Salary increase expecations optimistic for 2008

News Release
Hay Group

TORONTO, Sept. 4 /CNW/ - Whether or not the economy will meet earlier expectations, and despite continued global tensions, Hay Group’s projections for 2008 salary increases are as optimistic as they have been in recent years.
Planned Increases for 2008
The results from a recent Hay Group survey of Canadian employers, conducted in June and July of 2007, indicate that the national average for base salary is forecast to increase by 3.8% in 2008. This is about a quarter of a percentage point higher than the projections for the last few years.
Over 550 Canadian organizations in the public and private sectors provided details of their planned adjustments to base and variable pay for 2008. Participants include many of Canada’s leading employers.
“Over the past year, we’ve been witness to many different turn of events, but on balance there is enough optimism that the forecasted salary increases are showing stronger growth than they have in the recent past”, said Karl Aboud, National Director, Reward Management, Hay Group.
Alberta leads the provincial averages with a forecast increase to base salary of 4.9% for 2008, and Saskatchewan follows with a forecast of 4.6%, reflecting its competition for employees with Albertan employers.
The Oil and Gas Sector is projecting average salary increases of 5.3%, which are, as expected, the highest among all sectors. The 2.6% increases being projected by the Forest Products Sector are the lowest, reflecting this sector’s continued difficult economic conditions. Survey results will also be presented by Job Level and by Geography. The Broader Public Sector is forecasting increases of 3.6%.
Details of the survey results will be released at a series of Hay Group breakfast briefings in major cities across Canada in September.
Bonus Payouts
Annual bonuses are a key part of total pay packages for an increasing number of employees. Nationally, projected bonuses for 2007 do not differ radically from last year’s forecasts. For 2007, bonus targets (as a percentage of base pay) range from 7% for production jobs, 15% for middle management, 30% for senior management and 50% for senior executives.