Majority of employees plan to leave their jobs if they don't get a raise, new research reveals
Employers across Canada are urged to resolve pay discrepancies among staff if they want to retain talent, after new research from business consulting firm Robert Half revealed that more than half of surveyed companies have such monetary issues.
Nearly seven out of 10 (69%) of surveyed C-suite executives said that there were salary discrepancies between their new hires and more tenured staff over the past year. Among them, only 57% are regularly reviewing compensation plans and granting pay bumps for existing employees, when appropriate, to align with current market rates.
David King, Canadian senior managing director of Robert Half, advised companies to acknowledge and resolve these pay discrepancies so they can retain talent and remain competitive.
"Companies should take deliberate steps to improve their compensation strategy, including benchmarking salaries, conducting pay equity reviews, and making adjustments as needed to ensure all employees are paid fairly for their work," he added.
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His advice is timely as a separate survey also found that half of employees plan to ask for a raise this year, with majority of them saying they will leave their posts for greener pastures if they don't receive a raise. According to the report:
- 36% will look for a new job with higher pay
- 25% will ask to revisit the salary conversation in a few months
- 17% will ask for more perks
The most cited reason for a pay bump by employees, with 31%, is that it will address the higher costs of living in Canada. Another 18% said this will account for additional work they have been undertaking, while 16% said it will reflect current market rates.
King said that aside from pay bumps, companies should also try offering a better benefits package that can boost employees' experience with the company.
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"Along with addressing salary gaps, companies need to provide a fulsome compensation and benefits package that promotes a positive employee experience overall," the official suggested. "That includes offering opportunities for career development and advancement, additional paid time off, flexible schedules, and remote or hybrid work options."