Quebec companies are forecasting average wage increases of 4.1%, excluding freezes, in 2023, placing the province second in the country.
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The Quebec Employers Council (CPQ) held its 2023 salary forecast symposium on Thursday.
“Considering that there is a shortage of labor and a record number of vacancies, the momentum of historical salary increases is not surprising. Employers must be attractive in their compensation offer. This situation intensifies from year to year. Of course, inflation adds a layer. On the other hand, the room for maneuver of a large number of companies finds itself reduced in this unprecedented context, especially since a recession is not excluded”, declared in a press release Mrs. Norma Kozhaya, Vice-President at the research and chief economist of the CPQ.
Wage freezes are becoming increasingly rare and only 1% of companies plan to use them, according to the study.
A few sectors stand out in terms of wage increases: information technology (4.7%), real estate services (4.65%), professional services (4.5%) and manufacturing (4.4%). %).
To counter inflation, about a third of organizations would consider offering off-cycle adjustments, according to one of the surveys.
“The data shows that employers are sensitive to the reality of inflation and the impact on staff. They have no choice but to be proactive because the labor market is changing extremely rapidly. We are moving away from the days when the performance appraisal was done once a year. We also see that the levers for retaining employees are diversifying and multiplying,” said Mr. Karl Blackburn, President and CEO of the CPQ.