2 in 5 employers boosting starting salaries

By HR Reporter |

In a very tight labour market, nearly half of managers (47 per cent) are reporting an increase in voluntary turnover within their department in the last year.

To meet these challenges, two in five (42 per cent) are increasing starting salaries, finds a survey by Robert Half Canada.

To further entice potential candidates:

• 34 per cent are offering remote options
• 31 per cent are providing signing bonuses
• 31 per cent are loosening education, skills or experience requirements
• 30 per cent are evaluating candidates outside of their company’s geography and allowing new hires to live anywhere.

“While the Canadian economy continues to fluctuate, workers remain in the driver’s seat,” says Deborah Bottineau, district director at the company.

However, employers must act with caution when it comes to making compensation changes in hopes of meeting the challenge of the labour shortage, says Lori Wisper, leader for work and rewards global solutions at Willis Towers Watson (WTW).

Hiring continues to be a struggle for employers, with 89 per cent of managers saying it is challenging to find skilled professionals, according to Robert Half Canada. This is primarily due to a lack of qualified talent (40 per cent), and candidates’ salary expectations being higher than what their company is willing to offer (22 per cent).

In addition, 79 per cent are concerned about more employees quitting.

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