The Ontario Broker - Volume 22, Issue 3 - 17

TalentTALENT
C
anada's unemployment rate hit a new record low of
4.9% in June 2022, exacerbating the labour shortage
headwinds facing Canadian employers, an issue that
looks like it's here to stay.
Preliminary results from Normandin Beaudry's 2023 Salary
Increase Survey indicate that the average salary increase
budget is expected to reach 3.9% across Canada, excluding
salary freezes. One third of participating organizations also plan
to add an extra budget to close market gaps and retain key
staff and high-performing employees. Additionally, respondents
confirmed that actual increases granted in 2022 surpassed
the average budgeted estimate of 3.4%, coming in at 3.7%
nationally-well above the 10-year Canadian average.
Concurrently, a recent LinkedIn poll conducted by Normandin
Beaudry revealed that salaries ranked third among the reasons
employees cited when making the decision to stay with their
current job or change employers.
So, what makes an employee stay? And how can companies
attract top performers, aside from their paycheque? What
drives employees to leave? What's a good offer? Turns out, it's
more than just about money.
Flexibility
Among the reasons cited to remain loyal to one's employer,
flexibility ranks as a top priority. Working from home became
widespread during the pandemic, and while challenging at first,
remote work is now highly valued by employees. This prompted
many organizations to create or update their work-from-home
policy.
As a result, no less than 75% of participating organizations
are now offering a hybrid work model. However, companies can
really stand out by the choices they offer employees, such as
the number of required in-office days or by allowing employees
to work completely away from the office, or even abroad.
Beyond remote work, organizations can also provide greater
flexibility by offering reduced or compressed schedules, thereby
allowing employees to achieve a desired work-life balance.
Such arrangements not only encourage employees nearing
retirement to stay but might also prompt those who've already
left the company to return.
Flexibility can take on many forms, in all areas of a total
rewards package, and it remains the key driver when attracting
and retaining employees. Some employers, for example, are
offering employees the opportunity to purchase vacation time
and granting additional leave, both paid and unpaid.
Career Frameworks
Employees also are looking for clearer professional
development and progression opportunities, and a career
framework (also known as career pathing) is another ace in the
hole that organizations can use to retain top talent. To maintain
a competitive edge, companies use a highly personalized
approach whereby managers engage with their employees
to identify their expectations and offer a clear career path in
line with their aspirations. To do this, one needs a workplace
environment that encourages open and free dialogue between
management and its employees.
Workplace Climate
The survey showed that workplace climate ranks fourth
among employee engagement. Respondents said that they
appreciate a positive workplace environment with caring
managers and friendly and competent colleagues. Involving
different teams in the recruiting process is a good way to
maintain and share a strong company culture and allows HR
to rely on ambassadors to convey real-life messages on the
employee experience.
Next Steps: Total Rewards
It's easy for companies to get caught-up in The Great Raise,
especially when trying to retain or attract talent, so it is critical
for organizations to sit down and make an inventory of the
different components of their total rewards packages before
even thinking about overhauling their offering.
To better understand the relative importance of each total
rewards component, employers should survey their employees
to comprehend their hopes and manage their expectations.
Authentic engagement is critical when building a successful
total rewards package.
Finally, communication plays a key role in the appreciation of
total rewards by employees. Promoting total rewards and the
company brand should be at the core of every single employee
engagement effort. When an offer is properly explained and
understood, its perceived value increases.
It's the overall package that will continue to attract and retain
talent. Keeping the discussion focused on the dollars and sense,
as opposed to dollars and cents, will help build the company
and set it on the path of success.
Preliminary results from
Normandin Beaudry's 2023
Salary Increase Survey
indicate that the average
salary increase budget is
expected to reach 3.9%
across Canada, excluding
salary freezes.
VOLUME 21 | ISSUE 5UME 22 | ISSUE 3
17
The Ontario Broker - Volume 22, Issue 3

Table of Contents for the Digital Edition of The Ontario Broker - Volume 22, Issue 3
