On September 21, the Ordre des conseillers en ressources humaines agréés published its salary forecast for 2024. Our colleague Alexandre Dumouchel gives you his recommendations to help you find your way.
Economic context and outlook for 2024
Despite Canada’s monetary policy, which has partially slowed the rise in the cost of living, the Quebec Consumer Price Index has risen 3.8% so far in 2023.
With this continued high rate of increase, it’s not surprising that projected compensation increases are also substantial. For 2024, Quebec organizations are forecasting salary increases of 3.7%, while structural increases are forecast at 2.8%.
Salary and structural increases
Year after year, the forecasts include both salary and structural increases, but how can we understand the nuance between the two?
In a nutshell, salary structure increases refer to the evolution of salary scales for organizations that have structures that guide their compensation. This influences the salary ranges available for each job.
Within those ranges, other factors such as employee performance will influence the specific increase granted to each individual. Projected salary increases for all employees are therefore projected salary increases.
Understanding and managing these two aspects is essential to maintaining both the competitiveness and equity of your compensation practices within your teams.
Contrasting trends and challenges for organizations
Inflation combined with labor shortages means that salary increase projections remain high through 2024. However, predictions of an economic slowdown are causing a growing number of organizations to become more cautious.
In such a context, where financial resources can become sensitive, it is vital for companies to define a total rewards package that differentiates them from their competitors. In particular, their ability to attract and retain employees is at stake.
If you have any questions, please don’t hesitate to contact us at info@riouxrh.ca.
