Global consultancy finds that Canadian employers have increased their merit budgets to 2.6% in 2019 – an increase of 0.1% from the year before – as employers seek to define their employee value proposition
Leading global consultancy Mercer today announced the findings of its 2019/2020 Canadian Compensation Planning Survey, which include the finding that merit increase budgets have increased slightly in 2019, to a level of 2.6%, excluding those organizations which have implemented salary freezes. Merit increase budgets are projected to remain at this level in 2020.
“Getting compensation right is critical to your employee value proposition,” says Gordon Frost, Partner and Career Business Leader at Mercer Canada. “When you have the right compensation strategy in place, you can bolster employee retention, and build a thriving workforce.”
Prior to 2019, merit increase budgets had held steady at 2.5% for the preceding three years. However, this year’s topline numbers belie considerable variation sector-by-sector, with ‘hot’ sectors, like technology, choosing to allocate half a percentage point more (3.2%) to merit increases, reflecting a more robust competition for talent.
Additional survey findings include:
652 organizations participated in Mercer’s 2019/2020 Canadian Compensation Planning Survey, representing the breadth of the Canadian economy.
To provide further insights into how compensation can elevate the employee experience and improve your employee value proposition, Mercer is holding Compensation 2020: Elevating the Employee Experience events across the country. Register today on mercer.ca.
Mercer believes in building brighter futures by redefining the world of work, reshaping retirement and investment outcomes, and unlocking real health and well-being. Mercer’s approximately 25,000 employees are based in 43 countries and the firm operates in 130 countries. Mercer is a business of Marsh McLennan (NYSE: MMC), the world’s leading professional services firm in the areas of risk, strategy and people, with 83,000 colleagues and annual revenue of nearly $20 billion. Through its market-leading businesses including Marsh, Guy Carpenter and Oliver Wyman, Marsh McLennan helps clients navigate an increasingly dynamic and complex environment. For more information, visit mercer.ca. Follow Mercer on LinkedIn and Twitter.