Canadian employees will see average salary increases of 2.6 per cent in 2015 according to Hay Group's survey of top employers

Employees in the oil and gas, financial services, credit unions and chemical sectors are expected to see the highest increases in 2015; telecommunications, education and government workers to see the lowest increases

NOTE: Projections include those organizations reporting 0%.

TORONTO, Aug. 26, 2014 /CNW/ - Canadian employees can expect to see average base salary increases of 2.6% in 2015, according to a national survey of over 400 Canadian public and private sector employers conducted by Hay Group in June and July. Participants include many of Canada's leading employers.

The 2.6% projected increase is the same as that in 2014, and lower than the 2.9% projection for 2013. Canadian projections have now fallen further behind the U.S. where American workers can expect an average increase of 3.0% in 2015, up from 2.8% projected for 2014.

Projected base salary increases for Canadian workers continue to be much lower than those of 3.7% before the 2008/09 economic downturn.  U.S. projections were also considerably higher at that time.

According to the survey, 83% of Canadian employers will provide their employees with base salary increases in 2015.

Resource-based provinces continue to lead the rest of Canada

The highest increases continue to be seen in the oil and gas sector at 3.8% where demand for key skills continues to outweigh the strategic supply challenges that persist in the industry. Chemicals (3.3%), credit unions (3.2%), and financial services (3.0%) are all sectors with forecasts considerably higher than the national average of 2.6%. These high forecasts are also a continued reflection of the demand for key skills and experience.

Alberta (3.1%) and Saskatchewan (2.9%) will lead the country with projected overall base salary increases higher than the national average, these are again buoyed by the demand for key skills in the resource industries despite the economic challenges in other sectors in these provinces. All other provinces are predicting increases of 2.1 - 2.6%, which are at or below the national average.

Province

2015
projection

2014
projection

2013
projection

2012
projection

2011
projection

BC

2.6%

2.3%

2.7%

2.5%

2.4%

Alberta

3.1%

3.2%

3.6%

3.4%

2.9%

Saskatchewan

2.9%

3.4%

3.2%

3.2%

3.3%

Manitoba

2.3%

2.6%

2.7%

2.5%

2.7%

Ontario

2.5%

2.5%

2.7%

2.7%

2.4%

Quebec

2.6%

2.6%

2.7%

2.8%

2.7%

Maritimes

2.1%

2.1%

2.6%

2.4%

2.7%

Newfoundland

2.6%

4.0%

3.4%

3.4%

3.5%

GTA

2.5%

2.5%

2.8%

2.7%

2.5%

Looking at the 2015 projections for major Canadian cities, workers in Calgary (3.2%), St. John's (3.1%) and Saskatoon (3.0%) will see the highest salary increases.

Other findings

  • For all organizations, actual base salary changes realized in 2014 were exactly as forecasted at 2.6%.
  • Projections by job level show that most positions will be at or just above the national average of 2.6%. Only unionized clerical positions will see average increases (2.3%) which are below the national average.
  • Alberta (3.1%) and Saskatchewan (2.9%) have the highest 2015 base salary projections in Canada.
  • BC's projections will increase to the national average of 2.6%.
  • No change to the Ontario and the GTA projections of 2.5%.
  • No change to the Quebec (2.6%) and Maritimes (2.1%) from last year's projections.
  • Projections for countries such as U.K. (2.5%), Canada (2.6%), U.S. and Australia (3.0%) continue to lag behind those for India (10.7%) and China (8.2%) although the 2015 forecasts for China are lower than the 9.0% made a year ago.

Details of the survey results will be released at a series of breakfast presentations being held in major cities across Canada in September.

About Hay Group

Hay Group is a global management consulting firm that works with leaders to transform strategy into reality. We develop talent, organize people to be more effective and motivate them to perform at their best. Our focus is on making change happen and helping people and organizations realize their potential.

We have over 3000 employees working in 87 offices in 49 countries. Our insight is supported by rigorous data from over 100 countries. Our clients are from the private, public and not-for-profit sectors, across every major industry.

SOURCE Hay Group

For further information: Mike Kwiatkowski, Public Relations Consultant, Enterprise Canada, Tel: 1.905.346.1235, Cell: 1.905.650.7474, mkwiatkowski@enterprisecanada.com; Sophie Fleming, Senior Consultant, Hay Group, Tel: 416.815.6441, sophie.fleming@haygroup.com; Anne Heber, Marketing Coordinator, Hay Group, Telephone 416.815.6450, anne.heber@haygroup.com