Employees hoping for large across-the-board raises in 2012 will be disappointed, as Canadian employers are projecting an average wage increase of 3.1%, according to the Mercer Compensation Planning Survey.
Base pay is considered the most important element of total compensation for most employees, according to a previous Mercer survey, but only 53% said they were happy with what they earned.
In 2011, the average pay increase was 3%, up from 2.7% in 2010 and 2% in 2009.
Employers may want to consider above average increases for their best employees, as 58% of workers surveyed said they had “checked out” from work and one in three are considering leaving their employer.
“Retaining key talent will be a key priority for employers as the economy recovers. Top talent are the first to find new opportunities elsewhere,” says Iain Morris, Human Capital business leader for Mercer in Canada. “Employers with modest budgets for salary and promotional increases may be left with few tools to recognize and retain key people.”
The survey included responses from 675 employers in Canada, representing over one million non-union employees.