CANADASALARY&HIRING TRENDSGUIDE2025: The great stagnation hays.ca CONTENTS INTRODUCTION Balancing profit and progressThe missing middle recruitment challengeSo what? The era of the Great Resignation has now evolved into what manyare calling the Great Stagnation. Employees’ goals and aspirations have largely gone unmet.Despitetheir hopes, wages have not increased to the levels they desire,and career progression has stalled. Opportunities for advancementseem scarce, and employers are not investing sufficiently in theirdevelopment. While the wave of mass layoffs has receded, therehasn’t been a corresponding surge in hiring. Company headcountsremain stagnant, and earnings are substantial but not translating intogrowth. This is the reality of the Great Stagnation. Employees feel like they are stagnatingThe need for development and growth opportunitiesAligning skills: Bridging employeeand organizational needsFrom stagnation to innovation: Revitalizing theworkforce For employers, this situation is somewhat better than the turmoilof the Great Resignation, and it appears we have sidestepped arecession.However, to truly move forward, significant changes arenecessary. We must prioritize investment in our workforce, within ourcompanies, and across our nation.Canada is grappling with a severeproductivity issue, and to advance, we need to cultivate the skills ofthe future and retain our talented workers. Transparency in the workplace: Addressingfairness and equity Successfully addressing the skills shortage will make it considerablyeasier to attract the capital investment needed for companies toexpand.It will also position Canada as an appealing destination forinternational businesses looking to grow. Let’s talk about compensation in 2024And how about pay in 2025Advocating for pay transparency: Ensuringfairness and trust in the workplace Embracing pay transparency is crucial—not just because oflegislative requirements or ethical considerations, but because aworkforce that trusts its employer is more engaged and satisfied.Transparent pay practices can foster a culture of trust and loyalty,which are essential for long-term success. The past 18 months have been incredibly challenging, but wehave the opportunity to shape a better future.By making strategicinvestments in our people and embracing transparency,we canovercome the current stagnation and pave the way for a moredynamic and prosperous era. The path forward is ours to carve, andwith dedication and effort, we can achieve our goals and build abrighter future for our organization and our workforce. Methodology Travis O'RourkePresident Hays Canada The Canada 2025 Salary Guide & Hiring Trends, based on asurvey of 6,588 participants conducted in September 2024,provides key insights into the labour market. It highlights factorsaffecting employee satisfaction and motivation, and the evolvingworkplace paradigms. The guide also notes the increasing difficultyorganizations face in attracting new talent, the critical need forreskilling due to stagnation, and the importance of pay transparencyin building trust and fairness within the workforce. BREAKING THE CYCLE:EXPLORE THE TOPTRENDS OF THE 2025LABOUR MARKET PROFIT#1 Focus for companies RETENTION#1 Focus for HR THE MISSINGMIDDLERECRUITMENTCHALLENGE PAYTRANSPARENCY37% of employees feelthat pay is not fair andequal in their organization SKILLSSHORTAGES 85% of the organizationsare encounteringincreasing difficulty inattracting new talent BOOSTING PROFITS: OVERCOMING SKILLS SHORTAGESFOR BUSINESS GROWTH The 2025 job market is expected to face significantrecruitmentchallenges.Despite a record number of workers expressing adesire to change jobs in 2024, 85% of organizations still struggledwith skills shortages. This issue is likely to worsen in 2025.Economic uncertainty and a year of layoffs have reduced thepercentage of employees willing to leave their current positions to55%.Although this figure remains substantial, many employeesare hesitant to move due to economic concerns, preventing thosewho wanted to switch jobs from doing so. The three main causes of skill shortages fororganizations are: The job market is overshadowed by economicconcerns and job security fears, with just28% of job seekers confident in theemployment opportunities. Pay levels Balancing profit and progress FACTORS LIMITING STRATEGICGOAL ACHIEVEMENT: This year,companies are prioritizing profitabove all else,with 51% of organizations ranking it as one of their top threegoals. This focus on financial gain has led to stringent budgetconstraints, creating a challenging environment where managersfeel limited resources are hindering their ability to meet targets. 1.Limited budgets2.Skills shortages3.Rising costs for businesses We asked organizations their top 3 strategic goals: 1.Increase operating profit 2.Gaining market share One potential solution is theincreased use oftemporary and contract workers. Many organizationso