Higher wages are anticipated in 2022.


Higher wages are anticipated in 2022.

Darcy Clark with solutions firm Normandin Beaudry says some companies are finding a standard salary increase won’t be enough to retain employees.

"Clients were wondering what they are going to do. At 2.8 per cent, it's not going to solve the problem. So, we ran a special poll survey on the topic and we're looking at a new revised increase of 3.3 per cent. Its a half percent increase of payroll more than we expected even four or five months ago. So, companies are really investing in their people because it's cheaper and easier to retain the employees you have rather than go buy talent in the market"

Clark attributes the necessary increase to labour shortages, inflation and The ‘Great’ Resignation.

"Certainly the labour market is even tighter for hourly roles because on-site roles are harder to attract people to right now but it is intended for everyone; and how companies will allocate those increase depends on individual employees, where you are in the market, relative to market where you are in your salary range and you'd think through internal equity on compensation as well within an organization. So, it's not to say everyone will get a 3.3 per cent increase. Some might get more, some might get less,” says Clark.

About 40 per cent of surveyed organizations are also planning an additional one-time budget increase of 1.2 per cent to address inequities and special circumstances.

“Money can fix any kind of retention problems for three to six months and then you kind of think about what's the broader employee value proposition of where I work. Who do I work for? What's their mission, their values? Does it align with me? All the non-monetary elements of why we work where we do are equally as important as the money but it's going to take a combination and a lot of tools from the tool kit to keep people.”

The increase could hit anyone in a tight labour market like high tech and goods manufacturing.

MacDonald’s already offering $17.50 an hour, up $2.30 from minimum wage.