'A tough spot': One-third of Canadian managers unable to offer raises

Over half of Canadian professionals (56 pe cent) are expecting a pay rise this January, with a further 43 per cent under the assumption that they are still on track for a bonus.   

And nearly three in four (72 per cent) of managers would like to give their employees a pay rise this January for their hard work, found a survey. 

However, 37 per cent of managers have been told by business leaders that they do not have the budget to do so.

"Managers are caught in a tough spot – they recognize and want to reward their teams' hard work, but tight budgets are tying their hands,” says Martin Fox, managing director of Robert Walters Canada, which did the poll.  

“This highlights the growing need for businesses to get creative in retaining top talent this year – from flexibility and wellbeing benefits to more purpose-driven work and formalized career paths." 

Many workers are not satisfied with the pay they are currently receiving from their employers – and many say they’re ready to walk out the door if their employers don’t boost their pay, according to a previous Robert Half report. 

Mid-year salary increase, bonus 

While some people will not be getting a raise this month, 40 per cent of managers have not ruled out spot bonuses or mid-year pay rises in 2025 – with a quarter stating that positive changes to employees’ compensation packages are likely if the business has a “strong” performance in the first quarter of 2025. 

However, nearly a quarter of managers say that even with a strong Q1, money would be spent elsewhere. 

This is true even as 72 per cent of professionals state that they are looking for a new job in 2025. 

“In addition to increasing non-financial-related benefits (where possible), businesses should also revise their timelines on pay reviews so that they don’t leave their employees hanging in the lurch,” says Fox.  

“Where new year and mid-year pay reviews are the norm, businesses should consider quarterly pay or bonus reviews – particularly if they were unable to give the anticipated end-of-year bonus or pay increase.”  

Previously, TELUS Health forecast a 3.45 per cent increase in average base salaries for non-unionized workers in Canada for 2025. 

How do you ensure financial transparency? 

This year, employees are also looking for their employer to provide greater transparency (64 per cent), found the Robert Walters survey. 

Many Canadian job postings on Indeed have already featured pay information. 

Here’s how to ensure financial transparency at your company, according to expense tracking software Fyle’s Rahul Radhakrishnan: 

• Define your transparency goals and boundaries. 

• Implement regular financial reporting schedules. 

• Emphasize ethical behaviour in financial decision-making. 

• Adopt transparent accounting tools for real-time data access. 

• Provide training on financial literacy to enhance understanding. 

• Foster clear and consistent communication with stakeholders. 

• Encourage open dialogue about financial matters. 

• Conduct independent audits to verify financial statements.