Canadian workers can expect a third
year of modest salary increases in 2014
up front
Photo by lagereek / Photos.com
The oil and gas sector has reported recruitment and retention challenges.
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Amid soft economic growth, Canadian
organizations are planning moderate base
salary increases for the third year in a row.
The average pay increase for non-unionized
employees is projected to be 2.9 per
cent next year, almost exactly in line with
actual gains in 2013, according to The
Conference Board of Canada.
“While Canada’s economy is in relatively
good shape, growth has been sluggish.
For the most part, organizations will be
looking to control costs and carefully allocate
their compensation dollars,” said Ian
Cullwick, Vice-President, Leadership and
Human Resources Research at The Conference
Board of Canada.
“The divide between East and West persists.
Frenzied resource development and
near bottom unemployment rates means
that Alberta and Saskatchewan are again
expecting to offer the highest pay increases
next year.”
HIGHLIGHTS
■■ Average pay increase for non-unionized
employees is projected to be 2.9 per cent
in 2014
■■ The highest average increases are in the
oil and gas sector at 4.1 per cent, while
at 1.8 per cent the health sector will
have the lowest average increases
■■ Alberta and Saskatchewan are again expecting
to offer the highest pay increases
next year, as employers in those regions
struggle to recruit and retain employees
Salary increases vary considerably depending
on region and industry. Regionally,
Alberta and Saskatchewan employers
will lead the nation with projected average
increases of 3.7 per cent. The lowest average
increases are expected in the Atlantic
provinces at 2.5 per cent, followed by Ontario
at 2.6 per cent.
Nationally, 58 per cent of organizations
reported challenges recruiting and/or retaining
employees, a decline from 69 per
cent in 2012.
Organizations in Alberta and Saskatchewan
face a different set of challenges
than those of the rest of the country
– three-quarters of organizations said
they struggled to attract and retain talent.
In the oil and gas sector, 81 per cent of
respondents reported recruitment and
retention challenges.
The expected increase in the private sector
is three per cent, while the average increase
for employees in the public sector is
expected to be 2.7 per cent.
Short-term incentive pay practices are
widely used across most industry sectors.
Actual short-term incentive payouts
exceeded targets last year. In 2013,
payouts were 11.6 per cent of total base
pay spending versus a planned target of
11 per cent. Short-term incentive targets
for 2014 are similar to 2013 targets. The
highest short-term incentive pay targets
will be in the oil and gas sector at 16.6
per cent.
The findings are based on the responses
of 411 organizations across Canada. The
survey was conducted between June and
August 2013.
HRPATODAY.CA ❚ JANUARY 2014 ❚ 13
