Canadian employees can expect an average salary increase of 2.6% in 2014, ahead of some industrial economies but behind the US and UK, according to a national survey conducted by Toronto-based management consulting firm Hay Group.
The survey of 500 public and private sector employers in Canada shows the projected increase is lower than 2013’s (at 2.9 %) and continues to be relatively close to projected increases of 2.8% for US employees.
The global consulting firm with offices in Toronto says the projected increases for Canada continue to be much lower than the 3.7 % projected before the 2008/09 economic downturn.
Base salary changes in 2013 were exactly as projected for the industrial (2.9%) and public sectors (2.5%) but lower in the financial sector (2.6% vs. 2.9% forecasted).
The highest increases are in the oil and gas sector at 4% despite the strategic issues in the industry that have caused some moderation in long term investment. Chemicals (3.1%) and utilities (3%) were among other sectors that exceeded the national average. Forestry and paper was among the lowest at 2.1%.
According to Hay Group, these high forecasts are a continued reflection of the demand for key skills and experience.
Resource-rich provinces were well ahead of others with Newfoundland and Labrador (4%), Saskatchewan (3.4%) and Alberta (3.2%) leading the rest of Canada where increases fall within 2.1% and 2.6%. Ontario shows an average of 2.5%, just behind Quebec at 2.6%.
Canadian projections were above France (2.5%), Italy (2.2%) and Japan (2%), but behind the US (2.8%) and UK (2.9%), and far behind the forecasts for India (10.8%), China (9%) and Russia (8%).
Hay Group said that 2014 projections for China and Russia, while still much higher than most economies, have moderated between 0.5% to 1% from those made for 2013, while the projections for India have increased by more than 0.5% over 2013.
The survey results show the opportunity to receive short-term incentives has increased for senior and middle management in the private sector, but there are fewer opportunities for employees at the supervisory and clerical levels.