Pay raises expected to reach 2.6 per cent in 2020: report
Tech sector outpaces national average by half a percentage point
08/22/2019|hrreporter.com|Last Updated: 08/27/2019
Salary increases had held steady at 2.5 per cent for the last three years, according to Mercer. Devonyu/iStock
Merit-increase budgets have increased to 2.6 per cent in 2019, and are expected to remain at this level next year, according to a Mercer report.
The findings of the 2019/2020 Canadian Compensation Planning Survey — which surveyed 652 employers — exclude organizations which have implemented salary freezes.
Salary increases had held steady at 2.5 per cent for the last three years, according to Mercer, a global consultancy with offices in Toronto.
However, sector-by-sector variances are considerable, with hot sectors like technology surging to 3.2 per cent, reflecting a more robust competition for talent.
“Getting compensation right is critical to your employee value proposition,” says Gordon Frost, partner and career business leader at Mercer Canada. “When you have the right compensation strategy in place, you can bolster employee retention, and build a thriving workforce.”
Top factors influencing compensation decisions for next year are retention (72 per cent) and attraction concerns (70 per cent).
Additional survey findings include:
- In 2019, high performers received 1.85 times the salary increase of average performers.
- Most organizations are continuing to invest in salary increases, with only six per cent reporting a salary freeze for executives in 2019, and 4.8 per cent reporting a freeze for non-executives.
- Fifty-seven per cent of participating organizations plan to continue with the same salary increase budget in 2020.
© Copyright Canadian HR Reporter, HAB Press. All rights reserved.