But 12-per-cent drop in number of companies planning to hire permanent staff
More than two-thirds (66 per cent) of Canada’s employers are set to exceed payroll budgets to attract new hires while more than one-third (34 per cent) plan to boost salaries for existing staff in 2020, according to Hays Canada.
Nationally, 44 per cent of employers plan to increase salaries by more than two per cent this year, found its survey of more than 3,000 employers and employees. One-third (32 per cent) were unsure and 25 per cent do not plan to offer salary increases of more than two per cent.
In analyzing salary trends over the previous five years, Hays found that raises of more than three per cent are on the rebound.
However, hiring activity is expected to slow — 40 per cent of companies say they will hire additional permanent staff over the next year, a 12 per cent year-over-year drop.
“It’s great to see companies tackling compensation issues but our data shows that workplace dissatisfaction is growing alongside employers’ plans to slow the pace of hiring in 2020,” says Rowan O’Grady, president of Hays Canada. “More pay is always a good thing but it won’t solve issues around staff morale or career development. Larger paycheques are typically eclipsed by heightened stress and staff burnout. Balancing pay with adequate staffing is a crucial consideration.”
Attraction, retention challenges
Almost two-thirds (62 per cent) of employers believe their industry will grow over the next year, but 79 per cent say they suffer from a skills shortage. Almost half of them (47 per cent) local competition for talent and compensation is among their biggest hiring obstacles.
This comes at a point when 58 per cent of employees expressed serious interest in leaving their current role citing factors including pay dissatisfaction, lack of career advancement and weak company culture, says Hays.