Canadian workers will maintain buying power
Human resource consultant William M. Mercer Companies LLC has released a new report indicating that workers throughout the world can generally expect their 2002 salary raises to be higher than their country’s inflation rate.
Mercer’s 2002 Global Compensation Planning Report examines economic, employment and pay trends in more than 60 countries. The report shows that there is a strong connection between economic conditions and pay increase budgets.
Inflation in Canada is expected to be around 2.2 per cent for 2002. The Mercer report reveals that, prior to the events of Sept. 11, Canadian employers were projecting pay increases of 3.4 per cent to 4.0 per cent in the coming year. Mercer now anticipates that employers will reduce their projections by 0.5 per cent to 0.75 per cent, given recent events and current economic conditions. That means that the average salary increase may be as low as 3.0 per cent nationally.
Mercer's findings are reinforced by Compensation Planning Outlook 2002, a report prepared by The Conference Board of Canada.
The Board's report gives additional insight into the Canadian situation. The oil and gas sector is expected to experience above-average compensation increases of 5.3 per cent. Other industries, such as transportation, mining and high technology, will have below-average increases - if any.
The public sector is also expected to post better-than-average increases in its efforts to attract and retain people. In fact, for the first time in many years, increases in the public sector are expected to surpass those in the private sector.
Geographic differences are also anticipated. The Prairie provinces will likely experience the highest raises - an average of 4.3 per cent. Ontario originally forecast average increases of 3.7 per cent, but that figure may have been too optimistic with the downturn in high tech and manufacturing.
Copies of the Mercer report may be obtained by using the “shop” feature at www.imercer.ca. The cost for the printed report is $675. More information on The Conference Board of Canada's report is available by e-mailing [email protected].
Mercer’s 2002 Global Compensation Planning Report examines economic, employment and pay trends in more than 60 countries. The report shows that there is a strong connection between economic conditions and pay increase budgets.
Inflation in Canada is expected to be around 2.2 per cent for 2002. The Mercer report reveals that, prior to the events of Sept. 11, Canadian employers were projecting pay increases of 3.4 per cent to 4.0 per cent in the coming year. Mercer now anticipates that employers will reduce their projections by 0.5 per cent to 0.75 per cent, given recent events and current economic conditions. That means that the average salary increase may be as low as 3.0 per cent nationally.
Mercer's findings are reinforced by Compensation Planning Outlook 2002, a report prepared by The Conference Board of Canada.
The Board's report gives additional insight into the Canadian situation. The oil and gas sector is expected to experience above-average compensation increases of 5.3 per cent. Other industries, such as transportation, mining and high technology, will have below-average increases - if any.
The public sector is also expected to post better-than-average increases in its efforts to attract and retain people. In fact, for the first time in many years, increases in the public sector are expected to surpass those in the private sector.
Geographic differences are also anticipated. The Prairie provinces will likely experience the highest raises - an average of 4.3 per cent. Ontario originally forecast average increases of 3.7 per cent, but that figure may have been too optimistic with the downturn in high tech and manufacturing.
Copies of the Mercer report may be obtained by using the “shop” feature at www.imercer.ca. The cost for the printed report is $675. More information on The Conference Board of Canada's report is available by e-mailing [email protected].
