Canadian firms predicting average salary increase of 3.25 per cent: survey
Canadian firms are projecting average salary increases of 3.25 per cent in 2004, according to a survey by Mercer Human Resource Consulting.
And just a handful or organizations — 3.5 per cent — are projecting salary freezes, an indication that most Canadian companies remain optimistic about their prospects for the coming year, said Danielle Bushen, head of Mercer’s Global Information Services business in Canada.
“In spite of a tough 2003, a year when corporate discretionary spending was cautious and organizations faced numerous external economic factors, companies are staying the course and looking to award increases well above inflation and only slightly behind last year’s average increases of 3.3 per cent,” said Bushen.
Natural resources forecast the highest increase
Organizations involved in natural resources, led by the oil patch, are forecasting the highest increases at 3.6 per cent, followed by professional services at 3.3 per cent. Mercer said early indications show that no sectors are looking much below a three per cent increase in their 2004 planning.
At 3.3 per cent, the highest pay increases are expected to be awarded to executives. The weakest increases are expected for clerical and hourly staff at 3.0 per cent.
“A relatively soft U.S. economy is also bringing Canadian and American increases closer together than they have historically been,” said Bushen. “On average, Canadian increases have been one to two per cent lower than those in the United States. This year’s predictions are less than 0.5 per cent below similar predictions from U.S.-based companies.”
The numbers are taken from Mercer’s 2004 Compensation Planning Survey which represents data collected from 260 organizations across Canada.
And just a handful or organizations — 3.5 per cent — are projecting salary freezes, an indication that most Canadian companies remain optimistic about their prospects for the coming year, said Danielle Bushen, head of Mercer’s Global Information Services business in Canada.
“In spite of a tough 2003, a year when corporate discretionary spending was cautious and organizations faced numerous external economic factors, companies are staying the course and looking to award increases well above inflation and only slightly behind last year’s average increases of 3.3 per cent,” said Bushen.
Natural resources forecast the highest increase
Organizations involved in natural resources, led by the oil patch, are forecasting the highest increases at 3.6 per cent, followed by professional services at 3.3 per cent. Mercer said early indications show that no sectors are looking much below a three per cent increase in their 2004 planning.
At 3.3 per cent, the highest pay increases are expected to be awarded to executives. The weakest increases are expected for clerical and hourly staff at 3.0 per cent.
“A relatively soft U.S. economy is also bringing Canadian and American increases closer together than they have historically been,” said Bushen. “On average, Canadian increases have been one to two per cent lower than those in the United States. This year’s predictions are less than 0.5 per cent below similar predictions from U.S.-based companies.”
The numbers are taken from Mercer’s 2004 Compensation Planning Survey which represents data collected from 260 organizations across Canada.
