Korn Ferry Hay Group releases 2017 salary forecasts for Canada

Lower salary projections to continue into next year

TORONTO, Sept. 6, 2016 /CNW/ - The Hay Group division of Korn Ferry (NYSE: KFY), the preeminent global people and organizational advisory firm, today announced the results of their annual survey showing projected salary forecasts for 2017.

NOTE: Projections include those organizations reporting 0%.

Highlights

  • Canadians can expect to see average base salary increases of 2.2% in 2017
  • For all organizations, actual base salary changes realized in 2015 was 2.2%, lower than the 2.4% projected a year ago.
  • By job level, all positions will be at or just below the national average of 2.2%.
  • Quebec (2.5%) shows the highest 2017 base salary projections, followed by Manitoba (2.4%); and Ontario and BC (2.3%)
  • Alberta's projection (1.3%) is down from last year's projection of 2.5%, showing the continued impact of the economic decline from the collapsing oil prices
  • BC's projection (2.3%) is the same as last year, and is slightly above the national average (2.2%)

 

Canadians can expect to see average base salary increases of 2.2% in 2017, according to a national survey of almost 700 Canadian public and private sector employers conducted by Korn Ferry Hay Group in June and July. Survey participants include many of Canada's leading employers.

The 2.2% projection is lower than the 2.4% projection for 2016 and 2.6% for 2015, continuing a downward trend in Canadian salary increases that has developed since the start of the economic downturn in 2008/2009.  U.S. salary projections remain the same as for 2016 (3.0%), and Canadians have now fallen further behind their U.S. counterparts.

According to the survey, 65% of Canadian employers are forecasting that they will provide their employees with base salary increases in 2017, which is considerably less than the 70% of employers who projected increases for 2016. This is due to continued economic uncertainty across many sectors in the Canadian economy and to the fact that more employers are now adopting a "wait and see" position before increasing their budgets. 

Resource-based provinces continue to see lower increases

Workers in the oil and gas sector have traditionally received the highest salary increases in Canada, however, with the economic impact of collapsing oil prices, as well as a series of natural disasters hitting the Fort McMurray area, these workers are now projected to receive the lowest increases in the country at 1.5% as employers shed jobs and the labour supply now exceeds demand. Alberta, followed by Newfoundland & Labrador, are the provinces forecasting the lowest increases.

Province

2017 projection

2016 projection

2015 projection

2014 projection

2013 projection

2012 projection

BC

2.3%

2.3%

2.6%

2.3%

2.7%

2.5%

Alberta

1.3%

2.5%

3.1%

3.2%

3.6%

3.4%

Saskatchewan

2.2%

2.7%

2.9%

3.4%

3.2%

3.2%

Manitoba

2.4%

2.5%

2.3%

2.6%

2.7%

2.5%

Ontario

2.3%

2.5%

2.5%

2.5%

2.7%

2.7%

Quebec

2.5%

2.5%

2.6%

2.6%

2.7%

2.8%

Maritimes

1.9%

1.9%

2.1%

2.1%

2.6%

2.4%

Newfoundland

1.4%

2.3%

2.6%

4.0%

3.4%

3.4%

GTA

2.4%

2.5%

2.5%

2.5%

2.8%

2.7%

 

Looking at major Canadian cities, workers in Montreal (2.5%), Vancouver (2.4%) and Winnipeg (2.4%) can anticipate above average increases while those in Calgary (1.2%), Edmonton (1.5%) and St. John's (1.5%) will have to wait for better times.

By sector, pharmaceuticals (2.7%), insurance, high technology and finance (all at 2.6%) will provide the highest base salary increases to their employees.

Details of the survey results will be released at a series of webinars in September.  Visit www.haygroup.com/ca/events for more detail.

If you would like to discuss the forecasts in more detail with one of our compensation experts, please contact Anne Heber at (416) 815 6450 or anne.heber@kornferry.com.

About Korn Ferry
Korn Ferry is the preeminent global people and organizational advisory firm. We help leaders, organizations, and societies succeed by releasing the full power and potential of people. Our nearly 7,000 colleagues deliver services through our Executive Search, Hay Group and Futurestep divisions. Visit kornferry.com for more information.

Our insight is supported by rigorous client data. Our clients are from the private, public and not-for-profit sectors, across every major industry. Korn Ferry Hay Group's Global PayNet database contains data for more than 20 million job holders in 24,000 organizations across more than 110 countries. Click here to learn more about PayNet.

SOURCE Korn Ferry Hay Group

Image with caption: "Korn Ferry Hay Group (CNW Group/Korn Ferry Hay Group)". Image available at: http://photos.newswire.ca/images/download/20160906_C4408_PHOTO_EN_765058.jpg

For further information: MEDIA CONTACT: Anne Heber (416) 815 6450, anne.heber@kornferry.com

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