Four drivers of frontline employee satisfaction and business results: Canada spotlight

Canada’s 7.5 million frontline employees¹ play a vital role in the workforce but face challenges around pay, career growth, and flexibility. While recent increases to the minimum wage have helped,² many frontline employees still earn below a living wage,³ and perceptions of fair compensation remain mixed — only 57% of Canadian frontline employees and 51% of managers feel they are paid fairly.⁴ With around half (51%) of employees expressing dissatisfaction with their wages,⁵ ensuring competitive pay remains a priority.

Beyond compensation, career growth and recognition are top concerns. While 65% of frontline employees aspire to advance within their organizations,⁶ only two-thirds feel somewhat or completely satisfied with their learning and development opportunities.⁷ A sense of being undervalued adds to this challenge — more than a third of frontline employees and 45% of managers report receiving little to no recognition at work.⁸ Women, who make up 2.6 million of Canada’s frontline workforce,⁹ are particularly affected as they are overrepresented among those receiving lower pay.¹⁰ The need for equitable development pathways is especially urgent for employees from marginalized racial and ethnic groups, with Black and Indigenous employees more likely to experience career stagnation.¹¹ Addressing these disparities can help create a more inclusive and supportive environment where all frontline employees have a fair chance to grow.

Flexibility has also emerged as a major factor in job satisfaction and retention.¹² Around four in five frontline managers and employees would consider leaving for a job with a better schedule.¹³ That equates to approximately 6.45 million frontline employees at risk of not showing up to work tomorrow if more predictable and adaptable work arrangements are not provided. The cost of inaction is drastic: an estimated $481.54 billion CAD in potential turnover expenses.¹⁴

How to cite: Smith, E. & Van Bommel, T. (2025). Four drivers of frontline employee satisfaction and business results: Canada spotlight. Catalyst.