compensation insights: beyond the paycheck

Welcome to our inaugural LinkedIn newsletter! This is your go-to source for all things related to jobs, the labour market, and workplace trends. 

Organizations are knee-deep in budget exercises and it’s no coincidence that we recently published our annual salary guide with Canadian employers and job seekers. "Discussions surrounding compensation have never been more crucial, with inflation putting pressure on interest rates," says Patrick Poulin, Randstad Canada’s President and Managing Director. ‘’Employers are seeking insights and data that will help them remain competitive, both in attracting and retaining talent.’’

download our Salary Guide 2024

In October, Canada's economy saw a modest volume of job creation (+18K) compared to the last two months. Wages continue to soar, and are way above inflation levels, with a growth of 4.7% compared to October of last year. 

"In the face of a growing skills shortage, employers are continuing to incorporate inflation adjustments into their compensation strategies, but with a heightened sense of caution’’, explains Minh Tri DANG, our Vice-President, Strategy and Finance. ‘’The unemployment rate finally ticked up after staying stable for three months in a row, showing that, all things considered, the downturn is unfolding, albeit very slowly. The economy remains resilient, but we may see some headwinds starting to impact the labour markets", he adds.

For more context, read our article on the impact of inflation on salaries.

money matters, but benefits too

In front of the looming threat of a recession, employers may resort to different strategies to attract and retain talent. For example, some employers may offer sign-on bonuses and tuition reimbursement to younger generations who respond better to immediate rewards.

Employers are increasingly seeking ways to enhance the job experience beyond the paycheck. This is a smart move, as job seekers are now looking for a plethora of non-material benefits.

According to  2023 employer brand research surveying Canadian employees, 76% of respondents consider non-material benefits as a relevant aspect when choosing an employer, which is not far behind the importance of material benefits such as salary (79%). Both women (79%) and the highly educated (78%) tend to place more importance on these kinds of benefits.

Our research also confirms what everybody knows: flexibility is the name of the game. Work-life balance has seen an increase in importance over the past three years and is now valued almost as highly as salary and benefits.

Job seekers have made their preferences clear: non-monetary benefits are just as significant as material benefits when it comes to choosing one employer over another. Employers should ensure they communicate their complete benefit package when seeking to attract new talent.

Need guidance on creating an enticing compensation and benefits package? Check out our comprehensive guide to employee compensation and benefits, along with tips for crafting an effective compensation package.

pay transparency: a game-changer?

On September 18th, International Equal Pay Day was observed, putting the spotlight on gender awareness, advocacy, and equity. Despite the progress that has been made, pay disparities persist for women, particularly those from marginalized communities.

Recognizing the urgency of the issue, lawmakers have introduced legislation aimed at closing the gender pay gap and enhancing transparency in compensation practices. The recently passed Pay Transparency Act of British Columbia, which came into force on May 11, 2023, mandates salary disclosure for both public and private sector employers.

‘’This legislative reform on pay transparency is a big change for employers. It is part of a growing trend in the US and Europe not only for employment law but also with respect to various ESG frameworks. I anticipate, along with other legal experts, that other provinces will follow suit, which means that employers should start now to prepare for this change. Besides, it is the right thing to do’’, says Lara Speirs, Chief Legal Officer & EVP Public Affairs. 

Can we proudly mention here that Lara, a passionate advocate for equity, has been recognized as one of Canada's most powerful women: top 100 (c-suite executive category) by the Women's Executive Network (WXN)? Randstad is grateful to have exceptional female leaders who wholeheartedly embrace our mission to build a more equitable world of work.

So, what are your thoughts on this matter? Do you believe that salary transparency can significantly enhance hiring and retention rates? 

Should you wish to kickstart your journey toward embracing salary transparency, here are some valuable tips. 

keep us on your radar

And that's a wrap for our inaugural edition! We'll be back soon with more insights into the dynamic world of work.

In the meantime, stay connected with us on LinkedIn and visit our website to stay updated on the ever-evolving employment sector and access exclusive insights. Your journey to a brighter, more equitable future in the workplace starts here.