Survey finds pay frustration, burnout, and income strain test employers’ retention strategies
Nearly one in three working Canadians say they will look for a new job in the next 12 months if they do not get a pay increase – and more than four in ten say their salary makes them feel “undervalued” by their employer.
A new survey by H&R Block Canada reports that working Canadians hold conflicting views about their jobs and their pay.
Nearly two-thirds (64 percent) say they love their job, yet 51 percent feel fairly paid while 49 percent feel underpaid.
Overall, 70 percent believe their income is not reflective of today’s high costs of living.
Respondents say a single adult needs nearly $85,000 a year to get by and put a little aside into savings or for an emergency fund.
This amount varies by region: nearly $93,000 in British Columbia, $89,000 in Alberta, $87,000 in Ontario, $82,000 in Saskatchewan and Manitoba, and $76,000 in Atlantic Canada and Quebec.
More than a third (35 percent) of Canadians say they cannot stretch their paycheque to their next paycheque and often rely on credit cards, overdrafts and bridging loans.
The survey finds this is a bigger issue for Canadians in Alberta, Saskatchewan and Manitoba (42 percent), followed by Quebec (39 percent), Atlantic Canada (36 percent), Ontario (31 percent) and British Columbia (28 percent).
Pay levels and raises sit at the centre of many responses.
Overall, 63 percent of working Canadians say if they were paid more, they would be more motivated to work harder.
At the same time, 44 percent say their frustration with their pay makes them less willing to work harder.
This sentiment is more prevalent among younger Canadians at 47 percent among 18–34 year olds, compared to 38 percent among those aged 35–54 and 27 percent for those 55 and older.
More than 4 in 10 Canadians (43 percent) say their salary makes them feel undervalued by their employer.
Three in ten (30 percent) say that unless they get a pay increase, they will look for a new job in the next 12 months.
Those aged 18–34 are the most motivated to switch jobs for more pay (39 percent), followed by 29 percent of 35–54 year olds and 16 percent of Canadians 55 and older.
Nearly half of working Canadians (45 percent) say they would be willing to do a job they dislike if it meant earning more money.
Six in ten working Canadians (60 percent) received a pay increase in the last 12 months. Of these, 49 percent received an increase without a promotion and 11 percent as part of a promotion.
Nearly a third (29 percent) have not received an increase and do not expect one in the next six months. Among those who did receive an increase, the overall mean average was 4.3 percent.
Canadians who identify as male report an average 4.9 percent increase, compared to 3.7 percent for Canadians who identify as female.
Reactions to these increases are mixed.
Overall, 35 percent of those who received an increase say they felt happy with the amount and 38 percent felt neutral.
More than 1 in 4 Canadians (27 percent) say they felt disappointed or even offended by their pay increase, with 21 percent disappointed it was not higher and 6 percent offended by the amount.
The survey also points to strong views on employer practices.
A total of 90 percent of Canadians say employers often use the excuse of it being a challenging economic time to justify not providing pay increases.
Overall, 74 percent think annual increases are no longer the norm, and 83 percent say employers do not give pay increases as much in today’s reality due to their focus on profits versus retaining employees long-term.
Two-thirds (67 percent) say employers are often biased in giving increases to employees they like the most.
Privacy and comparison also emerge.
Nearly half of working Canadians (46 percent) say they are as private about their income as they are their nudity, while 44 percent say they try to find out what their peers are earning to assess whether their own income is fair or not.
Against this backdrop, the survey highlights tax measures that can affect household finances.
“We can’t help with pay increases – but we can help put money back into Canadians’ pockets,” said Yannick Lemay, tax expert at H&R Block Canada.
He points to the Canada Child Benefit, the Canada Groceries and Essentials Benefit, the Canada Workers Benefit, the Disability Tax Credit, tuition and education credits, the Medical Expense Tax Credit, the Child Care Expense Deduction and RRSP contributions as examples of credits, benefits and deductions that can influence tax refunds.
