Hay Group Releases Salary Forecasts for 2009

    TORONTO, Aug. 27 /CNW/ - There seems to be offsetting sentiment between
lower salary adjustments due to a weakening economy versus higher salary
adjustments due to the ongoing war for talent, especially within the
commodities sectors. Overall, Hay Group's national projections for 2009
Canadian salary increases are similar to last year, but differ noticeably by

    Planned Increases for 2009

    The results from a recent Hay Group survey of Canadian employers,
conducted in June and July of 2008, indicate that the national average
forecast is for base salaries to increase by 3.7% in 2009. While the national
average is similar to last year, the regional values differ quite noticeably.
    Almost 600 Canadian organizations in the public and private sectors
provided details of their planned salary adjustments for 2009. Participants
include many of Canada's leading employers.

    "Over the past year, we've been experiencing symptoms of an overall
weaker economic outlook which would argue for smaller salary adjustments, as
well as the ever increasing need for workers in the commodity sectors, which
would argue for higher salary adjustments. It looks like both events are
happening, as our commodity provinces are forecasting higher salary
adjustments than they did last year, while central Canada is forecasting lower
adjustments than last year", said Karl Aboud, National Director, Reward
Management, Hay Group.

    Saskatchewan has overtaken Alberta as the province with the highest
salary adjustment with a forecast of 5.1% for 2009, while Alberta is at 4.9%.
Atlantic Canada has shown the highest year-over-year increase coming in at
3.5%, which is one-half percentage point higher than last year. Each of these
three regions is experiencing the effect of the need to attract and retain
talent to fuel their commodity sectors.
    Ontario and Quebec, however, are forecasting lower adjustments than a
year ago, coming in at 3.3% and 3.2% respectively. Both provinces are
experiencing the weakening impacts of the general manufacturing sector, and
for the first time in memory, have forecasts that are lower than Atlantic
    The forecasts increases for British Columbia (3.7%) and Manitoba (3.6%)
are at, or very close, to the national average of 3.7%.
    The oil and gas sector is projecting the highest average salary increase
of 5.4%, with mining in at 4.4%. Forecasts of 2.4% by forest products, 3.1% by
retail, and 3.3% by manufacturing are the three lowest sector projections for
    Details of the survey results will be released at a series of Hay Group
breakfast briefings being held in major cities across Canada in September.

    Hay Group is a global management consulting firm that works with leaders
to transform strategy into reality and to help people and organizations
realize their potential. Visit www.haygroup.com

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
e-mail Anne_Heber@haygroup.com OR John Delacourt, Thornley Fallis
Communications, (416) 515-7517 ext. 300, or email
Delacourt@thornleyfallis.com; Karen Nussbaum, Thornley Fallis Communications,
(416) 515-7517 ext. 234, or email Nussbaum@thornleyfallis.com

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