Photo Credit: PCI Compensation Consulting

2023 SALARY INCREASES - PCI's Salary Increase Survey Reveals a Record Increase of 4.2% on Average for Quebec Organizations


Friday, 16 September 2022 14:22.PM

- Labour scarcity, inflation and high turnover rates in several industries are among the key factors impacting salary budgets for the coming year. -

PCI Compensation Consulting, one of Canada's leading total compensation and governance consulting firms, has released the results of its 2023 salary increase survey. Survey reveals a record Increase of 4.2% on average for Quebec organizations.

This 9th edition, which was conducted with over 350 organizations from a wide range of industries, focused on assessing organizations' intentions not only in terms of their budgets for increasing salaries and increasing the salary structure of their employees, but also in terms of the various initiatives being considered or implemented to address workforce issues.

"Despite an uncertain economic environment, record high inflation has resulted in salary forecasts that are significantly higher for 2023 than they have been since we launched our salary increase survey 9 years ago," said Evelyne Gaudreau, Consultant and head of surveys at PCI Compensation Consulting. These new forecasts clearly reflect the harsh reality facing organizations: a competitive labour market, driven in part by an aging population, and inflationary pressures that are just beginning to subside."

PCI'S SALARY INCREASE SURVEY HIGHLIGHTS

PCI'S SALARY INCREASE SURVEY HIGHLIGHTS

• Salary Increase Budget
­• • The average projected budget for 2023 is between 3.2% and 4.5% depending on the sector - with Energy / Mining / Materials / Natural Resources being the most generous.
• • ­At 3.2%, the projected rate of wage increases in the Culture and Recreation / Accommodation and Food Services sector is somewhat surprising given the labor issues that particularly affect this industry.
• • ­The data collected for 2022 and 2023 shows that the larger the organization, the lower the rate of wage increase.
• Additional Budget for Salary Increases
­• • 53% of the organizations surveyed have an additional budget of 2.5% on average to recognize special cases (high-potential employees, employees in accelerated progression, employees in jobs with labour shortages, etc.), an actual budget in 2022 similar to the 2023 forecast, but higher than the trends observed in the recent years which was between 1.5% and 2%.
• Salary Structure
­• • In 2022, 7% of organizations in Quebec have frozen their salary structure, while only 2% plan to do so in 2023.
­• • Structure increase budgets are averaging 3.3%, a notable increase in comparison with the 2% trends we've seen in recent years.

In addition to the above data, PCI Compensation Consulting's survey reveals several interesting statistics regarding the presence of a formal compensation structure within organizations, recruitment tactics, the use of new technologies, as well as measures aiming to counter inflation.

PCI Compensation Consulting would like to thank all the organizations that participated in the 2023 edition of its Salary Increase Survey.

SOURCE: PCI Compensation Consulting