Impact of Inflation on Compensation and Benefits
Record inflation in Canada has left all Canadians feeling the impact of the increased cost of groceries, gas, basic household necessities and more. In 2022, inflation reached a three-decade high, and Canadians are being forced to spend more money on essential items just to get by. The impact of inflation on compensation and benefits is being seen all around as many Canadians are asking their employers for raises to offset the significant increases in living expenses that they are now facing.
70% of employers polled, “likely” to offer their employees a pay increase
Recent polls suggest that almost 90% of employers in Canada are either “somewhat” or “very” concerned that employees may resign if they do not offer their employees a raise to offset the inflated cost of living. As a result, approximately 70% of employers polled indicated that they are “likely” or “very likely” to offer their employees a pay increase.
While it has always been true that many employees will leave one employer for a more lucrative payment opportunity with another employer, this has become a heighted risk for employers now that the impact of inflation on compensation is widely an issue that employees are facing with increased living costs at home. Inflation has led to less disposable income for employees, and this will lead to employees placing a higher priority on their compensation level than they might have done so before record inflation levels were reached.
Looking to renegotiate your employment contract?
If you are an employee seeking to renegotiate your employment contract or looking to have a new employment contract reviewed as a result of pursuing a new opportunity elsewhere, we recommend that you seek legal counsel to better understand your rights and responsibilities. We at Whitten & Lublin are happy to provide insight andImpact fo inflation on compensation 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: Nasyr Asmi