Blog

It’s time to ask for a salary increase:

If you are at all interested in the labor market in Canada, you certainly know that there is an unprecedented labor shortage across the country. Statistics Canada announces the figure of 731,900 vacant positions in the second quarter of 2021. Quebec is the province in which the workforce is lacking the most.

This situation is explained by the fact that even before the pandemic, Canada lacked workers in several sectors. This finding is aggravated by the economic recovery expected following the lifting of the various health measures.

In this profitable context for workers, it is surely the time to seize the opportunity to ask for a salary increase or more benefits at work. We explain why.

Inflation and labor shortage singled out

A few days ago, the Order of Certified Human Resources Advisors of Quebec published a report in which it forecast a record increase in salaries in 2022. According to Manon Poirier, Director General of the Order, the economy is more robust this year and the shortage of workers is increasing, which explains this unprecedented increase since 2013.

The Order which also maintains that if the record inflation that we have seen since the pandemic persists, this situation should also continue. You should know that over the past year, Canada experienced 3.5% inflation and Quebec 4.1%.

As a result, several sectors will experience an increase more than others. We can cite finance, insurance and information and communication technologies with an increase of 3.3%, while the health, arts and public administration sectors will increase their salaries between 2, 3% and 2.7%. As for companies with less than 100 workers, they will increase their wages by 3.1%.

Increase salaries to retain talent

It is an old recipe, but one which may pay off in all points of view. Companies that will increase wages therefore hope to retain their talents and attract new employees.

While we have repeatedly shown that salary alone is not enough to retain talent, it does add up to other benefits. Thus, in the current context, employee requirements are complementary: competitive salaries, group insurance, retirement plan, flexibility, vacation, performance bonuses, etc.

Moreover, more and more companies display salaries in job offers as an argument for attracting talent. In a context of labor scarcity, all means are good to stand out.

It’s always difficult to ask for a raise or renegotiate it. A first step will be useful to you: that of finding out about the salaries offered for your profession in your region or province. For example, Jobillico’s salary tool can help you with this.

By relying on the salaries of your profession, you will be able to better negotiate your salary increase by having reliable data.

In general, there are tips for negotiating your salary with your current employer or a future employer.

Employers will prefer to raise you up, rather than let you go and lose more money. According to a survey, in Quebec alone, manufacturing companies have lost $ 18 billion in two years because of the labor shortage.

To finish…

So expect to be better paid in 2022. The lack of workers in several sectors will certainly work in your favor. So be ready to negotiate your salary and prepare your arguments to better justify your claims.

Back to top button

Adblock Detected

Please disable your ad blocker to be able to view the page content. For an independent site with free content, it's literally a matter of life and death to have ads. Thank you for your understanding! Thanks