Raises for 2006 on par with recent years

Salary surveys forecast base pay increases between 3.2 and 3.4 per cent
By Shannon Klie
|Canadian HR Reporter|Last Updated: 10/11/2005

Employers are cautiously optimistic that the Canadian economy is improving, according to the most recent round of salary and compensation surveys that predict Canada-wide base salary increases averaging from 3.2 to 3.4 per cent in 2006.

The Watson Wyatt Worldwide survey, which included 422 organizations, found that after three years of declining salary increases, the average raise in 2005 was up slightly from 2004’s 3.2-per-cent increase. However, this is still below the 2001 average increase of 4.1 per cent. The survey predicts that next year’s increase will be 3.3 per cent.

“As the economy continues to improve and the competition for high performing individuals intensifies, employers will face increasing pressure to raise salaries at a faster rate to attract and retain talented employees,” said Graham Dodd, national practice director of Watson Wyatt’s human capital group.