Royal Bank of Canada (RY) is spending more than $200 million to boost employee pay,
bonuses, and benefits amid a tight labour market.
Canada’s largest bank is raising base salaries in the four lowest levels of its pay scale, accounting for almost half its workforce, by 3% starting on July 1, which is Canada Day.
Royal Bank, which has almost 90,000 employees globally, is trying to retain talent as Canada’s
labour market remains tight, with the national unemployment rate dropping to a record low in
April.
The financial institution has said that the demand for top talent, especially workers with math
and coding skills, is currently at an all-time high.
In addition to the pay raises, Royal Bank will consider the “unique market forces” when setting
base salary pools at the end of this year.
The bank is also raising contributions to its defined contribution pension plan (RRSP) over two
years, starting in January 2023. The lender is enhancing its benefits for fertility, surrogacy and
adoption services starting in July. And, Royal Bank said it is starting a paid sabbatical program
for employees globally.
Shares of Royal Bank, Canada’s largest lender by market value, fell 1.44% to $127.73 per
share yesterday (May 9). The stock is down 7% year to date.
