Compensation Planning Outlook

Salary Increases Lag Behind Inflation

Each year, the Conference Board’s Compensation Planning Outlook provides a trusted forecast for compensation and HR professionals across the country. This report gives the most up-to-date data, essential for any organization looking to secure the talent they need to succeed in an increasingly competitive marketplace.

The data briefing for the Compensation Planning Outlook summarizes the results of the Conference Board’s annual survey for non-unionized employees. Data for unionized employees will be captured in this year’s Labour Relations Outlook.

Highlights from the Compensation Planning Outlook Pulse Check Survey

4.0%

Projected average salary increase for 2023 [up from spring projection]

3.3%

Health care and social assistance was the only industry that did not change its projected salary increase

3.1%

Number of organizations that plan to freeze salaries for all employee groups in 2023 [down from spring projection]

70%

Organizations that plan to maintain the STIP target amounts they implemented in 2022.

Based on insights from 228 organizations that participated in the Fall Pulse Check for the Compensation Planning Outlook 2023 survey, this data briefing provides comprehensive information on: 

  • projected salary increases for 2023
  • salary freeze projections
  • projected STIP payouts

Despite economic insecurity, projected salary increases have improved since the spring of 2022, fewer organizations plan to implement salary freezes, and most businesses are holding steady on their 2023 payout targets for STIPs.

Based on the insights of 443 Canadian organizations—representing over half a million employees—who participated in the Compensation Planning Outlook 2023 survey, this data briefing provides comprehensive information on:

  • salary increase projections for 2023
  • projected STIP payouts for the upcoming fiscal year
  • salary freeze patterns for different employee groups
  • the impact of hybrid and remote work arrangements on regional rates of pay

Highlights from the Compensation Planning Outlook Spring Survey

3.3%

Projected average salary increase for 2023

9.0%

Organizations who plan to implement pay freezes in the upcoming fiscal year

3.6%

The highest provincial projected increases for 2023— Prince Edward Island and Nova Scotia

75%

Organizations that have not implemented new compensation policies to account for rising inflation

Tops of skyscrapers

Testimonial

Client

I can always count on The Conference Board of Canada to give me the most up-to-date and accurate salary planning data. Year after year, I eagerly await this trusted publication to plan my company’s salary range adjustments and merit budget.

Woman looking at co-worker during a meeting

Become a Subscriber

Critical intelligence in the war for talent. Our Complete Access Human Resources package prepares you and your organization for the workforce of today and tomorrow.