In response to robust demand for workers, employers across Canada are looking to bump up salaries as a part of their 2022 workforce plan. Many employers are losing business and productivity due to labor shortage. To attract talent and to address labor constraints, employers are incentivizing local population and raising salaries of existing workforce.
LifeWorks survey report revealed that average salary in Canada would climb 2.7 percent in 2022, excluding firms that plan to freeze wages.
Base salaries are anticipated to rise in 2022, with an average yearly pay increase of 2.5 percent. Due to the tight labor market, employers are being compelled to make the most significant compensation adjustments in the last five years.
Employers preparing to scale up wages to attract and retain workers
In this competitive labor market, Canadian firms are using bonuses to attract and retain workers. As per the survey carried out by Mercer Talent, about 50% of respondents are ready to pay higher salaries than market rates. In response to the challenges in attracting and/or retaining talent, 41.67% of companies are revisiting their strategic workforce planning while 50.93% are reevaluating compensation and benefits offerings.
The Canadian economy is slowly recovering, and companies are being compelled to loosen their purse strings because of labor shortage. Employees are seeking both more income and persuasive jobs because of the flourishing labour market and rising inflation.
Increase in salary based on specific sectors
According to the LifeWorks survey report, the highest projected average salary increase for 2022 will be on wholesale trade with a planned hike of 3.1 per cent followed by construction (2.9 per cent) and professional, scientific and technical services (2.9 per cent). The lowest salary increase is projected in healthcare and social assistance (1.8 per cent) and information and cultural industries (1.5 per cent).
Salaries are expected to increase while wage freezes decline, which is good news for most Canadian workers, even though they must keep in mind the looming inflation rate.
Opportunities for immigration as a measure to resolve labor shortage
There are immense opportunities for skilled workers in Canada, due to labor shortage in various industries. Atlantic Immigration Pilot, Canadian Experience Class, Caregiver Pilot and Federal Skilled Trade Class are just a handful of skilled worker immigration program for skilled and talented workers willing to immigrate to Canada.
In addition, workers interested in immigrating to Canada can opt the Global Talent Stream pathway of the Temporary Foreign Worker Program (TFWP), which expedites the processing of Canadian work permits and visa applications in order to meet or resolve labor shortages.
Organizations and business leaders across Canada are hopeful that immigration will resolve the prevalent labor crunch and enable businesses to access talent they need to recover and grow.
Canadian business leaders want government to speed up the overall process of immigration with an emphasis on streamlining and accelerating pathways for temporary foreign workers.
We at Can X offer the following solutions to address labor constraints in Canadian business:
- Hiring workers under Seasonal Agricultural Worker Program (SAWP)
- Hiring workers under Labor Market Impact Assessment (LMIA)
Give us an opportunity to discuss your requirements and let our experts find a solution tailored to your needs.