Chasing Increased Wages and Benefits During Inflation
As inflation continues to pound Canadians, many employees are expecting significant raises to chase the falling dollar and increased costs. Surveys filled out by employers confirm that they are also expecting to dole out raises and improvements to benefits during inflation as a means to attract new talent, and retain existing employees. But will it be enough?
2022 has been a year of high employee turnover for employers. Even more employers have noted an increased difficulty in filling vacancies. As employers compete to fill open positions, it becomes a battle of raising wages and increased benefits to attract the best talent.
This results in conflicts with existing employees, as they want to see this increase in pay alongside their new peers, or they may consider jumping ship to a new workplace with better compensation. These factors are contributing to the rising inflation, as increasing wages are not keeping up with the cost of living. Many employers have expressed frustration that it is impossible to offer the increased wages and benefits during inflation that employees are looking for, while employees complain that most employers are not offering competitive compensation packages in today’s economy.
As we move into the end of the year and year-end wage reviews, employees will be expecting to see pay increases that will keep their compensation up to date with the current cost of living. Some employers are considering more creative options to improve overall compensation, such as increased sick leave, vacation, and healthcare incentives like gym membership and mental health resources. Employees will need to balance the overall value of these incentives when deciding if there are greener pastures elsewhere in this turbulent economic period.
If you have questions about your employment rights or obligations, we encourage you to reach out to an experienced employment lawyer. Whitten & Lublin are here to provide insight and advice into your specific circumstances. If you are looking for employment lawyers and would like more information about what Whitten & Lublin can do for you, please contact us online or by phone at (416) 640-2667 today.
Author: Rachel Patten