2024 salary increases : Organizations maintain their budget

In September 2023, Normandin Beaudry published the results of its annual Salary Increase Survey. As companies continue to finalize their strategies moving into the new year, determining 2024 salary increase budgets remains a top priority. In response, Normandin Beaudry launched an updated pulse survey in November to re-evaluate 2024 market forecasts.  

In just two weeks, more than 300 Canadian organizations participated in our pulse survey to report how their original 2024 salary budget planning has changed since last summer. Preliminary results signal that average salary increase budgets (excluding freezes) in Canada are on balance, still aligned with initial forecasts (3.6%). In total, 41% of respondents have revised their initial salary increase budgets for the coming year, and of those, 56% decreased their budgets while 44% reported an increase.  

For organizations reporting a decrease of their original 2024 budget forecasts, the most common rationale included:* 

• Cost containment efforts (68%); and 
• Significant compensation increases previously implemented over the last several cycles (30%). 

Beyond the monetary aspect of compensation, companies are turning their attention to other HR strategies, including:* 

• Ensuring competitiveness of total rewards programs (70%); 
• Focusing on employee listening and communication (51%); and 
• Reviewing benefits and pension/savings plans to fit employee demographic needs (36%). 

¹ Consists of the salary increase budget and the additional budget. The data is less than the sum of the salary increase budget and additional budget averages because not all organizations have an additional budget.

The 2024 Salary Increase pulse survey is still open until December 22. Participate today and receive the detailed results in January.

* An organization could check several answers.