A new study has found that those living in the western provinces are going to make out better in the pay department next year. But those in the oil and gas industry will get the biggest chunk of the pie, no matter where they live.
The Mercer 2012/13 Canada Compensation Planning Survey, released yesterday, reveals that the average raise in base pay in Canada is expected to be 3.2%, the same as the average actual salary increase reported for 2012. This is up slightly from the 2010 and 2011 numbers.
The study also found that Western Canada is continuing to differentiate itself with higher increases than the rest of the country. Alberta markets forecast an average increase of 3.3%. The larger differentiation happens at the industry level, though—oil and gas companies lead the way with a forecasted increase of 4.2%, while high-tech/telecommunications and public sector/not-for-profit companies are forecasting 2.4% and 2.5%, respectively.
Employers continue to recognize that in order to attract and retain top-performing employees, they’re going to have to reward them in line with industry dynamics,” says Iain Morris, leader of Mercer’s human capital consulting business for Canada. “And while base pay is still the most important element of the employment deal, companies are continuing to offer innovative programs beyond compensation.”
These results are indicative of a steadily increasing trend, and for top-performing employees (7% of the workforce), salary increases will remain higher as companies strive to balance compensation planning budgets with retention of critical talent.