New Survey By Express Employment Professionals: COVID-19 Takes Toll on Wages

Uncertainty about the economy stemming from the COVID-19 pandemic appears to be taking its toll on wage increases. Compared to 2019, fewer than half of Canadian hiring decision-makers (45%) expect wages to increase in 2020, according to a new survey from The Harris Poll commissioned by Express Employment Professionals.

According to the survey, 34% expect no change and 15% expect a decrease in their company’s wages. Among those hiring decision-makers who expect wages to increase, the majority say they expect increases will be equivalent to standard cost of living (59%), while fewer report they will be performance based (43%) or market pay rates (28%).

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Jessica Culo, Express franchise owner in Edmonton, Alberta, hasn’t seen her clients increase or decrease wages, but notes that “there is some uncertainty because the economy is still running to a certain extent on government subsidies.”

Culo says that once government subsidies, such as the Canadian Emergency Wage Subsidy (CEWS), come to an end, “we will have a better picture of how companies are actually doing.”

Bruce Hein, Express franchise owner in Sarnia, Ontario, has seen a similar trend, noting the majority of his clients are keeping wages the same.

For most, Hein says he routinely has “conversations with companies about keeping compensation competitive and in line with market conditions, but it is understandable that there are organizations not in a strong position right now.”

Hein also notes that “even during times of difficulty, wages generally remain steady. If necessary, companies seem more willing to lay off workers or freeze hiring instead of cutting pay.”

Brent Pollington, Express franchise owner in Vancouver, British Columbia, sees a willingness among employers to pay higher, more competitive, entry wages because “in the Vancouver market, it has always been a challenge for businesses to hire skilled and unskilled workers in the light industrial space.”

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