Salary growth survey shows finance, IT leading in salary increases, transparency rising
Canadian organizations are adjusting to current job market and economic conditions by adopting new strategies for salary planning, according to a Gallagher survey.
While salary growth is slower across the board, some sectors, such as finance and IT, continue to offer higher increases, and companies are implementing greater transparency in compensation practices.
“Canadian organizations are responding to the current job market and economic conditions, which has seen them returning to some pre-pandemic ways, while implementing measures to make them more transparent,” Gallagher reports.
Slower salary growth, but key sectors maintain higher increases
The survey, which includes data from over 500 organizations, indicates that overall salary growth in 2024 has slowed compared to 2023.
This year, salary increases have averaged 3.8%, a 0.5% decrease from the 4.3% growth seen in 2023. Projections for 2025 show a further decline, with expected increases of 3.5%.
Although salary growth has decelerated, certain sectors like finance and professional services, along with IT and communications, continue to offer higher-than-average salary increases.
Finance and professional services are leading with an average growth rate of 3.8%, while IT and communications follow closely at 3.7%. In contrast, sectors like agriculture and public entities are offering lower salary increases, reflecting broader challenges within those industries.
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Talent market in Canada remains strong
One of the key drivers behind the varied salary growth rates is the competitive nature of the talent market, Gallagher’s reports; more than one-third of organizations have set aside extra funds for “special cases”, a sign that competition for top talent in Canada remains strong despite the economic slowdown.
Another significant trend is the increasing emphasis on transparency in compensation practices, Gallagher’s report says.
The survey notes that half of the organizations surveyed indicated they are proactively implementing transparency measures, such as disclosing salary ranges and compensation philosophies, to stay ahead of legal requirements.