Results of the 2024 Canada New Graduate Pay and Generation Z Compensation Survey

Hiring new talent is exciting, but if you are still using many traditional hiring practices and compensation strategies, you may be left wondering why you can’t attract many young workers. Rapidly changing technology impacts us all, but for no one more than our youngest employees. The changes in technology, including the access to information, provide our youngest employee prospects with a constantly shifting idea of what is a “great employer.” Your job is to keep up!

Hiring managers and recruiters trying to figure this out on their own may be left scrambling. With access to real-world data and current strategies, you can get ahead of the competition and understand what you need to do to hire the fresh talent you need. The 2024 Canada New Graduate and Generation Z Compensation Survey offers data from 170 organizations nationwide, including data from 12 types of degrees and 15 disciplines.

Keep reading to get a snapshot of the insights this survey can offer your business.

What perks does Gen Z want in the workplace?

Workplace perks have long been a valuable resource for attracting and retaining talent. However, as generations come and go, the perks your employees want will change. With Gen Z, it’s more than just good pay. Indeed, it seems that their preferences have changed a bit from last year, so it’s important to keep a pulse on it!

In the 2024 survey, released in October of 2024, we found the following in terms of what new grads and Gen Z workers find most valuable.

• Culture: Within this category, compensation and competitive pay remains the top priority, followed by career development programs and challenging and rewarding work. 
• Comfort: SPaid fitness/gym memberships top the list, followed by standing workstations and free food.
• Personal: Flexibility is the most valued within this category in terms of both where they work and flexible schedules. They’d like to be comfortable while working too, valuing a relaxed dress code more than tuition reimbursement or parental leave.  
• Social: Flexibility is the most valued within this category in terms of both where they work and flexible schedules. They’d like to be comfortable while working too, valuing a relaxed dress code more than tuition reimbursement or parental leave.  
•  Amenity: On-site fitness facilities are valued the most when it comes to amenities, followed by travel discounts, paid/subsidized parking, technology discounts, and local business discounts.

Based on the needs of their workers, many organizations are considering adding more workplace perks that would be appealing to Gen Z, including additional vacation days, more remote work opportunities, student loan repayment assistance, and birthday rewards.

Addressing flexibility

In this new world of work post COVID-19, flexibility in terms of workplace or time has become a given. The most common arrangement is for employers to require this year’s new graduate hires to work on-site part time and flexibly from home the rest of the time. Only 10.6% say they will allow full-time work from home. 

Are employers being transparent with Gen Z?

When we asked employers if they are providing pay transparency to new graduate hires, most responded that were not (64.6%). It’s interesting to compare that with the latest Compensation Planning Survey published in November 2024, which says that 58% of Canadian employers comply with local laws and have no plan to broaden transparency beyond what is required. Another 23%, however, are exploring sharing pay ranges internally and externally in a more standardized approach, beyond what is legally required. Still another 15% said that they already share ranges internally and externally. 

Average new graduate pay in Canada

New graduate pay in Canada seems to have dropped. The average starting salary in 2023 for those with a community college diploma was $61,357, while the average is $52,755 in 2024. The trend continues for those with a Bachelor of Science degree, dropping from $67,899 in 2023 to $64,121 in 2024. The highest paid new graduate hires are those with a Bachelor of Engineering degree, for whom the average starting salary was $75,919.

Bonuses are still being offered

Annual bonuses are still a popular source of additional compensation for new hires. In our survey, 72.8% of businesses make new graduate hires eligible for their annual bonus program. Regarding payout, 78.7% of those businesses pay a bonus to more than 75% of new hires. Given that bonuses tend to be based on performance, it seems that new graduate hires are treated similarly to other employees.

While the job market has evened out in the last year, there are still highly competitive positions and in-demand jobs. In those areas, some businesses are using sign-on bonuses to attract the talent they need (19.5%). Of those that offered sign-on bonuses, 76.9% said they offered the bonus to compete with other offers and 38.5% offered sign-on bonuses to pay for an in-demand skill. 

Recruiting new graduates

Many businesses actively recruit interns, co-op students, and new graduates by visiting university campuses. In the 2024 Mercer survey, 87.4% of respondents said they would send recruiters to campuses this year. The most popular months for campus recruitment of new graduates are March and September. 

What about interns and co-ops?

Of the organizations in the survey, almost 80% hire summer interns and 57% hire Cooperative Education Program students. Greater Toronto, Calgary, and Edmonton lead the way in hiring both co-op and summer interns. Along with new graduates, many businesses also hire interns and co-op students to enhance their workforce. This is beneficial for both the business and the students. The students gain valuable on-the-job experience, while companies are able to teach relevant processes to a new generation.       

Set competitive Gen Z pay in Canada with data from Mercer

If there is one thing that always stays the same, it’s that what worked for previous generations will not work for newer ones. If your business still uses the same old hiring strategies, you will likely miss out on attracting and retaining the new talent your business needs to thrive.

Attracting new talent starts with competitive new hire pay. Using Mercer’s latest Canada New Graduate and Generation Z Compensation Survey data will ensure your salary offers are competitive.

To learn more about this survey and other products from Mercer, give us a call today at 855-286-5302. You can also email us at surveys@mercer.com.