(Pixabay)

Employers to raise salaries 2.6% on average next year: report

Firm points to factors such possibility of more trade protectionism, rising interest rates

Canadian employers expect to give staff a 2.6-per-cent raise on average next year, a new survey suggests.

Morneau Shepell, a human resource firm based in Toronto, released a report on Tuesday saying the anticipated salary bump is consistent both with last year’s average increase of 2.6 per cent, as well as with inflation.

Another 4.6 per cent of employers said they do not plan to increase staff pay.

“Employers remain guarded about salary increases, perhaps reflecting anxiety over the possibility of more trade protectionism, rising interest rates and a Canadian economy operating close to its capacity,” said Anand Parsan, vice president of compensation consulting.

B.C. and Alberta business owners expect a slightly higher than average raise, at 2.8 per cent and 2.7 per cent respectively.

Employees working in real estate, rentals and leasing can anticipate a 3.8-per-cent raise on average; staff in professional, scientific, technical and educational services can look forward to 3.0 per cent; and people working in public administration can await 2.8 per cent.

Those industries, the report noted, might be catching up after years of less than average growth.

Workers in information and cultural industries, health care, social assistance, arts, entertainment, and recreation might not be so lucky, with employers foreseeing raises as low as 1.5 per cent.

With an aging labour force, the report said employers offering lower raises need to try other methods to keep and attract employees.

“With limited funds to spend on salary increases, employers need to take a step back and look at the entire picture,” said Parsan.

“Intangible items such as flexible work arrangements, health and wellness, coaching and mentoring, learning and advancement opportunities and special recognition programs might be the edge employers need in the war for talent.”

Money aside, employers were looking to address emerging issues like the legalization of marijuana on Oct. 17 and the #MeToo movement.

“There are many misconceptions about cannabis that lead to an underestimation of the risk to personal health and well-being in certain situations,” said Paula Allen, vice president of research and integrative solutions.

“Managers need to be trained effectively. As well, employees need to be educated.”

The survey suggests 84 per cent of employers already have zero tolerance policies to address sexual harassment at work, and 25 per cent were planning to bring in new processes in the next year and a half.


@katslepian

katya.slepian@bpdigital.ca

Like us on Facebook and follow us on Twitter.

Just Posted

CSRD wants immediate Provincial action to fund Newsome Creek study

Erosion along the creek is causing hazardous situation for residents

Revelstoke couple convert 9/11 ambulance into a traveling home

They plan to drive it to Mexico and beyond

Avalanche Canada in desperate need of funding

The organisation provides avalanche forecasting for an area larger than the United Kingdom

CSRD wants immediate Provincial action to fund Newsome Creek study

Erosion along the creek is causing hazardous situation for residents

REPLAY: B.C’s best video this week

In case you missed it, here’s a look at the replay-worth highlights from this week across the province

B.C. asking for tips on ‘dirty money’ in horse racing, real estate, luxury cars

Action follows a Peter German report on money laundering in B.C. casinos

Canadian dead more than a week after plane crash in Guyana: Global Affairs

Global Affairs said it couldn’t provide further details on the identity of the Canadian citizen

Children between 6 and 9 eligible for $1,200 RESP grant from province

BC Ministry of Education is reminding residents to apply before the deadline

Victoria spent $30,000 to remove John A. Macdonald statue

Contentious decision sparked controversy, apology from mayor

South region forestry workers nearly in legal strike position

Talks broke down between USW and IFLRA, resulting in booking out of provincial mediator

Privacy concerns over credit card use for legal online pot purchases

Worries follow privacy breaches at some Canadian cannabis retailers

NEB approves operating pressure increase to repaired Enbridge pipeline

The pipeline burst outside of Prince George on Oct. 9, now operating at 85 per cent

B.C. VIEWS: Setting speed limits in a post-fact political environment

Media prefer ‘speed kills’ narrative, even when it fails to appear

Most Read