News in Brief

Employee health and productivity a priority for 2016: Survey

TORONTO — Improving the health and engagement of employees is a top priority for a growing number of human resources leaders, says a recent survey by consulting firm Morneau Shepell.

The annual survey found that 66 per cent of survey respondents see the issues as a priority, compared to 53 per cent last year.

"Faced with uncertain economic times, organizations will be investing in more programs designed to improve productivity," said Randal Phillips, executive vice-president and chief client officer at Morneau Shepell, in a news release.

"Given the pace of change today, there is a strong link between the health and coping skills of employees and their engagement at work," he added.

The survey found that more than 30 per cent of employers plan to have health risk appraisals in place for employees by the end of 2016, and more than one-third of employers are planning to introduce coping skills training in 2016.

"We’re also seeing a big shift in the way employers view their benefits and wellness programs. In the past, they would introduce their programs without evaluating whether or not they were delivering results, but this is changing," said Phillips.

"More than 20 per cent of employers said they are monitoring the overall health and engagement of their organization today, and our survey suggests this will almost double by the end of 2016."

The survey also looked at cost-reduction plans, attitudes towards retirement plans and expected salary increases for next year.

Slightly larger pay raises expected in 2016: Survey

TORONTO — Pay raises for Canadian employees are expected to improve slightly next year with increases of 2.9 per cent expected across all employment categories, says a survey. This compares with pay raises of about 2.5 per cent this year.

The survey of 422 Canadian companies, by Towers Watson, found 98 per cent of employers are planning to give employees raises in 2016.

It also found employers continue to reward their best workers with significantly larger pay raises as they look for ways to retain top performers in a tightening labour market.

"While most organizations are finding the talent they need at current salary levels, we are seeing more employers prioritizing how their salary budgets are being spent, especially in light of their ongoing difficulty in attracting and retaining top performers or employees with critical skills," says Sandra McLellan, North American practice leader, rewards, at Towers Watson.

The survey found employers granted salary increases of 4.5 per cent this year to employees with the highest performance ratings, compared to the 2.5 per cent given to average performers. Employers gave workers with below average performance ratings increases of less than one per cent.

"We’ve seen many companies make dramatic changes to their approach to performance management, including eliminating formal performance reviews or taking a ‘ratingless’ approach to reviews. Many organizations are rethinking whether linking base salary increases primarily to last year’s performance makes sense or if this should be the role of short-term-incentive and bonus programs," said McLellan.

The survey found that more employees are becoming eligible to receive annual and short-term incentives and more are also receiving awards. Based on responses from employers with an annual performance program in place, the survey found 81 per cent of professional and management employees received a bonus this year, up from 76 per cent last year.

"It’s no longer all about base salary. While our research consistently shows the importance of pay when employees decide to stay or leave an organization, we also know their decisions are not just about the money. Opportunities for career development, learning development and challenging work are top drivers of retention," said McLellan.

"It’s the value of the total package — compensation, benefits and non-monetary rewards — that makes the difference. As a result, companies are paying closer attention to understanding how employees value these elements."

Unlimited vacation doesn’t always mean more time off: Survey

MENLO PARK, Calif. — Most executives and workers polled say they would take the same amount of vacation time as they do now even if their employer gave them an unlimited amount of vacation, a recent survey shows.

The survey, by staffing firm The Creative Group, found 72 per cent of executives and 56 per cent of workers would not change the amount of vacation time they took with an unlimited vacation policy.

The survey also found that 24 per cent of executives and 38 per cent of workers said they would take more time off.

"The idea of unlimited vacation time can be attractive and help staff feel more in control of their schedules. But, in reality, many employees have trouble breaking away from the office no matter what the official policy as deadlines need to be met," said Diane Domeyer, executive director of the Creative Group.

"Managers should lead by example, taking time off themselves and encouraging their staff to do the same."

Average weekly earnings down in May: StatsCan

OTTAWA — Average weekly earnings of non-farm payroll employees were $948 in May, down from $953.70 in April, Statistics Canada reports. It revised the April numbers from the previously reported $955.

On a year-over-year basis, weekly earnings increased 1.4 per cent in May, which Statistics Canada says is the lowest growth rate since October 2013.

The increase in weekly earnings during the 12 months to May reflected a number of factors, including wage growth, changes in the composition of employment by industry, occupation and level of job experience, as well as average hours worked per week. Non-farm payroll employees worked an average of 33 hours a week in May, unchanged from the average a year earlier.

Year-over-year earnings of non-farm payroll employees increased in seven provinces in May, with the biggest growth in Prince Edward Island. Earnings were little changed in Nova Scotia, Alberta and Quebec.

Unemployment rate stays at 6.8 per cent

OTTAWA — Canada’s economy gained about 6,600 jobs in July, but the unemployment rate remained at 6.8 per cent, Statistics Canada reports. Compared with 12 months earlier, employment increased by 161,000 or 0.9 per cent as a result of more full-time work.

Industries where employment increased included professional, scientific and technical services and public administration. Employment was down in industries such as finance, insurance, real estate and leasing, as well as in health care and social assistance.

On a provincial basis, Newfoundland and Labrador continued to have the highest unemployment rate at 11.9 per cent, down from 12.3 per cent in the previous month. The unemployment rate also went down in Ontario (from 6.5 per cent to 6.4 per cent) and Quebec (from eight per cent to 7.7 per cent).

Saskatchewan continued to have the lowest unemployment rate at 5.2 per cent, but it was up from 4.7 per cent in June. The unemployment rate also went up in Alberta (from 5.7 per cent to six per cent), British Columbia (from 5.8 per cent to six per cent), Manitoba (from 5.3 per cent to 5.6 per cent), New Brunswick (from 10.8 per cent to 11 per cent), Nova Scotia (from eight per cent to 8.1 per cent) and Prince Edward Island (from 11.1 per cent to 11.6 per cent).

In the United States, the U.S. Bureau of Labor Statistics reports that the American economy added 215,000 jobs in July, but the unemployment rate remained at 5.3 per cent.