Slight gains in salary budgets for Canada

WorldatWork survey predicts 3.8-per-cent rise

Canadian companies are planning an overall salary budget increase of four per cent in 2007, up from 3.8 per cent last year. The 34th annual WorldatWork Salary Budget Survey finds, on average, organizations in Canada are awarding a base pay increase to 91 per cent of all employees this year.

However, these increases for total salary budget (money allocated for all employee salaries, excluding hard costs such as insurance and payroll taxes) are projected to decline to 3.9 per cent next year and employers in some cities already report a decline in increases: Hamilton (3.5 per cent, projected 2008: 3.6 per cent), Montreal (3.5 per cent, projected 2008: 3.5 per cent), Ottawa (3.5 per cent, projected 2008: 3.6 per cent) and Toronto (3.6 per cent, projected 2008: 3.6 per cent).

“In this era of four-per-cent increases, managers will have to think more holistically in order to produce meaningful rewards,” said Anne Ruddy, president at WorldatWork in Scottsdale, Ariz., an international association focused on attracting, motivating and retaining employees. “HR practitioners need to learn the art and science of ‘total rewards’ to attract, motivate and retain talent. Compensation is one of the elements but so are benefits, work-life, recognition and career development.”

In comparison, United States companies are planning an increase of 3.9 per cent both for 2007 and 2008.

Respondents to the survey are WorldatWork members and 2,500 participated for North America.

Latest stories