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Employee expectations and employer intentions appear to be diverging this year, especially when it comes to compensation.
In a poll conducted last October by the global recruitment agency Robert Walters Inc., three quarters of managers (72 per cent) said they wanted to give their hard-working employees a pay raise this year. In a more recent poll, however, when asked how confident they were about awarding pay increases this January, 37 per cent said they had been told they didn’t have the budget to do so.
Meanwhile, the report, released as part of Robert Walters’ 2025 salary guide, said more than half (56 per cent) of the professionals surveyed were expecting a pay increase this year, and a further 43 per cent believe they are still on track for a bonus.
Some of these employees may find themselves disappointed, as thirty-nine per cent of the managers surveyed said that bonuses were “unlikely” this year. And of those who do plan to give bonuses, two-thirds say it will be “much less” than what they had promised at the start of last year.
“Managers are caught in a tough spot,” said Robert Walters Canada’s managing director, Martin Fox, adding that, despite recognizing and wanting to reward their teams’ hard work, managers are finding their hands tied by budgetary constraints.
On the bright side, 40 per cent of managers have not ruled out spot bonuses or mid-year pay rises in 2025, the survey said. A quarter of those said that positive changes to employees’ compensation packages are likely if business performance is “strong” in the first quarter.
A different survey on employee pay raises said that two in five workers had never asked for a salary increase, while 43 per cent did not receive a raise or bonus last year.
That poll, released by remote and hybrid job site FlexJobs, also said that 26 per cent of workers request a salary increase once a year.
Fox said employees will be demanding even greater clarity and transparency on pay in 2025, especially following what was a difficult year for many companies.
The Robert Walters survey said 64 per cent of employees think their employers could be more transparent around business and financial updates, and 19 per cent would like to see speedier communications on important matters.
“Employees are very aware of the economic climate… and will want to know where they stand,” said Fox. “Being honest and involving employees in their career journey will be a vital retention tactic.”
With nearly 25 per cent of managers surveyed saying that, even with a strong first quarter, money would not likely be spent on wage increases, businesses may have an exodus on their hands. According to the report, 72 per cent of professionals are looking for a new job in 2025.