Morneau Sobeco

Morneau Sobeco

August 19, 2010 17:04 ET

Some Optimism in Forecast Salary Increases for Canada in 2011

MONTREAL, QUEBEC--(Marketwire - Aug. 19, 2010) - Despite the fragile economic recovery, the number of Compensation – Trends and Projections 2011 respondents who anticipate salary freezes in 2011 is fewer than last year, and those planning salary increases are more generous than a year ago. 

The 305 survey respondents expect salary increases of 2.7% on average, slightly higher than last year's level. In comparison, the 2010 Morneau Sobeco National Compensation Survey reported the central trend actually observed was an increase of 2.2%. Salary budgets are predominately expected to increase from 2% to 3.5% overall. 

Survey respondents represent organizations which employ a total of more than a million workers in Canada, primarily in the manufacturing (31%), finance (13%) and trade (13%) sectors. The average expected increase in salary budgets in these sectors is, respectively, 2.8%, 3.1% and 2.5%. The highest predicted increases are by respondents in organizations in the oil and gas extraction sector (average of 4%) and the lowest by those in organizations in the healthcare and social assistance sector (average of 2.1%). 

For survey respondents in Alberta, predicted profitability is up significantly compared to their forecasts a year ago. This optimism is reflected in the predicted salary increases by region, with respondents in Calgary reporting the highest increases (3.4%) of all major Canadian cities, whereas last year they had the lowest.

Opinions about certain general human resource issues have evolved in line with survey findings regarding salary increases. Workforce reductions are less of a priority than last year, and recruitment is more of a priority. Controlling labour force costs is still a major issue for 30% of respondents and close to half of them are anticipating changes in salary structures in 2011, a significant increase over last year's findings.

The survey was conducted across Canada between mid-June and mid-August 2010. It is Morneau Sobeco's 28th Annual Compensation and Trends Projections Survey.

Contact Information

  • Morneau Sobeco
    Richard Beliveau
    Partner
    514-392-7853
    or
    Morneau Sobeco
    Michel Dube
    Director Compensation Consulting
    514-392-7802