Firms cautious but optimistic after Sept. 11

Some expect to tighten budgets, but most hope to retain original salary increases.
By David Brown
|Canadian HR Reporter|Last Updated: 10/24/2001

Concern about the economy, magnified by the events of Sept. 11, is troubling a lot of Canadian businesses but a study conducted late last month shows they are being careful not to overreact.

In a survey, conducted by benefits and compensation consulting firm Morneau Sobeco, 18 per cent of respondents said that in light of the attacks in the United States, they would likely have to revise down original forecasts for salary increases in 2002.

That number may seem surprisingly low to a lot of people “because of all the doom and gloom and people expecting everybody to run to the hills,” said Andre Sauve, a partner and actuary with Morneau Sobeco. “But once you sit down and think about it, it is not so surprising.”