Salary freezes lower forecasts for 2010

Predictions range from 2.3 to 3 per cent
By Sarah Dobson
|Canadian HR Reporter|Last Updated: 10/05/2009

Despite a very tough year, salary forecasts for 2010 are surprisingly optimistic, according to industry analysts, with predictions ranging from 2.3 to three per cent in Canada.

“Even a month ago, there was a very cautious approach to any projections on a go-forward basis and we were hearing still a lot of headway had to be made as well as a lot of pitfalls in the system, so we thought there would be a little more caution. But that’s not what we’re seeing,” said Liz Wright, human capital group leader at Watson Wyatt in Toronto.

The average projected salary increase for 2010 is three per cent for those granting increases and 2.7 per cent when factoring in projected wage freezes, found Watson Wyatt’s survey of 106 Canadian employers.