PAY HIKES IN STORE FOR ALL
PAY HIKES IN STORE FOR ALL: SURVEY
Globe and Mail
BY WALLACE IMMEN
Buoyed by a stronger domestic economy, Canadian employers report they are projecting average salary Increases of 3.4 per cent next year, up from an average of 3.2 per cent this year, according to preliminary results from Mercer Human Resource Consulting's 2006 compensation planning survey.
"All this is good news for Canadian employees," says Marc Chartrand, a principal in Mercer's
"We are seeing optimism not only about salaries but positive growth in all regions and industries."
Employers expect pay increases to average about 3.6 per cent for executives, while the average for clerical and hourly staff Is expected to be 3.3 per cent. Only 7 per cent of employers were considering a salary freeze.
The results are based on data from 384 organizations representing approximately 1.6 million unionized and non-unionized employees in
The employers said, however, that the salary increases may come with more strings attached.
According to the preliminary results, 47.5 per cent of respondents said they already tie compensation to performance and a further 16.8 per cent said they are considering shifting to performance-based salary increases in 2006.
And companies are broadening their offerings of non-monetary awards. Rewards such as extra vacation time, travel incentives, prizes for being the top performer are already in use by 67 per cent of employers, and another 10.7 per cent have that in their plans for next year. The rest do not have incentives and are hot considering them, the survey found.
The top salary increases are expected to be in the oil and gas sector, with an Average overall hike of 4.6 per cent, the survey found. The pharmaceutical and biotechnology sector are next, with projected increases of about 3.7 per cent. Natural resources companies and organizations in the public sector are also expecting above-average raises at about 3.5 per cent. There Is! no economic sector in which employers expect an Increase of less than 3 per cent. And pay hikes will also be relatively consistent across the country, the survey found. Employees in