Canadian Workers Not Optimistic About Getting a Raise in 2024: Poll

A bank customer takes money from an ATM in Montreal in a file photo. (The Canadian Press/Ryan Remiorz)

Canadian workers are feeling gloomier about their financial prospects heading into 2024, with most not expecting to see any increase in salary and compensation, a newly released poll has found.

ADP Canada’s monthly Happiness@Work Index, released Dec. 27, revealed that 56 percent of workers were “less optimistic” about getting an increase in salary and compensation in the coming year.

Fewer people are happy at work this month compared to November, the poll of 1,200 Canadians found. In fact, only 44 percent were “satisfied with their current role and responsibilities.”

“As the cost of living continues to rise, employees’ attention to compensation and benefits will do so in tandem,” ADP Canada vice-president of marketing Heather Haslam said in a statement.

“A few ways employers can support in alleviating financial stress and foster a more resilient workforce can be through conducting an audit of the current compensation and benefits, developing financial wellness programs, flexible work arrangements, as well as various professional development opportunities.”

Cost of Living

The dip in optimism comes at a time of soaring inflation and a shortage of affordable housing.

The central bank has raised interest rates 10 times since early 2022, leaving it at 5 percent over the past six months. Bank of Canada governor Tiff Macklem acknowledged that the interest rate hikes have been difficult on Canadians, particularly with the rising cost of food and shelter, but has yet to commit to lowering the interest rate in the near future.

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“Inflation has come down, but it’s still too high,” he said during his year-end speech on Dec. 15. “And the increases in interest rates that are needed to relieve price pressures are squeezing many Canadians.”

The skyrocketing cost of living has many households struggling to make ends meet, according to data collected by Canadian food banks. Food Banks Canada numbers show that nearly two million people visited food banks across the country in March.

Feed Ontario CEO Carolyn Stewart, in releasing an annual report this fall about the unprecedented spike in the province’s food bank use, said working Ontarians are “having trouble earning enough income to afford today’s cost of living, even when working multiple jobs or trying to cut expenses.”

A Statistics Canada report this summer found that the cost of groceries is up 20 percent from 2021, forcing families to either spend larger amounts of their paycheques for food or cut back on the amount they purchase.

Happiness Linked to Age, Location

Conducted in the first week of December by ADP, a management services firm, the poll also found that pay is only one factor impacting employee satisfaction rates.

Respondents’ age and where they live were also determining factors.

The baby boomers, aged 59 and over, are the “happiest generation” in the workplace, with 69 percent expressing satisfaction with their jobs, while Gen Xs, aged 43 to 58, were the least satisfied, at 64 percent.

Despite coming in ahead of Gen X, Millennials, aged 27 to 42, recorded their lowest score to date, with a 65 percent satisfaction rate, while Gen Zs (aged 18 to 26) held steady month-over-month at 68 percent.

British Columbia and Quebec had the highest number of happy workers at 69 percent, while Ontario had the lowest score on the index: 64 percent.

Compared to the 56 percent expressing less optimism about getting a raise in 2024, a higher percentage of Canadian workers expressed confidence about work-related activities in the upcoming year. Seventy-five percent said they were optimistic about taking time off in 2024 while 72 percent said the same about having a manageable workload.