Canadian employers are expecting base salary increases of 2.8 per cent in 2012, according to a survey of 655 organizations in June and July 2011 (with 40 per cent from Ontario) by Hay Group.
That compares to 2.6 per cent predicted for 2011, where the actual rate was slightly higher at 2.7 per cent.
There’s a degree of optimism or at least a sense of stability, said Karl Aboud, director of the Canadian reward practice at Hay Group in Toronto. However, it’s too early to predict how the recent days of market turmoil will have an effect, he said.
Newfoundland and Labrador and Alberta will lead the way in 2012, with increases of 3.4 per cent each, followed by Saskatchewan at 3.2 per cent, Quebec at 2.8 per cent and Ontario at 2.7 per cent. Manitoba and British Columbia are expected to follow at 2.5 per cent each, with Atlantic Canada coming in last at 2.4 per cent, found Hay Group.
In looking at sectors, mining (3.8 per cent) and oil and gas (3.7 per cent) will lead the way for 2012, along with services (3.3 per cent), credit unions and banks (3.2 per cent each), construction (3.1 per cent) and consumer durables, pharmaceutical and medical and chemicals (three per cent each). Bottoming out the list of salary increase projections is health care (1.3 per cent) and retail (2.3 per cent), found the survey.
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