Following a turbulent year, signs of life in the economy are leading to cautious optimism among pay planners. This year’s Compensation Planning Outlook Survey found that planned increases for 2010 are expected to come in slightly higher than actual increases in 2009. Increases averaged 2.4 per cent for non-unionized employees in 2009. Looking ahead, the survey results suggest that the majority of Canadian workers can expect modest real wage gains in 2010. The average non-union pay increase for 2010 is expected to be 2.7 per cent nationally. With inflation forecast at 2.2 per cent in 2010, that translates into real wage increases of 0.5 per cent. Though the overall outlook for 2010 is more positive, compensation planners remain acutely aware of the need to keep costs under control while balancing the need to attract, motivate, and retain workers with the right talent and skills to ensure business success.

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