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Canadians Should Not Expect A Raise Or Even A Bonus This Year According To 300 Companies

Canadians should not expect major job raises or even big bonuses this year according to organizations across the country. 

Although things have progressed since last year, the job market still has some catching up to do if they want to increase compensation for Canadians, according to Normandin Beaudry's Salary Increase Survey.     

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7% Of organizations in Canada will freeze salaries in 2021

The survey in question looked at data from 300 Canadian companies in November. 

Fortunately, per the report, there will be fewer salary freezes then the previous year. In fact, the report notes that the economy has "rebounded." 

Additionally, only 7% of organizations believe they will freeze salaries in 2021. This is very different than the 20% that was originally reported from a similar survey done in the summer.

"Despite this optimistic outlook throughout Canada, it will take patience before salary freezes returns to the pre-pandemic levels of 3%," the report added.

However, for small businesses, there's an even longer way to go as 30% of freezes are forecasted for organizations with less than 50 employees, compared to 12% seen this summer.

In terms of bonuses, over 25% of companies believe they will not pay employees bonuses this year due to economic setbacks. 

And for companies that decide to go ahead and give out bonuses, about half will do so with "payments that are less than 20% of the target bonus."

"Some organizations expect to completely overhaul their programs while others will simply adjust certain performance indicators," the report said.   

Cover photo used for illustrative purposes.

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