In keeping with the gloomier employment picture this year, a new report suggests pay raises among Canadian workers won’t be quite as big as some had planned for.
A survey of companies released Tuesday suggests intentions for increases to annual base salaries have edged “down slightly” compared to the same survey taken last summer.
Annual compensation is expected to grow 2.7 per cent for the average worker this year, according to the Conference Board of Canada, down two tenths of a percentage point versus the previous survey.
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That’s not overly surprising given the more-than-slight drop in oil prices, a development that’s rippling across the economy.
“Against the backdrop of falling oil prices and economic uncertainty, many organizations have lowered their projections for 2015 salary increases,” the Conference Board said.
‘Many organizations are waiting to see how the economy fares before making any final decisions’
Less than half
Less than half of Canadian companies in the survey had finalized employee compensation plans.
As of early January, when the survey was completed, 43 per cent of company officials who responded said they had salary plans approved. Just over a quarter were waiting for approval and 31 per cent said they were still in the planning stage.
“Many organizations are waiting to see how the economy fares before making any final decisions,” the report from the Ottawa-based non-profit research agency said.
Biggest gains
Despite the downturn in oil prices, pay gains will again be strongest for energy sector workers. Even amid layoffs, compensation plans among oil-patch companies still call for an average increase in the order of 3.7 per cent this year, down from 3.9 per cent in the summer survey.
But the report noted “this downward trend is anticipated to continue for this industry.” Only a quarter of energy firms surveyed had their 2015 compensation plans approved at the time of the survey.
Telecom workers such as call centre staff as well as cable and Internet installation technicians were the only group to register higher anticipated pay compared to last summer. Pay in the sector is expected to rise 2.4 per cent, up a tenth of a point.
“With the exception of the communications and telecommunications sector, which is projecting a slightly higher than it was in the summer, all industries are at or below their summer projections.”
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