COMP NEWS – A new survey out of the Canadian tech sector shows that industry salaries are still growing despite indications of a slowing labor market.
VANCOUVER, British Columbia–(BUSINESS WIRE)–TAP Network’s 2023 Tech Salary and Total Rewards Survey, reporting Canadian tech sector compensation and policy data from 204 companies, including salary and incentive data for 30,600 incumbents (individual employees) across 234 jobs, shows balanced headcount growth for the sector and continued salary pressure in key jobs where skills shortages persist.
The projected salary increase budget for 2024 is 4.3%. While still above the 5-years preceding, it is below the 2023 actual salary increase budget of 4.5%, and is down from the 2022 high of 6.5%.
“Business performance was a key factor in setting 2023 salary increase budgets but so were inflation and employee retention,” said Stephanie Hollingshead, CEO of TAP Network. “The data is showing us that new hire pay pressure has reduced compared to 12 months ago, and is currently isolated to high demand roles and more senior or specialized positions. Pay for new hires is still competitive and positioned similarly to those already in the role. With this external pressure, companies are making targeted market and internal equity adjustments for existing employees.”
The median salary increase for employees who stayed in the same position two years in a row remained high at 7.5%, indicating that organizations are still relying on off-cycle pay increases to address retention concerns, counteroffers, market adjustments and internal equity.
Some of the fastest-growing benefits seen in the survey were condensed work weeks and extra paid time off. Hybrid and remote work arrangements were also popular benefits.
Fastest Growing Benefits in Canada’s tech sector
Perquisites and benefits like RRSP matching, paid time off to volunteer and condensed work weeks are some of the fastest growing perquisites and benefits in the sector. Both RRSP matching and family leave top-up benefits have steadily grown over the years as a benefit offering in Canada’s tech sector and have reached majority with over 50% now offering these benefits.
Competitive Advantage from Remote and Hybrid Work Arrangements
“Remote and hybrid work arrangements continue to dominate Canada’s tech sector,” stated Hollingshead. “According to this year’s survey participants, 38% of companies are operating fully remotely and 42% are operating with hybrid work models. People and Culture leaders are telling us that these flexible work arrangements are providing effective competitive advantages in attracting and retaining talent in roles where labour shortages persist.”
