Employers set aside less for 2024 pay increases: survey

Canadian employers are putting aside less money for compensation in their 2024 budgets as labour market pressures ease, according to recent survey data from a human resources consulting firm.

Mercer released the results of its August QuickPulse Canada Compensation Planning Survey on Monday. It found that employers are projecting “more modest” annual increases for compensation budgets in the upcoming year.

For non-unionized workers, the survey found that employers are projecting 3.3 per cent for merit increases and 3.7 per cent for total compensation budget increases for 2024, compared to 3.6 per cent and 4.1 per cent respectively for 2023.

“Although Canada still has an extremely tight labour market, indices show that the market is stabilizing,” Mercer said in a press release Monday. “As a result, the use of pay increases to respond to labour market pressures has slowed down.”