Many Canadian companies are taking measures to increase pay equity among employees, with 69 per cent saying they’ve observed salary discrepancies between new hires and more tenured staff in the past year, according to a new survey by Robert Half Canada Inc.
The survey, which polled more than 200 C-suite executive across a wide range of industries, found that, among the companies taking these measures, 57 per cent said they’re increasing salaries for current staff to help close wage gaps.
“In today’s tight labour market, employers need to recognize and resolve any pay discrepancies that may exist among employees in order to retain talent and remain competitive as an organization,” said David King, Canadian senior managing director of Robert Half, in a press release. “Companies should take deliberate steps to improve their compensation strategy, including benchmarking salaries, conducting pay equity reviews and making adjustments as needed to ensure all employees are paid fairly for their work.”
Read: Average salary increase rose to 2.8% in 2021: survey
In a separate survey, which polled more than 500 Canadian employees, 41 per cent of respondents said they haven’t had a raise in 12 months. In addition, half of respondents said they plan to ask for a raise this year.
The top reasons cited for asking for a raise were to adjust for the higher cost of living (31 per cent), to account for additional job responsibilities (18 per cent) and to reflect current market rates (16 per cent).
If workers don’t get a raise, 36 per cent said they’ll look for a new job with higher pay, while 25 per cent will ask to revisit the salary conversation in a few months and 17 per cent will ask for more perks.
“Along with addressing salary gaps, companies need to provide a fulsome compensation and benefits package that promotes a positive employee experience overall,” said King. “That includes offering opportunities for career development and advancement, additional paid time off, flexible schedules and remote or hybrid work options.”
Read: 43% of Canadian workers considering looking for a new job in 2022: survey