Quebecers will likely receive a smaller salary increase in 2025 than in 2024, according to the latest report from the Order of Chartered Human Resources Advisors.
Quebec employers plan to grant salary increases of an average of 3.3% next year, according to the Order’s 2025 salary forecast report.
This forecast, the report notes, represents a drop of almost half a percentage point compared to what employers paid in 2024, or a 3.7% increase.
The report, based on surveys by eight compensation firms and the expectations of more than 900 companies in Quebec, also indicates that less than 5% of responding organizations anticipate a freeze on salaries and salary structures for next year. This percentage is higher than the Order’s forecast for 2024, which was 3.25%.
Variability between sectors of activity
Professional, scientific and technical services are forecast to grow by 3.8%, followed by finance and insurance (3.5%) and energy (3.5%).
Of the 13 sectors studied, public services are expected to see the most modest increase, with wage increases expected to average 2.6%.
“We sense a lot of caution within organizations. On the one hand, they want a return to normal and to levels of increases closer to their ability to pay. On the other hand, they are facing retention challenges and are carefully monitoring their positioning in relation to the rest of the market,” commented Manon Poirier, Executive Director of the Ordre des conseillers en ressources humaines agréés.
Shortage of labor for skilled positions
Although the shortage of labour is less acute than it was, according to the director of the Order, it is still present in several sectors of activity.
“In recent months, we have had less pressure for unskilled positions. But for highly skilled and specialized positions, the labor shortage has not disappeared,” said Manon Poirier.
Salary transparency
The Order wants to take advantage of the publication of the report to remind employers that “salary transparency is increasingly expected from candidates and employees.”
Last year, a survey conducted by the Order indicated that one in four people had already withdrawn from a recruitment process due to a level of salary transparency deemed unsatisfactory.
“If we look at our neighbours in other provinces, there are several Canadian provinces that have very recently legislated on salary transparency,” said the director of the Order, giving the recent example of Ontario, before adding that “it would probably be very plausible to imagine that such legislation could arrive in Quebec.”
Manon Poirier argued that salary transparency helps to “create a climate of trust that helps motivate and retain talent.”
It also allows workers to “better understand their career prospects within the organization.”
The Order of Certified Human Resources Advisors brings together 12,000 certified professionals.