TIPS FOR EMPLOYERS: APPROACHING SALARY INCREASES IN 2023
THE INFLATION SALARY INCREASE
The job market has shifted dramatically in recent years. The Great Resignation hasn’t impacted Canada to the same degree as the US, but we’ve still seen hundreds of thousands more job vacancies compared to pre-pandemic levels.
The tight labour market and employees’ newfound willingness to swap jobs (as many as 50% of Canadian workers are considering switching jobs by some estimates) or quit outright has forced businesses to compete harder for top talent. Combine this with inflationary pressures on workers, and businesses need to be more creative if they want to keep their current staff or attract new talent within a highly competitive market.
But the good news is that employers do have a variety of options and ways to respond to these realities.
Prospective workers are primarily seeking three things:
1. Better pay
An Ipsos poll found that a third of workers would seek out new employment opportunities if they had to work full-time from the office. That number jumped to 42% of all younger (18-34 years of age) respondents. Flexibility is critically important to these workers; 36% of respondents, they would forgo salary to gain higher flexibility.
Yes, the salary raise percentage is high, but consider that it generally costs you 30-50% of a junior-level employee’s salary and 150% of a mid-level employee’s salary to replace them should they decide to leave.
In other words, a moderate wage increase in 2023 to keep top talent may be the more cost-effective choice, but if your business can implement more flexible work options, that can also help retain top-tier talent and attract new hires.
It doesn’t have to be fully remote, mind you – there are a number of ways that an employer can provide flexibility to its workers. From one remote day per week, or one remote week per month, or even one remote month per year, businesses are continuing to develop novel ways to address their employees’ concerns and needs.
3. Competitive benefits
Improving benefits packages can also be a great way to connect your business to your employees,helping to dissuade them from jumping ship. This is especially important as connectedness to employers has dropped for many employees following the pandemic and our periods of isolation. Working to rekindle that relationship can do wonders for employee retention.
Depending on the industry, turnover rate is anywhere from three to 22%! Considering how much it costs a business to lose an employee, cost-effective preventions of employee attrition like those mentioned above are critical.
A TORONTO STAFFING AGENCY THAT HELPS YOU LAND THAT DREAM CANDIDATE
TDS Personnel is a premier Toronto recruitment agency. Since 1975, TDS has been partnering with businesses operating in a variety of industries within the GTA. Our team has a proven track record of helping candidates advance their careers and placing top talent with some of the best organizations in Toronto. Get in touch to see how TDS Personnel can help you with your staffing needs.
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