Company-wide raises going the way of the dodo: Report

Productivity improvements cited as top HR challenge
By David Brown
|Canadian HR Reporter|Last Updated: 11/25/2003

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nder pressure to contain labour costs, Canadian employers are being more selective in handing out raises and looking for ways to rein in benefits spending, says the Conference Board of Canada.

According to the 363 organizations surveyed for the business think tank’s annual compensation forecast, average increases for non-union workers in 2004 are projected to be 3.4 per cent. While the increase is still 1.5 points above inflation, it marks the third consecutive year of a downward trend in wage increases (the average increase in 2003 was 3.7 per cent). It’s a trend that will continue until Canadian businesses can become more productive, said Prem Benimadhu, vice-president of organizational performance at the Conference Board.