Three quarters of managers (72%) would like to give their employees a pay rise this January for their hard work – but 37% have been told by business leaders that they do not have the budget to do so.
A further 39% of managers stated that bonuses are ‘unlikely’ this year. Of those companies who will be giving bonuses, two thirds have stated it will be ‘much less’ than what they had promised at the start of 2024.
The findings are from Robert Walters' recently launched Salary Survey 2025 guide, which outlines what professionals can expect from their compensation packages in the new year.
Martin Fox – Managing Director of Robert Walters Canada comments:
"Managers are caught in a tough spot – they recognize and want to reward their teams' hard work, but tight budgets are tying their hands. 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."
Transparency top of the agenda
Over half of professionals (56%) are expecting a pay rise this January, with a further 43% also under the assumption that they are still on track for a bonus.
When asked what their employer could do better in 2025, when it comes to business and financial updates, more transparency (64%) was top of the agenda, followed by speedier communications on important matters (19%), and involving employees in decision-making (13%).
Martin adds: “Following what was a year of difficult business decisions, employees will be demanding even greater clarity and transparency. Employees are very aware of the economic climate, and with a slew of negative stories in the media around mass redundancies or job cuts – employees will want to know where they stand. Being honest and involving employees in their career journey will be a vital retention tactic.”
Hope in 2025
40% 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 is likely if Q1 is ‘strong’ on the business performance front.
However, with 74% of professional stating that they are looking for a new job in 2025, businesses may have an exodus on their hands if pay rises come too late. Especially when we consider that nearly a quarter of managers say that even with a strong Q1, money would be spent elsewhere.
Martin Fox adds: “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. 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.”
The Robert Walters Salary Survey 2025 is now available to access.
ENDS
Contact Georgia Peglar
georgia.peglar@robertwalters.com
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