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Written by Kieran Delamont, Associate Editor, London Inc. | |
BENEFITS
The smoke and mirrors of unlimited paid time off
Unlimited PTO is a failed HR benefit. Heck, even jobseekers are saying no
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ALMOST AS SOON as it started popping up in job listings and employment offers in recent years, it was apparent to many that the trend of unlimited paid time off (PTO) might come with a catch. And for a lot of workers, it did: unlimited PTO meant that every PTO request would be scrutinized and negotiated, and ultimately resulted in less time being taken off.
Now, new data from the job market suggests that the days of seeing unlimited PTO offered as a perk are waning.
At its peak, more than three job postings out of every 1,000 in 2022 mentioned unlimited PTO, but that rate has fallen by more than half. In July of this year, only 1.5 out of 1,000 jobs offered unlimited time off, according to data from Revelio Labs.
Revelio’s conclusion is that unlimited PTO is being treated as a red flag by jobseekers, not an incentive. “The unlimited PTO policy has been viewed somewhat negatively over time,” said Revelio’s senior economist Jin Yan. “When it’s not implemented well, it can create a lot of anxiety among employees in terms of how much time is appropriate.”
“Companies with unlimited PTO also tend to have lower ratings compared to their competitors, particularly in areas such as work-life balance,” the survey concluded. “When the policy is perceived as a cost-cutting measure rather than a genuine benefit, it can further diminish trust and satisfaction among employees.”
That helps explain Revelio’s other conclusion from the data: that jobs advertising unlimited PTO have become statistically harder to fill. “Job postings mentioning unlimited PTO take longer to fill on average,” said the report. A job offering unlimited PTO took an average of 41.4 days to fill this year, while the average for all jobs was 33.9.
“When implemented effectively, unlimited PTO can greatly enhance work-life balance and overall job satisfaction,” Revelio stated. “[But] while unlimited PTO offers flexibility, its effectiveness depends largely on how it is implemented. Employees may feel uncertain about how much time off is acceptable, leading to anxiety and underutilization of the benefit.”
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REMUNERATION
Expecting a big raise in 2025? Don’t bet on it
Canadian employers are expecting to lower overall salary increase budgets in the coming year
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THOSE HOPING FOR a big, inflation-beating raise next year might be in for some disappointment, as this year’s annual Normandin Beaudry salary increase survey finds that employers in 2025 are trimming salary increase budgets.
The average raise projection for next year is 3.4 per cent, the survey found, down only slightly from this year’s 3.6 per cent.
“Canadian organizations are taking a more conservative approach to salary increases for their workforce,” the survey found. “As the labour market continues to balance out and inflationary pressures ease, salary increase budgets are continuing to trend towards pre-pandemic market norms.”
The numbers vary, albeit only slightly, when you look at specific sectors. High-tech sectors are likely looking at average increases of around 4.3 per cent, while non-profits and healthcare sectors are looking at something closer to 3.5 per cent. And in general, salary increase budgets look marginally better in the private sector (3.5 per cent forecasted) versus the public sector (3.3 per cent forecasted).
Provincially, workers in B.C., Ontario and Quebec are likely going to come out a bit better than other provinces.
Interestingly, though, the survey also noted that companies are still carving out contingency funds. Around 44 per cent of all companies plan on granting an additional budget increase of one per cent next year to “apply market-driven adjustments, retain employees in critical roles and differentiate compensation for top performers.”
All in all, it points to a return to somewhat normal pay hikes after multiple years of seesawing in the labour market. In other words, don’t count on those big increases that many saw in 2021 and 2022; the game has changed again, at least according to this survey.
“While average salary increase projections remain above three per cent, organizations are considering affordability when defining their long-term plans,” said Norman Beaudry senior principal Darcy Clark. “Several significant salary increase cycles may not be sustainable and organizations remain cautious about increasing recurring payroll costs as they plan for the future.”
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Terry Talks: The Pay It Forward 9/11 challenge
| Inspired by the kindness shown to Americans on September 11, 2001, the Pay It Forward 9/11 organization challenges individuals, businesses, schools and beyond to commit to acts of kindness and service throughout the first eleven days of September. | | | |
ECONOMY
A productivity conundrum
Amid cries to fix our productivity, two-thirds of Canadian managers say their teams are more productive. What gives?
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WE’RE IN A productivity crisis ― or so they say. While there has been a lot of concern lately over official productivity numbers, a survey taken over the summer reports that two-thirds of Canadian managers have seen increased productivity within their teams compared to a year ago, as investments in talent and improved management starts to bear fruit.
“Nearly seven in 10 hiring managers report an increase in employee productivity compared to one year ago,” reads the survey from Robert Half Canada. Thirty-one per cent attribute that increase to things like full-time hires, improved management practices and improved training, while 29 per cent say that investments in new technology are helping boost productivity.
“Increased productivity is very positive news for managers, businesses and professionals alike,” said Robert Half’s senior managing director Koula Vasilopoulos. “Businesses who maintain necessary staffing levels, adopt new technologies and invest in learning and development training for their staff see the benefits in increased engagement and productivity.”
How to square this, then, with the constant reports of a productivity crisis?
On the one hand, data on the level of individual teams would naturally look different than the economy as a whole. On the other, you might interpret it as evidence that business is doing what economists have been begging them to do vis-a-vis productivity ― that is, invest more ― and we are starting to see productivity gains.
One area that seems to be working is meeting workers where they are at: more than half of workers said that they were able to be more productive in part because they had access to hybrid work options. “With economic times being the way they are, companies are lean and in some cases, understaffed,” noted Robert Half’s Sandra Lavoy. “But when you treat your employees well, allowing flexibility is really good for added productivity.”
Is there a catch? Naturally, yes. At least some of those gains are down to the increased hours being worked. Nearly three in ten workers, the survey found, are working longer hours than they were a year ago.
So, while Robert Half sees encouraging signs, “this needs to be balanced with a positive work environment, including reasonable hours and flexibility,” said Vasilopoulos. “Working longer hours and not establishing work-life balance can quickly offset productivity gains through burnout and turnover.”
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MARKETING
AI has a serious branding problem
Trying to convince customers to buy your AI-stamped products or services? You might want to rethink that
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ANXIOUS ABOUT THE encroachment of AI into your work and professional life? You’re not alone. But are you also worried about AI’s encroachment into, well, everything else? Looks like you’re not alone there, either.
As businesses and brands rush to inject AI tech into just about anything they can, a study released this summer in the Journal of Hospitality Marketing and Management suggests that it’s turning consumers away.
“While the presence of the term ‘artificial intelligence’ in a product description may be viewed as a sign of that product having advanced capabilities and features, it may also trigger fear and concern among consumers,” the study found.
One of the study’s authors, Dogan Gursoy, told CNN that when they asked subjects to pick between two products, “in every single case, the intention to buy or use the product or service was significantly lower whenever we mentioned AI in the product description.”
One conclusion to be drawn here is that whether it’s in your coffee maker, your streaming service or in your job, AI and the companies promoting its use have a bit of a wee bit of a trust issue.
“Only 30 per cent of respondents [say] they trust generative AI,” reports Fortune, “with most consumers saying their trust in AI has already been eroded by organizations using the technology.”
The study’s authors suggest that if the investment being made in AI is to pay off, it needs to adopt better and more transparent messaging, both in consumer and professional contexts. “The most advisable thing for [companies] to do is come up with the right messaging,” Gursoy said. “Rather than simply putting ‘AI-powered’ or ‘run by AI,’ telling people how this can help them will ease the consumer’s fears.”
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