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It will really pay to be an Albertan in 2008: survey
2 q0 v7 s8 s; i) D" d" Z# MHikes here could be as high as 5.6% -- almost two points ahead of the Canadian average @/ K3 @4 l* ] R
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Anne Howland) ^7 H1 S7 p" i! j5 t/ J+ s+ D
CanWest News Service* ?- \) |+ o! W: i
6 @$ o) l+ K O" O# j. X+ jFriday, August 31, 2007. n- h1 d* `/ c( G6 @. C
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OTTAWA - Canadians can look forward to a 3.7-per-cent pay raise next year, unless they're working in Alberta, where raises could be as high as 5.6 per cent, according to Morneau Sobeco's annual survey on compensation trends and projections.; Z: V. ~, l& ?1 h( v5 U
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After hitting a five-year high last year, salary increases will stabilize across most of Canada next year, the survey released Thursday showed.
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Earlier this week, Statistics Canada reported that average weekly earnings in June were 3.6 per cent higher than a year earlier, above the three per cent analysts had been expecting and up sharply from 2.9 per cent in May.: @/ y/ w$ a+ t
* `9 H5 n/ E, s* p2 C$ W& V0 [1 N lAccording to Morneau Sobeco, the average salary increase budget of Canadian employers for 2008 is 3.7 per cent, including a provision for promotional increases. Average salary increase expectations vary from 3.1 per cent for operation and production staff, to 3.4 per cent for executives.% I, z) o) t; c* E1 R$ f- |) j
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The sector with the highest salary increase expectations for next year is mining and gas extraction, where pay hikes will be about 4.3 per cent for all job categories.% j. W! J1 l8 s7 N/ k3 w
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Companies fabricating paper or wood products reported the lowest salary increases, ranging from 1.7 per cent for operation and production staff, to 2.1 per cent for executives.5 {; k- w. V; [* K$ b9 z3 P
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In Alberta, operation and production staff could see pay hikes of 4.3 per cent, while executives could take home 5.6 per cent more.
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The bigger pay packets are being driven by a labour shortage in Western Canada, where one-third of survey respondents want to significantly boost staffing levels next year. By comparison, less than 10 per cent of participants in Central Canada foresee significant hiring in 2008.. |' s+ B. ]* T* V$ Y
( L* {% m8 P6 \8 c: r& W"Hot skills recruitment" is a key human resource issue for about 75 per cent of respondents in Western Canada, and about 50 per cent of those in Central Canada.) U: y- p5 P1 u7 w/ e' z4 Z
) q9 o0 }- ]) }/ L) i4 g"People with specialized skills or in trades are in high demand," said Gord Simle, a partner in Morneau Sobeco's Calgary office.& T" E6 S% t7 W$ \3 F$ X. E$ k
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The aging workforce is also a key HR issue for almost half of Canadian employers, with approximately one-third saying they want to offer retirement planning education to their employees, up from one-quarter last year.: R( E3 f: }" w Q
/ {9 m8 E6 ]5 y+ r) y/ C; m, {Health-care costs and disability management will continue to be the top benefit issues for employers in 2008. j' Z1 r) c1 O1 u* P# [' o
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However, the proportion of employers reporting health-care costs as a key benefit issue dropped to about 45 per cent from almost 60 per cent two years ago, as health-care cost increases have trended lower, the survey said.! t! S. X/ W. _. e
7 F) h: _: I8 i) ~"The lower cost increases are the result of less downloading of costs from public plans, as well as a reduction in the releases of new, breakthrough drugs. But that may well be temporary, since there are a significant number of new medications on the horizon," said Keith Morrallee, a partner in Morneau Sobeco's Toronto office.& H2 z* {% V8 [4 E. X
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About 10 per cent of participating employers with defined benefit pension plans said their pension plans have been closed to new employees in the past two years.
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" S4 q3 P& q+ f; l* v# ]4 QA similar proportion indicated their plan will likely be closed to new employees next year.- r7 u- K, `+ s
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"The continued shift is attributable to the increased volatility in pension investment returns and employer pension costs over the last several years," said Jean Bergeron, a director in Morneau Sobeco's Montreal office.
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"Although investment returns were better in 2006, the recent market turmoil due to the credit crisis reminds us that investment risks and volatility exist and must be managed."& I0 }3 }8 Z$ |) T
( r7 r! B: Y5 S* K8 yThe survey, conducted across Canada between June and August, covered 335 organizations serving more than 900,000 employees.
8 p" C2 J( _! t7 q7 G$ X7 A© The Edmonton Journal 2007 |
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