Salary increases for 2023: Organizations under high pressure
In September 2022, Normandin Beaudry published the results of its 2023 Salary Increase Survey. The results pointed to historically high salary increases for 2023, for an average of 3.8% in Canada, excluding freezes.
Forecasting 2023 salary increase budgets continues to evolve, as organizations try to adapt to unprecedented financial times and challenging job market conditions. In November 2022, Normandin Beaudry launched a pulse survey to confirm the 2023 forecasts. The survey is still under way. To receive detailed results in January, answer this brief questionnaire before December 21.
In just two weeks, more than 240 organizations provided updated forecasts. Preliminary results signal that 42% of respondents have revised their initial salary increase budgets upward for the coming year. Despite a looming potential for recession, average increase budgets (excluding freezes) in Canada are higher than initial forecasts, jumping from 3.8% before the summer to 4.2% this past fall.
Moreover, approximately 40% of Canadian respondents are setting aside an average additional budget of 1.2%, which will help these organizations set themselves apart amidst the ongoing labour shortage. More specifically, these additional funds will help organizations:
- Make market adjustments (76%)
- Retain strategic/critical roles (68%)
- Retain employees who might consider switching jobs (54%)