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Compensation Planning Outlook 2022: Pulse Check The Conference Board of Canada, December 9, 2021 Issue Briefing by Jonathan Francis

Compensation Planning Outlook 2022: Pulse Check

The Conference Board of Canada, December 9, 2021
Issue Briefing by Jonathan Francis

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This briefing summarizes the results of the survey in October-November 2021, to discover if organizations were adjusting their projected pay plans for 2022. It follows up on the Compensation Planning Outlook 2022. Document Highlights As organizations prepare for the future, they seem optimistic and are revising projected salary increases. The average pay increase for non-unionized employees is forecast to be 2.7 per cent in 2022, up from the 2.4 per cent projected in the summer of 2021. Only 12 per cent of Canadian employers surveyed do not yet have at least preliminary salary budgets. Pay freezes are also declining with only 2 per cent of organizations planning a pay freeze. As organizations focus on increasing salaries to remain competitive, they are holding steady with their 2022 short-term incentive targets. Pressure will increase on pay planners across Canada in the short term. They continue to face the challenge of offering affordable, competitive total rewards packages as inflation outpaces salary increases. Table of Contents Key Findings Bumps on the Road to Recovery Moving on Up to Higher Salary Increases Organizations Aim for Steady Incentive Pay Targets Appendix A—Methodology Appendix B—Glossary Appendix C—Respondent Profile Appendix D—Participating Organizations Appendix E—Bibliography

This briefing summarizes the results of the survey in October-November 2021, to discover if organizations were adjusting their projected pay plans for 2022. It follows up on the Compensation Planning Outlook 2022.

Document Highlights

As organizations prepare for the future, they seem optimistic and are revising projected salary increases. The average pay increase for non-unionized employees is forecast to be 2.7 per cent in 2022, up from the 2.4 per cent projected in the summer of 2021.
Only 12 per cent of Canadian employers surveyed do not yet have at least preliminary salary budgets. Pay freezes are also declining with only 2 per cent of organizations planning a pay freeze.
As organizations focus on increasing salaries to remain competitive, they are holding steady with their 2022 short-term incentive targets.
Pressure will increase on pay planners across Canada in the short term. They continue to face the challenge of offering affordable, competitive total rewards packages as inflation outpaces salary increases.

Key Findings
Bumps on the Road to Recovery
Moving on Up to Higher Salary Increases
Organizations Aim for Steady Incentive Pay Targets

Appendix A—Methodology

Appendix B—Glossary

Appendix C—Respondent Profile

Appendix D—Participating Organizations

Appendix E—Bibliography

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