People Strategy – Total Rewards Are One Key Part of the HR Plan
- Effective human resources
Canadian organizations are planning moderate base salary increases for the third year in a row. the Conference Board of Canada released its findings, which continue along the same trajectory as 2013. Some of the highlights that business owners need to consider when putting their compensation plan together for 2014 include:
- Average pay increase for non-unionized employees is projected to be 2.9 per cent in 2014
- The highest average increases are in the oil and gas sector at 4.1 per cent, while at 1.8 per cent the health sector will have the lowest average increases
- Alberta and Saskatchewan are again expecting to offer the highest pay increases next year, as employers in those regions struggle to recruit and retain employees
Nationally, 58 per cent of organizations reported challenges recruiting and/or retaining employees, which is a decline from 69 per cent the previous year. Many organizations try to combat this by offering short-term incentive pay practices. Short term incentive pay targets are in line this year compared to 2013. In 2013, payouts were 11.6 per cent of total base pay spending versus a planned target of 11 per cent. The highest short term incentive pay targets are in oil and gas sector at 16.6 per cent.
For support in creating a Recruitment & Retention Strategy and/or for compensation analysis, contact Higher Talent for an estimate.