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Canadian newcomers are often underpaid and overlooked for advancement opportunities, but experts say there are ways for them – and their employers – to level the playing field.
According to a Statistics Canada report published in December, immigrant median wages one year after arrival decreased by 10.6 per cent between 2022 and 2023, the largest decline since 1991. And those who arrived within the last five years are twice as likely to be unemployed as those born in Canada.
Research conducted by Toronto Metropolitan University also finds newcomers are more likely to be overqualified and underpaid, with 44 per cent of those who arrived in the previous decade in jobs that match their education level compared to 64 per cent of Canadian-born workers aged 25 to 34.
Once employed, newcomers are often more hesitant to ask for advancement opportunities. According to a recent Western Union survey of its global workforce, 46 per cent of immigrant employees have never asked for a raise. Furthermore, 72 per cent feel they’ve been overlooked for career advancement opportunities, 21 per cent struggle with workplace confidence and 19 per cent are not comfortable using office jargon.
“It’s not about being passive; for many migrants, asking for a raise carries a perceived risk,” says Western Union Canada’s vice-president of digital, Ranjit Sarai. “They might be unsure of the cultural norms and they don’t want to be perceived as someone that is difficult.”
Mr. Sarai suggests the data doesn’t point to a performance gap, but rather a confidence gap. He says many newcomers don’t feel they’re in a position to negotiate, while others may not be aware that negotiation and self-advocacy are necessary for advancement.
“You might lose high-performing talent, simply because you’re not addressing some of these perceived confidence gaps,” Mr. Sarai warns. “Having that individual working at the level that they deserve drives productivity.”
There are ways for employers to close that gap among all marginalized groups, according to Sonia Kang, a professor of organizational behaviour and human resources management at the University of Toronto.
“Most opportunities in life are an opt-in process, which means you have to do something active in order to be considered and if you don’t apply, you won’t get it,” she says. “When something is an opt-in, there are disadvantages for women and people from other groups who may not feel they’re going to be considered seriously or may not think they’re worthy.”
According to research conducted by Prof. Kang, who also serves as the Canada research chair in identity, diversity and inclusion, employers can reduce those barriers by switching to an opt-out process, in which qualified individuals are automatically considered for raises and promotions.
“When we did that, we were able to eliminate the gender gap,” she says. “Women are more likely to be promoted and there’s no impact on wellbeing because they can still opt out if they want – and I think it would be similar for newcomers.”
Though negotiation can be intimidating, especially in a foreign language or unfamiliar work culture, Canadian immigrants can better advocate for themselves by adopting the “Three Ps” of negotiation, according to Andres Lares, chief executive officer of the Shapiro Negotiations Institute, a Baltimore-based provider of sales, influence and negotiation training and consulting.
No. 1 is preparation, Mr. Lares says. “That’s really the only aspect of this negotiation over which you have control. That means finding peer benchmarks, market data, job data for your organization, for that role, and as much objective evidence you can,” he says. “That will help you improve your performance, increase your confidence and remove some of the emotional risk.”
No. 2 is probing, which means asking relevant questions, such as what skills are required to reach the next level, what typical compensation looks like for that role or what your employer’s plans are for your advancement.
No. 3 is making a proposal. “And you want to aim high, within reason, using the data you’ve gathered,” Mr. Lares says. “Negotiators that are negotiating from a point of less leverage, less confidence, less experience, need to have a process that’s repeatable. So, when you follow it not only does it improve performance, but it also gives them confidence.”