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Posts tagged ‘total compensation’

2017 Trends and the Impact on Workforce Compensation

Staying up-to-date with current marketplace and compensation trends has become increasingly important in light of many of the labour market changes that have occurred, and are still ahead.

This year brought a rise in Canadian employment. According to Statistics Canada’s October 2017 Labour Force Survey, on a year-over-year basis, total employment rose by 308,000 (+1.7%), with full-time work increasing by 397,000 (+2.7%) and the number of people working part time declining by 89,000 (-2.5%). On a year-over-year basis, total hours worked were up 2.7%.

It is undeniable that 2017 has brought much change to Canada’s labour market. From increasing pressure to raise minimum wage, the evolution of Bill 148 in Ontario, developments in globalization, potential changes in NAFTA, and the rise of virtual workers- the intricacies related to the manner in which we work, and are compensated have been impacted.

Change in Minimum Wage
October 1, 2017 marked the fourth consecutive year of minimum wage increases. Minimum wage now ranges from $10.35 to $13.60 across Canada. With continuing pressure to increase the minimum wage as high as $15/hour by 2019, as an employer, it’s essential to assess your current staffing levels and create a compensation strategy that works with the inevitable labour cost increases.

Bill 148 – Fair Workplaces Better Jobs Act

Bill 148 has now passed third reading which means that it is in the final stages of being enacted into law.  It will cause substantial changes to compensation and staffing requirements in Ontario. The impetus for this change is the influx of economic change within society has put an economic strain on Ontario households.[1]

Amongst the list of items, this bill will:

  • Increase the minimum wage to $15/hour by 2019
  • Require equal pay for full-time, part-time, contract, temporary and seasonal labour
  • Provide for scheduling, vacation and personal emergency leave entitlements

Economists predict a minimum wage increase to $15/hour will create a ripple effect for employees who already earn wages in that bracket. Also, the increase in wage means employers will pay more for items calculated as a percentage of pay, such as, payroll, taxes, CPP, EI, benefits and company pension attributions.


Globalization is a trend that has influenced the Canadian Manufacturing sector for many years. Tariff Reductions, Free Trade Agreements and, reductions in transportation and communication costs, have fueled the growth of this trend.[2] Manufacturing industries within Canada have faced intense international competition, especially from imports from low-wage developing countries. The 2017 increase in minimum wage, and the potential minimum wage increase only widens this gap in competition – making it difficult for Canadian manufacturing companies to compete.

In addition, the internet, technology and computer networking facilitates the outsourcing of other employment sectors such as Business, IT and Customer Service. As an example, it isn’t uncommon to contact a Canadian company’s help desk and be assisted by a representative in another country.

The increase in these globalization trends continues to affect the Canadian marketplace, and inevitably, the workforce’s compensation in these sectors.

The Re-Negotiation of NAFTA

The 2017 administration change in the United States brought the imminent re-negotiation of the North American Free Trade Agreement. A result that has brought the possibility of increased border taxes on goods imported to the United States. This pending change would have a huge impact on how Canadians trade, forcing us to consider trade options with Europe and Asia, and, putting Canadian Businesses in direct competition with American business.[3]

The Rise of Virtual Workers

One growing trend in the 2017 Canadian labour market is the rise of virtual workers. The global digital marketplace for workers, with online platforms such as and UpWork, allow candidates from all over the world to create profiles, advertise their skills and bid on work. This trend is causing the dissemination of a variety of traditional labour positions such as administrative assistants, copywriters and marketing assistants. Employers are now able to source out projects to these sites where the cost of labour is cheaper – ultimately increasing their bottom line and affecting compensation.

Need help building a compensation plan that considers trends? Not a problem, we’ve done it for you! Adecco’s 2018 Compensation Guide provides insights into Canadian compensation data that’s segmented by role, province and company size.

Contact your local Adecco branch to receive your complimentary copy of our 2018 Compensation guide. Stay tuned for the digital version coming out in early December.

For more information and articles, visit our Employer resources page on our website.


[1] Bill 148: Fair Workplaces, Better Jobs Act, 2017, September 2017

[2] The Changing Workplaces Review – Final Report – Chapter 3, May 2017

[3] Labour Force Survey, October 2017


How to Ask for a Raise

We’d all like to make more money – even if we don’t deserve it. But what if you think you really do? How to ask for a raise is easily one of the most confusing and intimidating conundrums we face if only because of the fear of rejection. Not getting what we want – or even worse, what we feel we deserve – can result in a flurry of emotional responses, including questioning our self-worth…Or at least our self-market value. Am I asking too much? Am I underappreciated? Should I start job hunting? What if no one else will pay what I want either?

Here’s some advice on how to ask for a raise – and raise your chances of getting it: Read more

Building an Olympian Workforce

With the 2014 Winter Olympics in Sochi, Russia revving up, people are not only marveling at the abilities of Canada’s athletes, but also at the level of resolve it took for them to make it there. It begs the question, however, about what qualities drive them to such success? And how can employers harness such qualities to go for gold in the arena of business? Read more

Dear Adecco: Small Business Owner Tips #3 – Total Compensation

If you’re a small business owner, you know how costly it can be to offer your best staff members the kind of total compensation they deserve. But all is not lost. Even for the smallest of businesses, there are other forms of compensation far less costly – and more effective – than cash that can help you retain your top performers, and we explore these alternatives in our third installment of Dear Adecco.

Remember: Even though the exchanges in this series are contrived, they address very real concerns that many a small business owner and supervisor think about every day. Read more

Stay Competitive with Total Compensation

As the current marketplace becomes increasingly competitive, it is imperative that organizations offer fair total rewards packages in order to attract and retain top talent. Employees who are satisfied with their pay, in addition to other factors, such as management opportunities, are less likely to look for work elsewhere. However, those who are dissatisfied or who feel undervalued will seek alternate employment. It is important that employers assess and even modify compensation structures on a regular basis to ensure they’re always offering competitive and meaningful packages to their employees. Read more

Money Isn’t Everything: What Truly Motivates Employees

What does it mean to be successful? Is success defined by happiness or riches? Or are the two inextricably intertwined? These questions have often dogged employers in their efforts to understand employee motivation.

The truth is, many people can love a job that pays very little, and hate a job that pays very well. But when an employee loves what they do, they’ll naturally strive to be successful at it. They’ll work harder and longer, think more creatively, and do whatever it takes to get things done. Read more