The annual Compensation Best Practices Report (CBPR) you know and love now has an all-Canada edition! While the full report is in its eighth year, this is the first year we’re able to detail Canadian-specific compensation practices — we’re excited to share with our Canadian readers what other companies in their country are doing when it comes to setting pay for their employees.
In this report, we detail compensation practices in base pay, variable pay, benefits, strategy, grades and ranges and the links among compensation, culture, performance and engagement. Here are some highlights:
- Only 13 percent of surveyed companies gave an average raise of 3 percent in 2016 (14 percent budgeted for it), while other respondents went higher or lower. Seven percent actually budgeted more than 5 percent for increases.
- Most Canadian organizations in the report have a compensation strategy, or are working on one — 38 percent and 36 percent, respectively.
- The top three reasons for changing compensation strategy among organizations were retention (78 percent), recruitment (71 percent) and the need to pay more for hot skills (58 percent).
- Canadian companies count retention among their top talent concerns. Half of Canadian organizations reported this year that they agree or strongly agree that employee retention is a major concern for the company.
- Nearly 80 percent of respondents said some type of variable pay was part of their compensation structure.
- Many surveyed companies have aspirations of increasing transparency about compensation: Twenty-nine percent said they hope to be at Level 3 on PayScale’s Transparency Spectrum next year, and 22 percent hope to be at Level 4.
Wanna dig deeper? Grab your copy of the 2017 Compensation Best Practices Report: Canadian Edition for many, many more insights.
Happy learning!
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