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.
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.
Hay Group is a global consulting firm that works with leaders to
transform strategy into reality and to help people and organizations realize
For further information:
For further information: Karl Aboud, Hay Group, (416) 815-6410, or
e-mail Karl_Aboud@haygroup.com; Anne Heber, Hay Group, (416) 815-6450, or