Hay Group Limited

Hay Group Limited

September 12, 2005 16:13 ET

Hay Group to Release Compensation Outlook for 2006

BREAKFAST BRIEFING Compensation Outlook for 2006: The Relationship between Pay Adjustments and the Economy Attention: Business/Financial Editor, Media Editor, News Editor, Government/Political Affairs Editor OTTAWA, ONTARIO--(CCNMatthews - Sept. 12, 2005) - COVERAGE INVITED: BREAKFAST BRIEFING

Compensation Outlook for 2006: The Relationship between Pay Adjustments and the Economy

Hay Group to Release Compensation Outlook for 2006
Breakfast Briefings scheduled in Ottawa, Vancouver, Calgary, Edmonton, Regina, Saskatoon, Winnipeg, Toronto, Mississauga, Kitchener, London, Windsor, Montreal,
Fredericton, Halifax and Charlottetown.

Will 2005 end on a note of accelerating global growth? How will the global conditions affect the economic prospects for growth in Canada for 2005 and 2006 and will this lead to more aggressive compensation adjustments in 2006? What are the salary increase forecasts for 2006 - nationally, regionally and locally across Canada?

Hay Group's latest market survey of almost 500 Canadian organizations reveals the projected compensation increases that organizations are planning for 2006; anticipated trends in variable and CEO/executive pay; and more.

WHAT: Breakfast briefing outlining national, regional and local findings from latest Hay Group survey on compensation trends for 2006.

WHO: Philip Johnson, Regional Managing Director
Ottawa office of Hay Group

WHEN: Wednesday, September 14, 2005
Presentation from 8:00 a.m. to 9:30 a.m. (breakfast available at 7:30 a.m.)

WHERE: Delta Ottawa Hotel & Suites
361 Queen Street, Ottawa, ON

CONTACT: Isabelle Petit, Hay Group, (613) 238-4785, ext. 222
Isabelle_Petit@haygroup.com

About Hay Group: Hay Group Limited is one of Canada's leading professional services firms specializing in people and performance, with 8 offices across the country. It is part of the global organizational and human resources consulting firm Hay Group, which has 78 offices located in 43 countries. Visit our website at www.haygroup.ca

Hay Group Releases 2006 Salary Increases Forecasts

(Ottawa, September 2005) Whether or not the economy will meet earlier expectations, and despite continued global tensions, the projections for 2006 salary increases are as equally optimistic as they were in 2005.

Planned Increases for 2006

According to the most recent Hay Group survey of Canadian employers, next year base pay is forecast to increase by an average of 3.3%, with 88% of surveyed organizations planning to provide base salary increases in 2006. The 3.3% increase compares to last year's projection of 3.1%. Also, more organizations are planning to provide increases in the coming year than they have done over the past few years.

The Hay Group survey, conducted over the summer months, polled almost 500 Canadian organizations in the public and private sectors on their planned adjustments to base and variable pay for 2006. 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 National forecasts varied slightly by job level, ranging from an anticipated increase of 3.0% for the trades jobs to 3.4% for the executive and middle management positions.

Geographically, the survey findings also highlighted differences for compensation increases. Once again, Alberta leads the country with projected increases of 3.8%. Atlantic Canada (2.4%) and Saskatchewan (2.8%) are the only areas noticeably below the national average.

In Ontario, the salary forecasts varied by job level and sector, ranging from an anticipated increase of 3.8% for Trades positions in the Broader Public Sector, to 2.9% for Field Sales Force positions and Trades positions in the Industrial Sector.

Details of the survey results will be released at a breakfast briefing on September 14th at a Hay Breakfast Briefing in Ottawa that will also present trends in Variable Pay and CEO Compensation.

Bonus Payouts

For an increasing number of employees, annual bonuses are a key part of their total pay packages. Nationally, projected bonuses for 2005 do not differ radically from last year's forecasts. For 2005, bonus targets (as a percentage of base pay) range from 6% for trades jobs, 15% for middle management, and 36% for executives.

Hay Group is one of Canada's leading management consulting firms helping clients improve business results through people-focused solutions.

For further details, please contact:

Phil Johnson, Hay Group, (613) 238-4785, ext. 228, or e-mail Phil_Johnson@haygroup.com, OR
Isabelle Petit, Hay Group, (613) 238-4785, ext. 222, or e-mail Isabelle_Petit@haygroup.com

/For further information: Fax : 613-238-3405
www.haygroup.ca/ IN: ECONOMY, FINANCE, LABOUR, MEDIA, SOCIAL

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