying factors that enhance job satisfaction, such as opportunities for advancement, flexible schedules, and programs that support employee well-being."
Amid “The Great Resignation,” workers are being more selective about what they want, says Melody Kasulis, senior creative project manager at Skynova, in an interview with Canadian HR Reporter.