Highlights from the 2026 Canada New Graduate and Generation Z Compensation Survey

Attracting new graduates to your organization in Canada comes with its own set of dynamics. The 2026 Canada New Graduate and Generation Z Compensation Survey offers fresh insights into what drives talent decisions for new graduates and Gen Z professionals across Canada. Whether you're recruiting in Toronto, Calgary, Vancouver, or Montreal, understanding the five trends that matter most in the current market will help you build compensation and benefits strategies that resonate with the talent you're trying to attract.

Pay transparency is moving forward, but progress is still catching up

In Canada, 46.2% of organizations now provide pay transparency to new graduate hires, a notable increase from broader market trends but still lagging behind some peer markets. The gap suggests Canadian employers have room to differentiate themselves through transparency. Young professionals entering the workforce are increasingly asking about salary ranges before they apply. If you're among the 53.8% of organizations that doesn't share compensation details upfront, you're likely losing candidates to competitors who do. The transparency that works in Canada includes clear communication during recruitment, salary ranges in job postings, and visible pay progression structures aligned with collective bargaining agreements or internal equity practices where applicable. For organizations operating across multiple provinces with different pay equity legislation, transparency becomes both a compliance issue and a competitive advantage. Making your compensation approach clear signals fairness and attracts new grads who value honesty about their earning potential.

Canadian organizations are split almost evenly when it comes to workplace location: 39.9% require new graduates to work on-site full-time, while 48.0% offer hybrid arrangements. Only 2.0% allow fully remote work. What this tells you is clear. Gen Z in Canada values office time and in-person collaboration but insists on flexibility. The hybrid model gives them what they want. The chance to connect with teammates face-to-face while controlling when and where they work. For Canadian employers with geographically dispersed teams or operations in smaller markets, this balance is particularly valuable. Young talent in Canada sees hybrid as the default and views rigid policies as outdated.

Bonuses remain a core part of new grad packages

In Canada, 70.3% of organizations include new graduates in annual bonus programs. This is a common practice consistent with what we're seeing across markets. What stands out is how bonuses are distributed: 68.1% of those organizations pay bonuses to more than 75% of their new hire cohort. This consistency shows that Canadian employers view bonuses as part of the regular compensation package, not a selective perk. The typical target for bonuses is 6-10% of base pay, and that standard has held steady. For new graduates earning in the $60,000 to $75,000 range depending on degree and discipline, that translates to an expected annual bonus between $3,600 and $7,500. Sign-on bonuses, however, tell a different story in Canada. Only 10.8% of organizations offered them, which is well below what we see in other markets. This suggests Canadian employers are more focused on competitive base salaries than signing incentives. If you're competing for talent with limited budgets to raise base pay, bonuses remain your most reliable tool for remaining competitive and delivering on new grads' compensation expectations.

Campus recruiting in Canada is selective and shows mixed momentum

Canadian organizations take a more measured approach to campus recruitment than their peers. Only 62.2% typically send recruiters to college and university campuses, and 37.8% don't recruit on campus at all. Among those who do, 78.4% plan to continue this approach, but 19.4% are unsure about their campus strategy. The picture that emerges is one of organizations testing different recruitment channels rather than committing fully to campus engagement. This creates opportunity for employers willing to invest in consistent campus presence. Co-op programs are central to many organizations' strategies. They hire at reasonable scale and can identify talent early. Co-op and summer intern hiring have grown slightly over the past year, suggesting employers continue to see value in the pipeline. If you're looking to build a long-term talent supply, campus engagement remains valuable, but you may face less competition than in other markets. Being selective and strategic in which schools you target can pay off more quickly in Canada.

Well-being and flexibility perks matter more than financial add-ons

Canadian Gen Z professionals value perks differently than employers might expect. Mental health support and wellness programs rank among the most sought benefits, alongside flexibility in how and when work gets done. What Gen Z actually wants are benefits that support daily well-being: flexible work arrangements, casual dress codes, paid time off for volunteering, and genuine wellness programs. Social perks like employee resource groups, team events, and community service opportunities also resonate strongly. The emphasis across all perk categories is personal: benefits that signal the organization cares about the whole person, not just their productivity. Canadian organizations are still developing their thinking here. Only 12.9% have changed communication methods to accommodate Gen Z preferences, suggesting most have room to evolve. Your focus should be on demonstrating that your workplace respects boundaries, supports mental health, and offers real flexibility. When you do, you attract talent that stays engaged and committed for the long term.

Building a strategy that works in Canada

The Canadian talent market for new graduates is evolving. Gen Z expects transparency, flexibility, and a workplace that values their well-being as much as their contributions. The employers winning this competition aren't just offering higher base salaries. They're being clear about how pay works, offering hybrid work that respects their teams' needs, including bonuses as standard, engaging thoughtfully with campus talent, and building workplace cultures that feel personal and authentic. Starting salaries for bachelor's degree holders average around $67,000, with engineering graduates commanding premiums closer to $74,000. The variation across disciplines and provinces shows that compensation strategy needs to account for local market conditions. Your 2026 hiring strategy should reflect these realities. When you align compensation, flexibility, and culture with what Gen Z actually values, you attract talent that's eager to build their career with your organization and contribute meaningfully from day one.

Looking for more details?

The Canada New Graduate and Generation Z Compensation Survey covers compensation and total rewards for a variety of entry-level work arrangements such as new hires, internships, and co-ops.  Additionally, you can review how starting pay varies by education level and field of study.

Give our Marsh colleagues a call today to see how this survey or our other surveys and workforce insights products could add value to your compensation strategy and administration.

Get in touch with us at 855-286-5302 or Surveys@mercer.com.

About the author

Rebecca Hall, Principal

Rebecca spent much of her career working in compensation in various corporate roles then transitioning to consulting with Mercer. Her current role, as the Content Leader for imercer.com, allows her to leverage her knowledge of human resources and talent strategy to create materials supporting Mercer’s Products & Services in North America.