Heading into the new year, many companies are rolling over their fiscal year with added financial pressures.
“Margins will be squeezed and people will be having a hard time finding the money for their budgets for 2023,” said CEO of North Saskatoon Business Association (NSBA) Keith Moen.
An inaugural compensation planning survey done by Eckler shows Canada’s average base salary is expected to increase 4.2 per cent in 2023, leaving businesses with another monetary concern.
There is no surprise to CEO Prahba Ramaswamy with Saskatchewan Chamber of Commerce that employees will be looking for a raise after being hit with a 6.9-per cent inflation rate this year.
Between inflation and personal pressures, pay raises became a hot topic in 2022 for residents with bills, food and families to pay for.
“Our businesses are facing pressures like they’ve never faced before,” said Ramaswamy.
And according to the Canadian Workplace Culture Index, 77 per cent of employees in prairie provinces would leave their job for the same position at another company for a 10-per cent pay increase.
“There is some job hopping or poaching if you want to call it that’s going on,” said Moen.
However, compensation may look different in 2023. Companies may be veering away from the traditional pay bump and rather focusing on benefits, retirement funds, workplace flexibility and workplace morale to make a job more attractive.
“If you want to keep great people, you have to find ways to help them out at the same time you’re trying to grow your business,” said Jason Aebig, CEO of Greater Saskatoon Chamber of Commerce.
Sutton Benefits and Pension will be hosting two webinars in December to show companies how they can get creative with compensation and teaching them to look at it in a more holistic way.
“It’s about salary but it’s about total compensation as well,” said Sutton President Andrea Hansen.
Their hope is to give businesses another tool on their belt when it comes to combating financial pressures in the coming year.