Hire top talent in Canada with salary benchmarking

Markets across Canada are thriving, including natural resources, services and finance, AI and technology, and manufacturing. With such a wealth of opportunity, it is no surprise that Canada attracts plenty of foreign interest. Foreign multinational enterprises in Canada provide roughly 2.74 million jobs. Meanwhile, tens of thousands of foreign companies from over 90 locations operate in the country.

Canada is attractive to global businesses for reasons such as its location - which provides direct access to the U.S. market - as well as the fact that both English and French are spoken and its workforce is highly educated. In fact, Canada leads the G7 in adult education, with approximately 95% of the population holding a high school diploma.

While Canada is evidently a land of opportunity for businesses across the spectrum of industry, this fact means that prospective employers must be ready to offer competitive packages to secure top talent.

This is where salary benchmarking comes in.

What is salary benchmarking?

Salary benchmarking, also known as compensation benchmarking or pay benchmarking, is a service whereby a team of experts benchmarks salaries and benefits packages against local averages, on behalf of a client, in the location where the client wishes to hire staff.

The experts then compile a report, featuring details and analysis of salary information, the economic situation, wage brackets, mandatory and preferred benefits, as well as the relevant legal and ethical considerations.

Why salary benchmarking is essential when hiring in Canada

Canada’s global appeal exacerbates competition levels when it comes to hiring. Industries such as technology, financial services, healthcare, engineering, and advanced manufacturing often face talent shortages. This places increased pressure on employers to offer compensation that aligns with market expectations and makes them stand out in a crowded market.

Salary benchmarking tools provide organisations with accurate, up-to-date insights into what candidates in particular roles, industries, and/or locations expect to be offered.

For example, recent research shows that found that Canadian organisations are planning average base salary increases of 3.3 per cent in 2026.

Local information like this helps employers develop compensation packages that are both competitive and sustainable. By understanding local market rates, businesses can avoid offering salaries that are too low to attract qualified candidates or unnecessarily high salaries that increase labour costs without delivering additional value.

Beyond recruitment, salary benchmarking can contribute to improved employee retention. Employees who feel they are compensated fairly are generally more likely to remain with their employer, reducing turnover and the associated costs of recruitment and training.

Trust is something employees increasingly value in an employer, and benchmarking supports pay transparency and internal equity, helping organisations establish fair and consistent compensation practices across their workforce. For example, 70% of Canadian employees say their employer does a good job fostering trust in the workplace – something they hold in great esteem.

Factors affecting salaries across Canada

There is no one-size-fits-all approach to compensation in Canada. Salary expectations can vary considerably depending on a range of factors, making local market intelligence essential when hiring.

Location is one of the most significant influences on compensation in Canada. Employees in major cities such as Toronto, Vancouver, and Calgary often command higher salaries than those in smaller cities and towns. This reflects regional labour market conditions and differences in living costs. Quebec presents additional considerations, including its predominantly French-speaking workforce and unique business environment which differs from the rest of Canada.

Industry demand also plays a major role in determining salaries for workers in Canada. Professionals working in high-growth sectors such as tech, AI, clean energy, and finance are generally paid considerably higher salaries due to increased competition for their specialist skills. Meanwhile, compensation amounts may differ in more traditional sectors where talent pools are larger.

For individual candidates, attributes like education, technical expertise, professional certifications, and amount of experience can further impact salary expectations.

What should be included in a competitive Canadian compensation package?

While salary remains a key consideration for jobseekers, in order to remain competitive, employers should take a broader approach when designing compensation packages – considering benefits and perks as well as financial reward.

A competitive Canadian compensation package typically includes a combination of salary, benefits, and workplace perks. This means going beyond statutory benefits such as Canada’s mandatory employer contributions to the Canada Pension Plan (CPP/QPP), Employment Insurance (EI), and provincial workers' compensation boards.

To attract top talent in Canada, a salary benchmarking report may recommend that an employer offer supplementary health and dental coverage, life insurance, disability insurance, or retirement savings plans.

Work-life balance is also highly valued among Canadian employees. Workers will look for flexible working arrangements, along with generous paid leave policies, parental leave accommodations, and wellbeing programmes.

How Mauve Group's salary benchmarking services support global hiring in Canada

For organisations expanding into Canada or building remote teams in the country, understanding local compensation expectations can be challenging. Salary benchmarking services help employers navigate this complexity by providing reliable market data and expert analysis tailored to their specific hiring needs.

Mauve Group's Salary Benchmarking service offers detailed insights into local salary ranges, economic conditions, industry trends, and candidate expectations. Reports can include information on wage structures, mandatory employment provisions, customary benefits, and other factors that influence compensation decisions in the Canadian market.

This intelligence enables employers to develop competitive and compliant compensation packages that support successful recruitment outcomes. Whether hiring a single employee or building an entire team, organisations can use salary benchmarking data to attract high-quality candidates while maintaining effective cost management.

As Canada's economy continues to grow and evolve, competition for skilled professionals is likely to remain strong. By investing in salary benchmarking, employers can position themselves as attractive employers, make informed hiring decisions, and secure the talent they need to achieve their business goals.

Contact Mauve today to find out more about our salary benchmarking services in Canada.