LifeWorks Wellness Solutions survey reveals Canadian organizations are feeling the effects of inflation and labor shortages in a time of global uncertainty
TORONTO, September 23, 2022–(BUSINESSWIRE)–LifeWorks, a leading provider of digital and in-person global wellness solutions, today released the results of its 40me Annual salary forecast survey, revealing that Canadians’ base salaries will be much higher than originally expected. They are up 4.01 percent in 2022 and are expected to be up 3.93 percent in 2023.
Some important takeaways about salary increases:
In 2022, the average real base salary increase was 4.01 percent not including pay freezes and 3.77 percent including pay freezes. In 2022, 5.7 percent of organizations have frozen base salaries.
In 2023, employers expect annual base salaries to increase by an average of 3.93 percent, excluding pay freezes, and 3.86 percent, including pay freezes. This means that very few organizations (1.52 percent) plan to freeze their base salaries.
Comments from Al Kiel, Senior Partner, Retirement and Financial Solutions:
“Last year, we projected base salary increases of 2.67 percent. Actual increases actually reached 4.01 per cent, showing that Canadian organizations have adapted to various challenges, including market pressures, inflation and labor shortages. Looking ahead to 2023, we expect a continued increase in average base salary so employers can attract and retain talented employees and enable them to improve business results. »
Organizations are heavily impacted by inflation and labor shortages
65 percent of organizations report higher compensation costs as a result of external market pressure due to inflation and labor shortages.
58 percent of organizations cite the need to adjust current employee salaries to be fair to new hires.
44 percent of organizations say they have a harder time controlling their salary budget.
28 percent of organizations report that additional challenges prevent them from achieving their financial goals.
Comments from Guylaine Béliveau, Associate Partner, Compensation Advisory Services:
“Our data clearly highlights labor shortages as one of the main factors contributing to wage increases, just as Canadian employees experience greater financial hardship, particularly due to rising inflation and interest rates. Our The most recent Financial Well-Being Index report found that more than a quarter of Canadians are concerned about their ability to pay for basic living expenses.For organizations to combat this phenomenon, they must not only focus on pay and incentives, but also offer flexible work arrangements, resources for financial and mental well-being, as well as opportunities for growth. »
To read the summary report, which highlights industry and regional differences in Canada, and to learn more about the LifeWorks compensation consulting group, visit section on our site
LifeWorks is a wholly owned subsidiary of TELUS that now operates within TELUS Health following its recent acquisition.
About the Salary Forecast Survey
the 40me The LifeWorks Annual Salary Forecast Survey presents the results of an analysis of responses received in July and August 2022. The data comes from a wide range of industries, representing 548 organizations in Canada, and provides information on the percentages of actual increases in salary budgets for the last five years, as well as projected increases for the next year and other data.
About TELUS Health
TELUS Health is a global company providing clinical services and digital solutions in more than 160 countries. Through a full range of primary and preventive care, it contributes to people’s physical, mental and financial health and well-being. By leveraging technology to deliver connected in-person and virtual solutions and services, TELUS Health is facilitating access to care and revolutionizing the flow of information in the healthcare industry. In doing so, it improves collaboration, efficiency, and productivity for the benefit of physicians, pharmacists, health authorities, allied health care providers, insurers, employers, and individuals around the world. Thus, it is moving toward its goal of transforming healthcare and empowering people to take charge of their health.
Comprised of respected and passionate healthcare professionals, our clinical team provides world-class, person-centered care to hundreds of thousands of employers, professionals and their families.
For more information, see www.telushealth.com.
ID-CAD, ID-CORP, ID-MH
See the source version on businesswire.com: https://www.businesswire.com/news/home/20220923005103/en/
TELUS Public Relations