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

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  Ellie Smith, PhD  &  Tara Van Bommel, PhD

18 min read

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Executive summary

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.

How satisfied are Canadian frontline employees?

We surveyed 2,034 frontline employees and managers in Canada15 across a range of industries16 and quantified their satisfaction with five aspects of job rewards and growth opportunities: base pay, pay increases, benefits, job growth and development opportunities, and advancement. Through our analysis, we found that respondents fell into two distinct profiles based on their level of satisfaction.17

  • The “very dissatisfied” group (31% of the sample) reports dissatisfaction with pay increases and neither satisfaction nor dissatisfaction with their base pay, benefits, job growth and development opportunities, and advancement.
  • The “moderately satisfied” group (69% of the sample) reports moderate satisfaction with base pay, pay increases, benefits, job growth and development opportunities, and advancement.

Creating a more rewarding and sustainable work environment for Canada’s frontline employees requires a focus on fair pay, career growth, recognition, and flexibility. Critically, our ability to classify employees into different satisfaction levels allows us to pinpoint the policies, processes, and conditions that drive positive workplace experiences. Any effort to advance gender equity in frontline workplaces will fall short unless organizations address these key levers.

Stronger job satisfaction drives business success

When frontline employees feel fairly compensated and see opportunities for growth, their commitment, engagement, and loyalty to their organization increase dramatically. Employees who are more satisfied with their job rewards and growth opportunities are:

  • 10.7x

    more likely to be committed to their workplace18
  • 5.5x

    more likely to be engaged in their work19
  • 2.9x

    more likely to say they’re willing to choose the same employer again20

These findings highlight that fair pay, career growth, recognition, and flexibility aren’t just employee perks — they are essential to retention and performance. Organizations that address these factors can expect to see a more motivated and committed frontline workforce. This is especially critical for women, who remain overrepresented in lower-paying roles21 and report fewer development opportunities such as skill-building assignments22 and training for higher-paying jobs.23 By taking meaningful steps to improve job rewards and development, companies can create a more equitable and sustainable work environment while driving stronger business results.

Four drivers of employee satisfaction

Our data highlight that frontline leaders should take four actions to increase satisfaction with job rewards and growth opportunities and ultimately enhance frontline employee engagement.

Driver 1: Competitive pay

For every $1CAD spent on wage increases, companies could save approximately $7.18CAD in turnover costs.

Key finding: Competitive pay is fundamental to job satisfaction, but it’s not just about offering more — it’s about structuring pay in a way that fosters a sense of fairness, recognition, and long-term financial security. Without this, frontline employees, particularly women, remain at greater risk of financial insecurity and lower engagement.

Digging deeper: The connection between pay and satisfaction is clear — employees with higher earnings report greater job satisfaction.24 However, the impact of broad, across-the-board pay adjustments is limited. Only a slightly higher percentage of moderately satisfied employees (19%) report receiving a company-wide pay raise compared to those who are very dissatisfied (17%),25 highlighting that general wage increases alone do little to shift perceptions of fairness or recognition.

Among moderately satisfied employees, 67% report receiving a merit-based raise of at least $1CAD per hour or $2,000CAD annually — compared to just 48% of those who are very dissatisfied.26 This suggests that targeted, performance-driven pay increases contribute more to employees feeling valued and recognized for their work27 than standard company-wide cost-of-living adjustments.

But for women, these disparities are even more pronounced as they are overrepresented in lower-paying roles28 and paid less than men for similar roles across the pay spectrum.29 This exacerbates existing pay gaps and reinforces financial insecurity. Our data highlight how almost three in five women employees are dissatisfied with their base pay versus one in three men employees.30 Addressing these inequities requires more than just raising base pay — it calls for structured, transparent reward systems that recognize and fairly compensate employees for their contributions.

The takeaway? While competitive base pay is essential, recognition through performance-based rewards is an important factor in job satisfaction. When employees see a clear connection between their efforts and their compensation, they feel more valued, engaged, and committed to staying.

Understanding the income levels at which employees feel financially stable is essential for organizations committed to supporting their workforce. For hourly frontline employees, financial stability begins to improve around $30CAD per hour.31 Those earning less may struggle to afford basic necessities, while higher wages reduce financial strain, enhance job satisfaction, and lower stress. This threshold represents a critical tipping point — and surpassing it improves employees’ sense of security. For salaried employees, the data do not show a significant relationship between annual salary and satisfaction,32 suggesting other factors may play a larger role.

Recognizing these financial benchmarks allows organizations to better support employee wellbeing. However, these figures should be seen as a starting point, not a goal — true financial security comes from compensation that exceeds minimum thresholds. Investing in fair and competitive pay practices not only benefits employees but also strengthens retention, engagement, and long-term organizational success.

What pay increase balances financial stability for employees and business benefits for companies?

  • Raising wages by $5CAD per hour (equivalent to $10,400CAD annually per employee) helps frontline employees achieve greater financial security while delivering a strong return on investment. For every $1CAD spent on wage increases, companies could save approximately $7.18CAD in turnover costs.33

Equally important is providing a clear roadmap to higher earnings, supported by benefits and career development opportunities. While employees don’t necessarily expect immediate, significant pay raises, knowing there’s a structured path to growth enhances engagement, commitment, and long-term retention.

Driver 2: Job growth and development opportunities

Employees are 11 times more likely to feel satisfied when they have access to development opportunities.

Key finding: Complementing pay increases with job growth and development can further enhance employee satisfaction, loyalty, and retention and yet one out of three frontline employees are not satisfied with their learning and development opportunities.34 The data reveal that frequent access to formal training relevant to higher-paying roles, promotion opportunities, educational resources, skill-building assignments, and job shadowing predict higher employee satisfaction levels.35

Digging deeper: While 65% of frontline employees aspire to advance within their organizations,36 only two thirds feel satisfied with their learning and development opportunities.37 This gap highlights a significant area for improvement: providing employees with access to skill-development and growth opportunities. These resources not only contribute to role advancement but also play a critical role in shaping overall job satisfaction38 and perceptions of reward.

Access to growth and development opportunities strongly influences how employees perceive their level of satisfaction.39 The data show that moderately satisfied employees tend to have frequent access to a broad portfolio of development options — ranging from job-shadowing40 and mentorship41 to promotion,42 educational resources,43 and skill-building assignments.44 In contrast, very dissatisfied employees report significantly lower access across the board, with the most striking gaps in areas like mentorship programs (72% vs. 29%) and training for higher-paying jobs (77% vs. 25%).45

This suggests that it’s not just any single development opportunity that drives satisfaction — it’s the presence of a suite of options that collectively meet diverse employee needs. For instance, while 84–85% of satisfied employees report frequent access to both promotion opportunities and opportunities to move from part-time to full-time,46 only 37% and 52% of dissatisfied employees report the same, respectively. These differences highlight the importance of equitable and consistent access to multiple types of growth opportunities, rather than a piecemeal approach.

Driver 3: Clear, fair, and individual-centered promotion processes

Clarifying promotion processes could improve employee satisfaction almost eightfold.

Key finding: Organizations that establish clear, consistent, and personalized promotion processes significantly enhance frontline employee satisfaction. By clearly communicating promotion criteria, timelines, and the necessary skills or training, and taking an individualized approach, companies create a fairer and more transparent pathway for employee growth.

Digging deeper: Promotion practices play a critical role in shaping how employees perceive their value within an organization and their potential for advancement. The data show a pronounced difference in how employees in the moderately satisfied group experience promotion processes compared to their very dissatisfied counterparts. For example, there is a 47 percentage-point difference between the moderately satisfied and the very dissatisfied group in terms of whether they say their promotion processes are clear and consistent.47 This significant gap illustrates how important transparency and clarity are in ensuring employees feel fairly treated and confident in their career progression.

There is also a 44 percentage-point difference between the moderately satisfied and the very dissatisfied group in terms of whether they feel that their promotion process is individualized.48 A personalized approach recognizes employees’ unique contributions and aligns development opportunities with their aspirations.

However, despite 64% of frontline employees expressing a desire for career growth, only 16% feel completely satisfied with how valued they are in their current roles.49 This disconnect emphasizes the need for organizations to invest in clear, fair, and individual-centered promotion processes to boost employee satisfaction, prevent disengagement, and create a more loyal workforce. Without such strategies, organizations risk limiting the potential of their employees, especially those in frontline positions where career advancement can often feel out of reach.

What makes promotion processes clear, fair, and tailored to individual needs?

  • Employees expect transparency in how promotions are decided within their organization. This means clear, consistent guidelines and open communication about the factors that influence promotion decisions. When the criteria for advancement are transparent, employees feel the process is equitable and within reach, which boosts trust and motivates engagement.
  • Beyond transparency, employees appreciate promotion processes that are personalized to recognize their unique career goals, skills, and aspirations. A promotion system that takes into account individual preferences and development needs not only increases job satisfaction but also empowers employees to actively shape their career paths, strengthening their sense of belonging and commitment to the company.

Driver 4: Supportive manager relationships

Managers who support employee growth and development can more than double employee satisfaction.

Key finding: Managers who foster fairness, offer development support, and provide flexibility for work-life balance are central to enhancing employee satisfaction. In particular, for frontline employees, the influence of managers is critical, as they are often the primary point of contact within the organization. When managers enable flexibility to support work-life balance and are seen as fair and supportive of growth, it results in higher engagement and a more satisfied workforce.

Digging deeper: There are significant differences in employee satisfaction between those who feel supported by their managers and those who do not.

When managers ensure fair access to opportunities,50 actively invest in the growth and development of team members,51 and provide the flexibility52 needed to balance work and personal life,53 the impact on employee satisfaction is significant. Employees who are moderately satisfied are more than four times as likely to feel that resources and opportunities are distributed fairly,54 and around nine times more likely to feel that their career development is supported by their managers.55

The flexibility to manage both work and life responsibilities plays a crucial role in shaping frontline satisfaction. Moderately satisfied employees report a 40 percentage-point advantage in how well their job demands align with personal needs, compared to those who are very dissatisfied. Moreover, they have significantly better access to flexible working policies. This is especially important as flexibility is a key factor in job satisfaction and retention, with 89% of managers and 86% of frontline workers indicating they would consider leaving for a job with a better schedule.56

Take action

The four drivers outlined above comprise 21 unique actions, policies, or practices. We quantified which are the most effective, finding that the following five tactics have the greatest impact on employee engagement, retention, and satisfaction,57 in turn driving the most significant results and strongest return on investment for organizations.58

Explore more regions

As Canada continues to navigate economic shifts and labor market challenges, organizations have a crucial opportunity to reassess how they support their 7.5 million frontline employees. Our findings highlight that fair pay, career growth, recognition, and flexibility are not just workplace perks but essential drivers of job satisfaction, retention, and business success. While recent wage increases have helped, many frontline employees — especially women and people from marginalized groups — still face pay disparities and limited advancement opportunities. With nearly nine in ten frontline employees and managers considering leaving for better work schedules, the cost of inaction is significant. Organizations that invest in structured career pathways, competitive pay, and flexible work arrangements will not only foster a more engaged and committed workforce but also build a stronger, more resilient business for the future.

Methodology

Recruitment and sample

Participants were full-time frontline employees (entry-level, first-level manager, or supervisors) recruited through a panel service company. After obtaining informed consent, participants completed a 20-minute online survey.

Procedure and analysis

  • Participants were asked about their experiences in their workplace. Specifically, we asked questions about positive job conditions and opportunities for job improvement that they may (or may not) have experienced, as well as about a range of company practices that impact employees’ financial situations.
  • Participants were also asked demographic questions such as their race, ethnicity, gender, sexual orientation, and caregiving status. Participants were also asked questions about their financial situation, like how much money they earn, the amount of any recent raises or promotions, and their ability to make ends meet.
  • We employed several statistical analyses to investigate the impact of fair pay, comprehensive benefits, skill development, and clear advancement opportunities on frontline employee satisfaction, engagement, commitment, and intent to leave. We conducted exploratory factor analysis, a two-step cluster analysis, ordinal regression, linear regression, and relative importance analysis.
  • All analyses were performed in IBM SPSS version 25 except for relative importance analysis, which was performed using Python version 3 in JupyterLab. All results presented in this report were significant at p < .01 unless otherwise noted.

Demographics

Note that participants could skip demographic questions, so totals may not equal 100% or total sample size.

Total # of respondentsAgeGenderIndustryRace or ethnicitySexual orientationFrontline role
2,034 

41 

Average age 

49%

Women 

30% 

Retail and wholesale 

60% 

White  

85% 

Heterosexual 

37% 

Non-managerial roles with no supervisory responsibilities 

 

 18-75 

Age range 

49% 

Men

18% 

Manufacturing 

19% 

Asian

 14% 

Asexual, bisexual, gay, lesbian, pansexual, or queer  

36% 

First line or frontline managerial roles 

 

 

  <2% 

Other gender

15% 

Finance and insurance  

8% 

Black and/or Afro-diasporic

 

 27% 

Non-managerial roles with supervisory responsibilities 

 

 

 

14% 

Construction 

5% 

Multiracial 

 

 

 

11% 

Hospitality 

2% 

Latine

 

 

 

8% 

Transportation and warehousing 

2% 

MENA  

 

 

 

 

 

3% 

Utilities  

2% 

Indigenous 

 

 

 

 

 

<2% 

Mining, quarrying, oil and gas extraction 

 

 

 

 

Satisfaction profiles by rank, gender, and industry

Rank (# total)Very dissatisfiedModerately satisfied
Non-managerial roles with no supervisory responsibilities (n = 749) 41% 59% 
Supervisor (non-managerial roles with supervisory responsibilities) (n = 555) 30% 70% 
First line, first level or frontline managerial roles (n = 730) 23% 77% 

 

Gender (# total)Very dissatisfiedModerately satisfied 
Man (n = 1,002) 29% 71% 
Woman (n = 995) 34% 66% 
Other gender (n = 35) 34% 66% 

 

Industry (# total)Very dissatisfiedModerately satisfied
Retail and wholesale (n = 613) 36% 64% 
Manufacturing (n = 365) 27% 73% 
Finance and insurance (n = 312) 25% 75% 
Construction (n = 276) 22.5% 77.5% 
Hospitality (n = 214) 41% 59% 
Transportation and warehousing (n = 166) 36% 64% 
Utilities (n = 54) 18.5% 81.5% 
Mining, quarrying, oil and gas extraction (n = 34) 38% 62% 

About the authors

Ellie Smith, PhD

Ellie Smith, PhD, is a developmental cognitive neuroscientist and thought leader specializing in the science of behavior change, translating data into powerful tools for impact at both individual and systemic levels. As an EMEA-based Research Director at Catalyst, she brings a global lens to her work, applying expertise in diversity, equity, and inclusion, research methods, and advanced statistics to explore how cultural and organizational contexts shape workplace experiences in the rapidly evolving world of work.

Tara Van Bommel, PhD

Tara Van Bommel, PhD, is a social psychologist with expertise in stereotyping and prejudice, nonconscious bias, and intergroup relations. At Catalyst, Tara leads the Research team and brings her background in advanced statistics to develop solutions that create meaningful systemic change in the workplace and more positive workplace experiences for women across intersections of identity.

Endnotes

  1. Catalyst Labor Economist review of 2021 Census tabulations, public use microdata file, and Canada NOC data collected and analyzed in June 2024.
  2. Campbell, F. (2024, October 1). Canada’s minimum wage explained. Forbes Advisor Canada.
  3. Rates. Living Wage Canada.
  4. Paglinawan, D. (2024, July 17). Are frontline workers paid fairly? Financial Post.
  5. Wilson, J. (2024a, November 4). Half of Canadian workers feel underpaid: survey. Canadian HR Reporter.
  6. Wilson, J. (2024b, July 9). Survey highlights need for greater management support of front-line workers in Canada. Canadian HR Reporter.
  7. 2022 frontline employee experience survey. (2022). YOOBIC.
  8. Paglinawan (2024).
  9. Catalyst Labor Economist review of 2021 Census tabulations & public use microdata file data collected and analyzed in June 2024.
  10. A chi-square test of independence was conducted to examine the relationship between men and women frontline employees and whether their hourly wage was below $20CAD or their annual salary was below $40,000CAD. The analysis revealed a significant association, χ² (3, n = 2,034) = 91.23, p < .001. Examination of standardized residuals revealed that 36% of women employees earned below this threshold (4.8) compared to 19% of men (-5.4) and 60% of another gender (3.6), with groups differing significantly from what was expected.
  11. Albury, C., Vongdara, B, Kanji, S., & Nicholas, M. (2023). Exploring career stagnation in employment equity groups amongst Canadian public servants. ISI 2023 Conference Proceedings.
  12. Dobson, D. (2023, January 24). Employee retention: Facing the front-line flexibility dilemma. Caat Pension Plan.
  13. Wilson (2024b); 89% of managers and 86% of employees reported that they would consider leaving for a job with a better schedule.
  14. Out of approximately 7.5 million frontline employees, 86% report considering leaving their roles for a job with a better schedule, which equals 6.45 million. Approximate turnover cost per frontline employee is $74,658CAD. As such, 6.45 million x $74,658CAD = $481.54 billion CAD as an estimate of the at-risk cost to organizations that do not ensure sufficient wages, benefits, and advancement and growth opportunities.
  15. We surveyed 2,034 frontline employees and managers in Canada in a variety of industries, including retail (n = 529, 26%), manufacturing (n = 365, 18%), finance and insurance (n = 312, 15%), construction (n = 276, 14%), hospitality (n = 214, 11%), transportation and warehousing (n = 166, 8%), wholesale (n = 84, 4%), utilities (n =54, 3%), and mining, quarrying, oil and gas extraction (n = 34, <2%). Our sample was equal parts cisgender women (n = 995, 49%) and men (n = 1,002, 49%), with some representation of other genders (n = 35, <2%). Around two-thirds of the respondents were White (n = 1,215, 60%) and our sample included representation from other racial and ethnic identities as well: Asian (n = 391, 19%), Black or Afro-Diasporic (n = 169, 8%), Latine (n = 41, 2%), Indigenous (n = 43, 2%), MENA (n = 51, 3%), and multiracial employees; (n = 91, 5%). Most respondents identified as heterosexual/straight (n = 1,673, 85%), and our sample represented other sexual identities as well (e.g., asexual, bisexual, gay, lesbian, pansexual, or queer employees (n = 280, 14%). The average participant age was 41 years old, and ages ranged from 18 to 75. Most respondents were Millennials (n = 872, 43%), 19% were Gen Z (n = 378), around a quarter were Gen X (n = 534, 26%), and the rest were Baby Boomers (n = 250, 12%). Approximately a third of the respondents were in non-managerial roles with no supervisory responsibilities (n = 749, 37%), less than a third were in non-managerial roles with supervisory responsibilities (n = 555, 27%), and the rest were in first line or frontline managerial roles (n = 730, 36%). Note that participants could skip demographic questions, so totals may not equal 100% or total sample size.
  16. Each of these industries have unique characteristics, and frontline employees working within them cannot be homogenized. Some frontline positions in manufacturing, for example, provide better pay, benefits, and security (depending on the sector, company size, relations with unions) than service sector jobs, which are often characterized as precarious work (a broad term used to describe working arrangements that are risky, temporary, part-time, insecure, uncertain, often provide low or unreliable wages, and typically lack benefits, rights, and other legal protections). These differences are critical in shaping the experiences of women working in each industry.
  17. A two-step cluster analysis was conducted to explore patterns of frontline employee satisfaction among Canadian frontline employees. The solution revealed two clusters: a "very dissatisfied" group (n = 638, 31%), and a "moderately satisfied" group (n = 1,396, 69%).
  18. Commitment was measured across four variables: including agreement on “this company deserves my loyalty,” whether they’d “be happy to spend the rest of their career” there, whether they would recommend the company as a good place to work,” and whether they “feel a strong sense of belonging,” on 1-5 scale (1 being “strongly disagree”, and 5 being “strongly agree”). A chi-square test of independence was conducted to explore the relationship between frontline employee satisfaction level and their commitment to the workplace. The analysis revealed a significant association, χ² (1, n = 2,034) = 339.75, p < .001. Examination of standardized residuals revealed the moderately satisfied (8.1) and very dissatisfied (-12.0) groups differed significantly from what was expected. A logistic regression was conducted to examine the relationship between employee satisfaction and their commitment to the workplace. The model was statistically significant, suggesting that the moderately satisfied employees were 10.7 times more likely to perceive support compared to the very dissatisfied employees, Exp(B) = 10.70, 95% CI [8.02, 14.26], p < .001.
  19. Engagement was measured across three variables: including how often employees felt passionate, committed, and motivated about their work, on a 1-5 scale (1 being “never,” and 5 being “always”). A chi-square test of independence was conducted to explore the relationship between frontline employee satisfaction level and engagement in their work. The analysis revealed a significant association, χ² (1, n = 2,034) = 264.38, p < .001. Examination of standardized residuals revealed the moderately satisfied (6.5), and very dissatisfied (-9.7) groups differed significantly from what was expected. A logistic regression was conducted to examine the relationship between employee satisfaction and their engagement in their work. The model was statistically significant, suggesting that the moderately satisfied employees were 5.5 times more likely to perceive support compared to the very dissatisfied employees, Exp(B) = 5.54, 95% CI [4.46, 6.88], p < .001.
  20. Intent to leave was measured on 1-5 scale (1 being not at all likely to leave, and 5 being very likely). A chi-square test of independence was conducted to explore the relationship between frontline employee satisfaction level and whether they would choose to work for their organization again. The analysis revealed a significant association, χ² (1, n = 2,034) = 110.20, p < .001. Examination of standardized residuals revealed the moderately satisfied (4.3) and very dissatisfied (-6.3) groups differed significantly from what was expected. A logistic regression was conducted to examine the relationship between employee satisfaction and whether they would choose to work for their organization again. Results showed that employees in the moderately satisfied group were approximately 2.9 times more likely to report they’d choose to work for their company again than those in the very dissatisfied group, Exp(B) = 2.85, 95% CI [2.34, 3.48], p < .001.
  21. Lower wages described as an hourly wage below C$20 or an annual salary of below C$40,000. A chi-square test of independence was conducted to examine the wages of men and women frontline employees in Canada. The analysis revealed a significant association, χ² (3, n = 2,034) = 91.23, p <.001, where women were overrepresented in the group earning an hourly wage below C$20 or an annual salary of below C$40,000 more often than men (36% vs 19%).
  22. A chi-square analysis was conducted to examine the relationship between frequent access to skill-building assignment (measured on a 1-5 scale with 1 being “never” and 5 being “always”) and the gender of frontline employee groups. The results indicated a significant association, χ² (3, n = 2,034) = 13.26, p < .01, where women (55%) reported less frequent access than men (43%). Examination of standardized residuals revealed women (2.0) and men (-2.1) differed significantly from what was expected.
  23. A chi-square analysis was conducted to examine the relationship between frequent access to training for higher-paying jobs (measured on a 1-5 scale with 1 being “never” and 5 being “always”) and the gender of frontline employee groups. The results indicated a significant association, χ² (3, n = 2,034) = 12.66, p < .01, where women (54%) reported less frequent access than men (44%). Examination of standardized residuals revealed women (2.0) and men (-2.0) differed significantly from what was expected.
  24. Employees were asked what the hourly wage of their primary job was (before taxes) on a sliding scale from “C$0-9.99” to “C$35 or higher,” and/or what their income was last year (before taxes) on a sliding scale from “under C$20,000” to “over C$65,000"). A chi-squared test of independence was conducted to examine the impact of the employee satisfaction clusters on whether their hourly wage was below C$20 or their annual salary was below C$40,000. The analysis revealed a significant association, χ² (1, n = 2,034) = 91.75, p < .001. Examination of standardized residuals revealed the moderately satisfied (-4.6) and very dissatisfied (6.7) groups different significantly from what was expected.
  25. Company-wide pay raises were asked with a yes/no response. A chi-squared test of independence was conducted to examine the impact of employee satisfaction on their experiences of company-wide raises. The analysis revealed a non-significant association, χ² (1, n = 968) = 0.48, p = 0.49.
  26. Merit- or performance-based raises were asked on a sliding scale between “50-cents or less” and “between C$3-4 and hour” for hourly employees and “less than C$500” and “between C$4,000-5,000” for salaried employees, where they were asked how much their income increased. This was then dichotomized into above/below C$1 hourly or C$2,000 annually. A chi-squared test of independence was conducted to examine the impact of employee satisfaction on their experiences of merit/performance-based raises larger than C$1 hourly or C$2,000 annually. The analysis revealed a significant association, χ² (1, n = 115) = 4.34, p =.04. However, examination of standardized residuals revealed the moderately satisfied (0.7) and very dissatisfied (-1.1) groups did not differ significantly from what was expected.
  27. 2022 frontline employee experience survey. (2022). YOOBIC.
  28. Lower wages described as an hourly wage below C$20 or an annual salary of below C$40,000. A chi-square test of independence was conducted to examine the wages of men and women frontline employees in the Canada and their satisfaction with their workplace rewards and benefits. The analysis revealed a significant association, χ² (3, n = 2,034) = 91.23, p <.001, where women were overrepresented in the very dissatisfied condition and report earning an hourly wage below C$20 or an annual salary of below C$40,000 more often than men or employees of another gender.
  29. Moyser, M. (2019, August 30). Measuring and analyzing the gender pay gap: A conceptual and methodological overview. Statistics Canada; Gender wage gap. OECD. Where the gender wage gap was 16.1% in Canada in 2023 with the wage gap being the difference between the median earnings of men and of women relative to the median earnings of men.
  30. A chi-square test of independence was conducted to examine satisfaction with base pay of men and women frontline employees in Canada. The analysis revealed a significant association, χ² (9, n = 2,034) = 32.61, p <.001, where 59% of women versus 41% of men were dissatisfied with their base pay. Examination of standardized residuals revealed men (-2.3) and women (2.5) differed significantly from what was expected.
  31. An ordinal regression analysis examined the relationship between hourly income and the likelihood that employees belong to the very dissatisfied or moderately satisfied group in relation to their total salary compensation. The model was statistically significant (χ² (6) = 113.32, p <.001), indicating that hourly income is a significant predictor of employee satisfaction. The analysis revealed a key threshold at an hourly income of approximately C$25.00-29.99. Employees earning below this level were less likely to report satisfaction above the very dissatisfied range. As income rose beyond that point, increases in income were associated with only marginal improvements. In other words, while higher pay beyond C$30/hour continued to have a positive association with satisfaction, the improvements were no longer statistically significant, suggesting a plateau. This highlights the need for a rewards strategy that goes beyond pay alone to include benefits, career growth, and professional development.
  32. An ordinal regression analysis examined the relationship between annual salaries and the employees belong to the very dissatisfied or moderately satisfied group in relation to their total salary compensation. The model was not statistically significant (χ² (10) = 6.28, p =0.80), indicating that annual salary is not a significant predictor of employees' satisfaction levels. In fact, among our sample, most salaried employees had annual salaries of $60,000+, even when excluding managers. At this level, most employees are likely able to afford basic necessities, thus improving satisfaction will require a sustained focus on the other drivers: job growth and development opportunities, clear, fair, and individual-centered promotion processes, and supportive manager relationships.
  33. An estimated 31% of frontline employees in Canada — 2.325 million — fall into the very dissatisfied group. Of these, 70% (1.627 million) indicate they would not work for their organization again, putting them at high risk of attrition. With an average turnover cost of $74,658CAD per employee, the potential financial impact of this churn could reach $121.5 billion CAD. By contrast, raising wages by $5CAD per hour (an additional $10,400CAD per year per employee, based on an average 40-hour workweek) for these 1.627 million at-risk employees would cost approximately $16.9 billion CAD annually across industries. However, this investment could yield substantial savings, as reducing attrition would offset these costs nearly sevenfold — with every $1CAD spent on pay increases saving $7.18CAD in reduced turnover costs. Even a $5CAD per hour raise could result in a 7x ROI, making higher wages a financially sound strategy for improving retention.
  34. 2022 frontline employee experience survey. (2022). YOOBIC.
  35. A linear regression was conducted to assess the effects of receiving a series of professional development opportunities on the likelihood of belonging to a very dissatisfied rewarded or moderately satisfied frontline employee group. The model was statistically significant, F (5, 2028) = 201.47, p < .001, and explained 33% of the variance (R² = .33). Among the predictors, formal training for higher-paying roles (B = -.08, SE = .01, β = -.22, p < .001), promotion opportunities (B = -.10, SE = .01, β = -.24, p < .001), availability of educational resources (B = -.06, SE = .01, β = -.15, p < .001), skill-building assignments (B = -.05, SE = .01, β = -.12, p < .001), and job shadowing (B = .02, SE = .01, β = .06, p = .01) were the strongest predictors. In contrast, opportunities for part-time employees to move to full-time roles (β = -.04, p = .07), flexible work arrangements (β = -.03, p =.13) and formal mentorship programs (β = -.05, p = .10) were not statistically significant at p =< .001.
  36. Wilson (2024b).
  37. 2022 frontline employee experience survey. (2022). YOOBIC.
  38. Access to development resources was measured across eight categories: educational resources, flexible work, job-shadowing, mentorship opportunities, part-time work moving into full-time, promotions, skill-building assignments, and training for higher paying jobs, on 1-5 scale (1 being “never,” and 5 being “always”). This aggregated score was then dichotomized into ‘never and rarely’ and ‘sometimes, often, and very often’. A chi-square analysis was conducted to examine the relationship between frequent access to development resources and the level of satisfaction between frontline employee groups. The results indicated a significant association, χ² (1, n = 2,034) = 506.70, p < .001. Examination of standardized residuals revealed the moderately satisfied (8.6) and very dissatisfied (-12.7) groups differed significantly from what was expected.
  39. Access to development resources was measured across eight categories: educational resources, flexible work, job-shadowing, mentorship opportunities, part-time work moving into full-time, promotions, skill-building assignments, and training for higher paying jobs, on 1-5 scale (1 being “never,” and 5 being “always”). A one-way ANOVA was conducted to investigate the relationship between frontline employee satisfaction and access to professional development resources. The results indicated a significant effect, F (1, 2032) = 886.27, p < .001. Employees in the moderately satisfied group reported significantly more frequent access to professional development resources compared to those in the very dissatisfied group.
  40. A chi-square analysis was conducted to examine the relationship between frequent access to job-shadowing (measured on a 1-5 scale with 1 being “never” and 5 being “always,” and dichotomized into “never and rarely” (1-2.99) and “sometimes, often, and very often” (3-5)) and satisfaction between frontline employee groups. The results indicated a significant association, χ² (1, n = 2,034) = 200.47, p < .001. Examination of standardized residuals revealed the moderately satisfied (5.1) and very dissatisfied (-7.5) groups differed significantly from what was expected.
  41. A chi-square analysis was conducted to examine the relationship between frequent access to mentorship programs (measured on a 1-5 scale with 1 being “never” and 5 being “always,” and dichotomized into “never and rarely” (1-2.99) and “sometimes, often, and very often” (3-5)) and satisfaction between frontline employee groups. The results indicated a significant association, χ² (1, n = 2,034) = 331.95, p < .001. Examination of standardized residuals revealed the moderately satisfied (6.6) and very dissatisfied (-9.8) groups differed significantly from what was expected.
  42. A chi-square analysis was conducted to examine the relationship between frequent access to promotion opportunities (measured on a 1-5 scale with 1 being “never” and 5 being “always,” and dichotomized into “never and rarely” (1-2.99) and “sometimes, often, and very often” (3-5)) and the level of satisfaction between frontline employee groups. The results indicated a significant association, χ² (1, n = 2,034) = 491.92, p < .001. Examination of standardized residuals revealed the moderately satisfied (6.8) and very dissatisfied (-10.1) groups differed significantly from what was expected.
  43. A chi-square analysis was conducted to examine the relationship between frequent access to educational resources (measured on a 1-5 scale with 1 being “never” and 5 being “always,” and dichotomized into “never and rarely” (1-2.99) and “sometimes, often, and very often” (3-5)) and reward satisfaction between frontline employee groups. The results indicated a significant association, χ² (1, n = 2,034) = 402.68, p < .001. Examination of standardized residuals revealed the moderately satisfied (6.5) and very dissatisfied (-9.6) groups differed significantly from what was expected.
  44. A chi-square analysis was conducted to examine the relationship between frequent access to skill-building assignments (measured on a 1-5 scale with 1 being “never” and 5 being “always,” and dichotomized into “never and rarely” (1-2.99) and “sometimes, often, and very often” (3-5)) and the level of satisfaction between frontline employee groups. The results indicated a significant association, χ² (1, n = 2,034) = 342.51, p < .001. Examination of standardized residuals revealed the moderately satisfied (5.6) and very dissatisfied (-8.2) groups differed significantly from what was expected.
  45. A chi-square analysis was conducted to examine the relationship between frequent access to training for higher-paying jobs (measured on a 1-5 scale with 1 being “never” and 5 being “always,” and dichotomized into “never and rarely” (1-2.99) and “sometimes, often, and very often” (3-5)) and reward satisfaction between frontline employee groups. The results indicated a significant association, χ² (1, n = 2,034) = 510.19, p < .001. Examination of standardized residuals revealed the moderately satisfied (8.0) and very dissatisfied (-11.8) groups differed significantly from what was expected.
  46. A chi-square analysis was conducted to examine the relationship between frequent access to opportunities for part-time employees to move to full-time jobs (measured on a 1-5 scale with 1 being “never” and 5 being “always,” and dichotomized into “never and rarely” (1-2.99) and “sometimes, often, and very often” (3-5)) and reward satisfaction between frontline employee groups. The results indicated a significant association, χ² (1, n = 2,034) = 232.26, p < .001. Examination of standardized residuals revealed the moderately satisfied (4.4) and very dissatisfied (-6.5) groups differed significantly from what was expected.
  47. Clear and fair promotion processes were averaged across three variables (including whether the company has clear standards for decisions, whether employees can seek clarification about a decision, and whether information is shared regarding how decisions are made) on a 1-5 scale (1 being “strongly disagree,” and 5 being “strongly agree”). A chi-squared test of independence was conducted to examine the impact of employee satisfaction on their experiences of clear and fair promotion processes. The analysis revealed a significant association, χ² (1, n = 2,034) = 415.94, p < .001. Examination of standardized residuals revealed the moderately satisfied (8.9) and very dissatisfied (-13.1) groups differed significantly from what was expected.
  48. An individual-centered approach to promotion was averaged across two variables (including whether the company responds to individual circumstances when it comes to promotion and whether HR takes into account individual information) on a 1-5 scale (1 being “strongly disagree,” and 5 being “strongly agree”). A chi-squared test of independence was conducted to examine the impact of employee satisfaction on their experiences of taking an individual-centered approach to promotion. The analysis revealed a significant association, χ² (1, n = 2,034) = 359.61, p < .001. Examination of standardized residuals revealed the moderately satisfied (8.0) and very dissatisfied (-11.8) groups differed significantly from what was expected.
  49. 2022 frontline employee experience survey. (2022). YOOBIC.
  50. Manager fairness was averaged across three variables (including whether managers follow fair procedures in decision-making, they do not show favoritism, and they apply policies consistently) on a 1-5 scale (1 being “strongly disagree,” and 5 being “strongly agree”). A chi-squared test of independence was conducted to examine the impact of employee satisfaction on their experiences of manager fair treatment in relation to development opportunities. The analysis revealed a significant association, χ² (1, n = 1,304) = 137.78, p < .001. Examination of standardized residuals revealed the moderately satisfied (5.4) and very dissatisfied (-7.2) groups differed significantly from what was expected.
  51. Manager support was averaged across 15 variables (e.g., helping their team progress towards their goals) on a 1-5 scale (1 being “never,” and 5 being “always”). A chi-squared test of independence was conducted to examine the impact of employee satisfaction on their experiences of manager support related to career growth. The analysis revealed a significant association, χ² (1, n = 1,304) = 267.94, p < .001. Examination of standardized residuals revealed the moderately satisfied (7.2) and very dissatisfied (-9.7) groups differed significantly from what was expected.
  52. A chi-square analysis was conducted to examine the relationship between frequent access to flexible work (measured on a 1-5 scale with 1 being “never” and 5 being “always,” and dichotomized into “never and rarely” (1-2.99) and “sometimes, often, and very often” (3-5)) and satisfaction between frontline employee groups. The results indicated a significant association, χ² (1, n = 2,034) = 177.97, p < .001. Examination of standardized residuals revealed the moderately satisfied (3.8) and very dissatisfied (-5.6) groups differed significantly from what was expected.
  53. Job demands allowing for work-life balance was measured on a 1-5 scale (1 being “strongly disagree,” and 5 being “strongly agree”). A chi-squared test of independence was conducted to examine the impact of employee satisfaction on whether their job demands allow for work-life balance. The analysis revealed a significant association, χ² (1, n = 2,034) = 314.06, p < .001. Examination of standardized residuals revealed the moderately satisfied (5.8) and very dissatisfied (-8.6) groups differed significantly from what was expected.
  54. A logistic regression was conducted to examine the relationship between employee satisfaction and their perception of resources and opportunities being distributed fairly by their manager. The analysis showed that employees in the moderately satisfied group were approximately 4.6 times more likely to perceive fairness than those in the very dissatisfied group, Exp(B) = 4.61, 95% CI [3.53, 6.01], p < .001.
  55. A logistic regression was conducted to examine the relationship between employee and their perception of managerial supported in their development. The analysis showed that employees in the moderately satisfied group were approximately 9.1 times more likely to perceive support than those in the very dissatisfied group, Exp(B) = 9.09, 95% CI [6.83, 12.10], p < .001.
  56. Wilson (2024b).
  57. A series of relative importance analyses were conducted to examine the relative importance of variables on Canadian frontline employees’ sense of satisfaction in their base pay, benefits, professional development, advancement opportunities, and pay increases. These analyses required items on similar scales to be grouped together. The first analysis examined the items asked on an agreement scale (e.g., clear, fair, and individual-centered promotion processes, access to flexible work), where the regression model explained 61% of the variance in employee satisfaction with job rewards and growth opportunities ( = 0.62). The second analysis examined the items asked on an agreement scale related to supportive managerial experiences (e.g., managers were fair and consistent in their support) where the regression model explained 23% of the variance in employee perceptions of satisfaction with job rewards and growth opportunities ( = 0.22). The third analysis examined items that asked about the frequency of experiences across various organizational factors (e.g., job growth and development opportunities), where the regression model explained 43% of the variance in employee perceptions of promotion opportunities ( = 0.43). The fourth analysis examined items that asked about the quantity of supportive experiences with managers (e.g., supportive manager relationships), where the regression model explained 40% of the variance in employee perceptions of satisfaction with job rewards and growth opportunities ( = 0.40). Once normalized, the data were organized in terms of relative importance.
  58. In this analysis, we've evaluated the various actions highlighted in the report to understand their relative impact on frontline employee satisfaction. Rather than reporting every action, we've focused on those with the most significant impact. While all actions in this report contribute, some have a bigger influence on driving overall employee experience. The action with the highest impact is providing clear and accessible promotion pathways for employees at all levels (14%), followed by increasing organizational transparency in decision-making (14%), and managers sharing key training or educational resources (13%). Other influential actions that play a role in improving employee satisfaction include: designing processes that enable employees to balance job demands with life needs and responsibilities (12%), providing clear and accessible promotion pathways for employees at all levels (10%), and access to educational resources (8%). Additionally, ensuring promotion opportunities consider individual circumstances (8%), providing access to formal training relevant to higher-paying roles (8%), managers making employee-contributions visible (7%), and enabling HR or talent management departments to understand employees’ individual goals and preferences (7%).