A new study has revealed that Canadian salaries are projected to increase by 2.79% in 2015.
Pal Benefits Inc., a human resources consultancy, said that the projected increase was obtained from a survey of 401 organizations across Canada – mainly in Ontario, British Columbia, and Alberta.
The estimate is almost the same as the survey’s 2014 projected increase in Canadian pay of 2.74%.
In addition to a steady increasing salary, the survey also found that 8% of employers plan on freezing salaries in 2015 – similar to projections made last year too.
According to the study, industries that can expect to see the highest percentage increase in salaries, of around 3%, include the engineering, financial services, and high tech sectors. While durable manufacturing salaries are expected to only increase by 2.5%.
Steven Osiel, a spokesperson for Pal Benefits, said:
“Organizations appear to be staying the course when it comes to salary increases and freezes.”
“However, it’s worth noting that there are more companies planning an increase of two per cent or more, as compared to last year’s survey. 43 per cent will be giving raises in the 2.6 to three per cent range.”
Steven Osiel added that despite Canadian organizations stating that its top compensation priority is benchmarking and market position analysis, “it’s interesting that the most important factor when finalizing the annual merit budget is actually internal budget constraints.”
“This may need to change to reflect the realities of retaining and motivating employees, which have been found to be the top organizational priority for 86 per cent of the companies that we surveyed. As more baby boomers retire and the talent pool shrinks, attracting new talent may become a priority in the near future.”
A baby boomer is somebody who was born between 1945 and the mid 60s.