Salary increases on the table for 2012

Forecasts in 3 per cent range, but recent market turmoil could dampen optimisim
By Sarah Dobson
|Canadian HR Reporter|Last Updated: 09/11/2011

While the dramatic market fluctuations of recent weeks have made for uncertain times, Canadian employers are predicting salary increases of 2.8 per cent to 3.2 per cent in 2012 — though the forecasts are based on surveys done in June and July.

Employers are projecting average base pay increases of 3.1 per cent for 2012, according to Mercer, based on a survey of 675 organizations and excluding zero budget increases. Employers actually awarded pay increases of three per cent in 2011, up from 2.7 per cent in 2010 and two per cent in 2009, found the Mercer Compensation Planning Survey.

“It’s a little bit higher than it was last year so, from an employee perspective, it’s certainly encouraging and to the extent it’s somewhat indicative of how strong the economy is or the market and labour is, it’s likely to be viewed positively,” said Iain Morris, Toronto-based human capital business leader at Mercer in Canada.