Survey shows trends towards giving employees raises in 2007

News Release
Hay Group

TORONTO, Sept. 5 /CNW/ - Whether or not the economy will meet earlier expectations, and despite continued global tensions, Hay Group’s projections for 2007 salary increases are as optimistic as they have been in recent years.
Planned Increases for 2007
Results from the most recent Hay Group survey of Canadian employers show that base pay in 2007 is forecast to increase by an average of 3.5%. This is about a quarter of a percentage point higher than the projections for the last few years.
The Hay Group survey, conducted in June and July, polled almost 600 Canadian organizations in the public and private sectors on their planned adjustments to base and variable pay for 2007. Participants include many of Canada’s leading employers.
“Over the past year, we’ve been witness to many different turn of events, but on balance there is enough optimism that the forecasted salary increases are showing stronger growth than they have in the recent past”, said Karl
Aboud, National Director, Reward Management, Hay Group.
The Oil and Gas sector is projecting 5.3% increases to Actual Base Salary and, as expected, these are the highest increases of all sectors. The 2.5% increases being projected by the Forest Products Sector are the lowest, reflecting this sector’s continued difficult economic conditions. Survey results will also be presented by Job Level and by Geography. The Broader
Public Sector is forecasting increases of 3.3%.
Details of the survey results will be released at a Hay Group breakfast briefing on September 6th in Toronto that will also highlight trends in the structure of salary ranges.
Bonus Payouts
Annual bonuses are a key part of total pay packages for an increasing number of employees. Nationally, projected bonuses for 2006 do not differ radically from last year’s forecasts. For 2006, bonus targets (as a percentage of base pay) range from 7% for trades jobs, 15% for middle management, and 38% for executives.