how to budget employee compensation with the 2025 salary guide?

As global economies rapidly evolve, labor markets are revealing new trends that can revolutionize your talent strategy. While you embrace the AI and digital future, your compensation strategy goes beyond just creating a digitized workplace ecosystem.

An employee compensation plan focused on employee well-being is essential, even if it’s challenging. Crafting a pay structure that appeals to all employees is key to talent retention.

With the 2024 budget season on the horizon, now is the perfect moment to reassess and enhance your employee compensation strategy. This September will be bustling as you refine business goals, develop budgets, and set sales forecasts to propel your vision forward.

Additionally, your employee compensation plan should systematically be part of this annual evaluation process. This will allow you to determine whether adjustments are necessary to remain competitive and attract new talent in the coming year.

how to build a focused employee compensation plan?

While designing your employee compensation plan, it's common to face various workplace challenges. Take a moment to build a focused plan that aligns with your current business needs and workplace dynamics.

Here are key factors to consider:

• Assessing hiring costs and compensation expectations for your existing and potential employees.
• Identifying skill gaps and working towards implementing an in-house training ecosystem.
• Reviewing industry benchmarks and incorporating them into your compensation strategy.

Need guidance on starting your employee compensation planning? Our 2025 salary guide is the answer.

build a robust forecast framework

Talent forecasting is evolving rapidly as inflation and rising housing costs influence your data significantly. Our 2025 salary guide predicts higher inflation and housing costs in Canada for 2025. Approach your planning from a broad perspective and then focus on the specifics.

As inflation grows, employees will expect better salaries to cover increased living costs. Plus, with Baby Boomers approaching retirement and Generation Z entering the workforce, your employee compensation framework adapt to meet the strikingly new expectations of younger generations.

Aligning your approach with industry-specific trends adds precision to your talent forecast. Adjust your forecast to address competitive talent markets and roles to ensure comprehensiveness. Keep these factors in mind when preparing your talent budget for 2025.

Before determining your employee compensation framework, address these key factors to develop your talent budget:

• What existing positions will continue into the new year, and how many people will occupy each role?
• To meet your business goals, how many new hires are necessary for each current position, and when should they start?
• Are there new roles required to meet your business objectives?

Tap into our 2025 salary guide data to build your 2025 talent forecast and an employee compensation plan that aligns with your growth strategy and caters to your workforce's diverse needs.

how salary benchmarking enhances employee retention

Leveraging salary benchmarking to refine your compensation strategy can lead to higher retention rates and a stronger employer brand. This approach underscores the principle of ‘performance through people’ and is crucial in a crowded talent market where a compelling compensation plan is vital to attract top talent.

strategize your employee compensation plan

Now, it’s time for the numbers. Determine the additional headcount required and their cost. Justify this expense by illustrating how new employees will result in future savings and increased revenues. Adjust workforce budgets to tap into new opportunities.

With all your calculations and strategies in place, prepare a detailed compensation plan that includes pay raises, new hires, and hiring-related expenses. Equipped with this comprehensive plan, you’re ready to secure leadership buy-in or lead your organization confidently into 2o25.

Unlock detailed insights into the current talent market and sector-specific compensation trends by connecting with our expert consultants. Enhance your talent strategy with their expertise.