This year’s Compensation Planning Outlook explores: rewards strategies and priorities; base pay increases; short and long-term incentive plans; recruitment and retention; performance management; turnover; and anticipated wage settlements.
The average non-union pay increase for 2008 is projected to be 3.9 per cent, 1.7 percentage points ahead of the 2.2 per cent inflation rate forecast for next year. The highest increases—averaging 5.7 per cent—will occur in the oil and gas industry. Wage settlements for unionized workers are expected to average 3.2 per cent in 2008.
Canada’s economy is expected to perform well next year despite the slowdown south of the border. This factor, coupled with a tight labour market, will put upward pressure on pay in 2008. On-going labour shortages and rising turnover rates will keep recruitment and retention issues at the top of the “hot issues” list for Canadian organizations in 2008.