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Employee expectations and employer intentions seem to diverge this year, especially when it comes to replacement.
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In a survey conducted last October by global recruitment agency Robert Walters Inc. three-quarters of managers (72 percent) said they wanted to give their hard-working employees a raise this year. In a more recent survey, when asked how confident they were about granting pay raises in January, 37 percent said they had been told they didn’t have the budget to do so.
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Meanwhile, the report, released as part of Robert Walters’ Salary Guide to 2025, said more than half (56 percent) of professionals surveyed expected a pay rise this year, and a further 43 percent believe they still are on track for a bonus.
Some of those employees may be disappointed, as 39 percent of executives surveyed said bonuses were “unlikely” this year. And of those who plan to give bonuses, two-thirds say it will be “much less” than they had promised at the start of last year.
“Leaders are caught in a tough spot,” says Robert Walters Canada managing director Martin Fox, adding that while they recognize and want to reward their teams’ hard work, managers find their hands tied by budget constraints.
On the bright side, 40 percent of executives have not ruled out spot bonuses or semi-annual pay increases in 2025, the survey said. A quarter of these said positive changes to employee compensation packages are likely if business performance is “strong” in the first quarter.
Another survey on employee pay raises said two out of five workers had never asked for one salary increasewhile 43 percent received no raise or bonus last year.
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That survey, released by FlexJobs, also said 26 percent of workers request a raise once a year.
Fox said employees will demand even greater clarity and transparency about pay in 2025, especially after what was a difficult year for many companies.
The Robert Walters survey said 64 percent of employees believe their employers could be more transparent about business and financial updates, and 19 percent would like to see faster communication on important issues.
“Employees are very aware of the economic climate … and will want to know where they stand,” says Fox. “Being honest and involving employees in their career journey will be a key retention tactic.”
When nearly 25 percent of executives surveyed said that even with a strong first quarter, money was unlikely to be spent on pay raises, companies may have an exodus on their hands. According to the report, 72 percent of professionals are looking for a new job in 2025.
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Fox said companies should revise their pay review timelines so they don’t leave their employees in the lurch.
New year and mid-year pay reviews are the norm, but companies should consider quarterly reviews – especially if they were unable to meet their employees’ expectations for year-end bonuses or salary increases.
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