Wages Rise Significantly in Past Two Years; Benefit Offerings Lag Behind
London, Ontario - September 28, 2022
Two-thirds of Canadian companies (66%) say they are increasing wages this year, up significantly from 51% in 2021 and 44% in 2020, according to a survey from The Harris Poll commissioned by Express Employment Professionals.
While most companies are increasing wages this year, only 28% are increasing benefits, with the most common being increased sick leave (17%), additional health care incentives-like gym memberships or mental health resources (17%), increased paid time off (16%), more parental leave time (13%) and improved retirement plans (12%).
Despite increasing wages and some improvement to benefits, Canadian companies say employee turnover remains high, with 35% of companies reporting that turnover has increased this year compared to last. In addition, 40% of companies say they have open positions they cannot fill.
More than 1 in 3 companies (36%) say employee turnover has increased because of better pay and/or benefits offered elsewhere, while slightly over 1 in 4 companies (28%) say it is due to better perks (e.g., more vacation days, remote or hybrid work).
Additionally, a majority of companies (65%) say it is impossible to offer all the benefits that employees want now. Indeed, more than 1 in 5 companies (21%) say their biggest hiring challenge this year is that their pay is not competitive enough to attract employees, with uncompetitive benefit offerings identified as the second biggest challenge at 16%.
"Companies that have raised their pay rates significantly over the past year are gaining an upper hand when it comes to hiring," said James Norris, franchise owner of the London Express franchise office. "Increase in wages alone won't solve companies' recruiting and retention problems. A workplace that offers training and development, advancement opportunities, and has strong leadership are all needed to be successful in this extremely competitive environment for top talent."
Finding the right balance between wage offerings and spending limitations is one of the biggest challenges employers are facing right now, according to Express Employment International CEO Bill Stoller.
"So many businesses are stretched thin between this, inflation and supply chain blockades," he added. "The next several months will be pivotal to companies to see if they can survive the high cost of success."
Survey Methodology
The survey was conducted online within Canada by The Harris Poll on behalf of Express Employment Professionals between May 3-23, 2022, among 504 Canadian hiring decision-makers (defined as adults ages 18+ in Canada who are employed full-time or self-employed, work at companies with more than one employee and have full/significant involvement in hiring decisions at their company). Data were weighted where necessary by company size to bring them into line with their actual proportions in the population.
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About Express Employment Professionals
At Express Employment Professionals, we're in the business of people. From job seekers to client companies, Express helps people thrive and businesses grow. Our international network of franchises offers localized staffing solutions to the communities they serve across the U.S., Canada, South Africa, Australia and New Zealand, employing 586,000 people globally in 2021 and 10 million since its inception. For more information, visit ExpressPros.com/CA.
The London Express office is located at 300 Dundas Street, Suite 200, and serves the London, Middlesex, St. Thomas, Strathroy, Stratford, Woodstock, Ingersoll, Tillsonburg, and Southwestern Ontario. Local businesses and applicants are encouraged to visit https://expresspros.com/london/ or call (519)672-7620.
About Bill Stoller
William H. "Bill" Stoller is chairman and chief executive officer of Express Employment
International. Founded in Oklahoma City, Oklahoma, the international staffing franchisor
supports the Express Employment Professionals franchise and related brands. The Express franchise brand is an industry-leading, international staffing company with franchise locations in the U.S., Canada, South Africa, Australia and New Zealand.