Modest budgets for merit increases challenge pay for performance model (Guest Commentary)

Can pay for performance be meaningful when there aren’t enough dollars for real differentiation?
By Claudine Kapel
|Canadian HR Reporter|Last Updated: 11/17/2012

Projections regarding average salary increases for 2013 aren’t proving to be big news — with employers budgeting slightly more than three per cent — but they do raise interesting questions about pay for performance.

Mercer reported that projected average salary increases for 2013, among more than 750 Canadian employers, are expected to be 3.2 per cent, the same as the average actual salary increase reported for 2012.

This is up slightly from three per cent in 2011 and 2.9 per cent in 2010.