Compensation is a critical component of employee satisfaction. A good salary is not only a key consideration for job seekers when choosing to accept an offer, but it can also entice workers to remain at a company.
Typically, a tight labour market will result in higher wages. After all, in a job seeker’s market, companies need to pay competitive salaries in order to attract and retain talent. However, while Canada’s employment rate remains low, this hasn’t yet translated into wage growth. As a result, sensitive conversations around compensation are likely on the horizon for many employers.
If given the choice, most of us would opt to make more money. But, how many workers in Canada are actually planning to ask for a pay raise this year? Who’s most likely to ask for one? And, how much are they going to ask for?
Indeed recently tackled all of these questions and more in a recent survey of 1,000 workers in Canada. Let’s take a look at the results.
53% of workers in Canada are planning to ask for a raise in 2019
Our survey shows that the majority of workers in Canada are discontent with their current salaries. Only 13% of workers in Canada say they are satisfied with their current salary – down 4% since last year, demonstrating that salary satisfaction is steadily declining. Moreover, nearly nine in 10 people (88%) would like to earn more in order to live comfortably in Canada. In order to do so, respondents say that they’d like to earn, on average, an additional $11,430.
Given workers’ dissatisfaction with their salaries, it’s no wonder that they’re planning to take action this year to earn more. Over half (53%) of workers in Canada are definitely (21%) or possibly (32%) going to ask for a pay raise in 2019.
When looking at the frequency of pay raises, on average, respondents received a pay increase approximately a year and a half ago (1.53 years), with 45% of respondents receiving a salary increase between one to two years ago. However, 14% of respondents state they’ve never seen a pay change. So while wages are in fact going up, they’re not increasing at the desired rate. It’s projected that Canadian employees will witness a pay increase of 2.8% in 2019. However, our survey reveals that, on average, respondents want a 6% increase, down slightly from 7% in 2018.
58% of millennials are planning to ask for a raise in 2019
Some groups are more likely to ask for a raise this year. While 51% of workers aged 55 and above are definitely or possibly going to ask for a raise, millennials are more likely to request one. In fact, 58% of respondents aged 25-34 say they’re going to ask for a pay raise in 2019. Not only do Millennials tend to earn less, but they’re often faced with student debt as well as high housing costs and increasing interest rates, making it much more difficult to save.
Men are also more likely to ask for a raise – 24% of male respondents will definitely be asking for a pay raise in 2019, compared to 20% of female respondents. Men are also likelier to ask for more – 44% of male respondents are planning to ask for a 6% to 10% increase compared to approximately 36% of female respondents. Instead, women are more likely to be conservative in their demands, with more than half (59%) requesting for a raise of up to 5%.