Not-for-profits and charities west of Manitoba are still figuring out the scope of their salary increase budgets. Proposals indicate they’re planning for an average three percent bump in 2026. Normandin Beaudry’s latest salary increase pulse survey collected perspectives from almost 400 organizations during the last quarter of 2022. The results show that a majority of firms are opting to stick to their original salary budget plans after all.
The survey revealed that almost three-quarters of organizations are remaining firm on their annual salary increase budgets. These budgets were established last summer, and there are no plans to amend them. This range of consistency points to a degree of stabilization and normalization for industries as businesses are adapting to the new economic environment. Yet, many corporations are taking a second look at bottom line dollar signs. Nearly one in six organizations taking our survey are reducing their projected salary increase budgets. This indicates they’re being very deliberate and conservative about responding to external economic pressures.
Nearly one in 10 organizations plan to increase their starting salary increase budgets. This change reveals a stark contrast in corporate strategy. Many of the best firms are doing all they can to attract and retain talent in today’s hyper-competitive talent climate. For most organizations, perhaps even yours, the outlook continues to hold their budgets conservative, with only a three percent increase expected for the year ahead. This projection does not assume any salary freeze.
Darcy Clark, senior principal of compensation at Normandin Beaudry, points to one major trend. First, firms are being extremely conservative and slow-rolling new dollars into their salary increase budgets. He explains that this is indicative of a bigger pattern. Due to persistent economic volatility, employers are starting to reconsider their financial obligations.
Just earlier this year, salary raise expectations for non-unionized staff averaged 3.1 percent. That figure is the result of survey responses gathered over the summer of 2023. Yet with the latest numbers suggesting a turn towards starkly more conservative estimates, organizations are taking another look at their budgets, recalibrating as needed.
