How much are you budgeting for salary increase in 2015?
Lower inflation is a significant factor and is dragging down the salary budgets for many Canadian organizations, according to multiple surveys looking at salary increases on tap for 2015. Current forecasts put annual salary increases in the 2.6% – 3.0% range. In an era of reduced inflation and interest rates from where we were a year ago, you can’t argue for much more than 2.6%. Organizations have to consider the affordability of the increases and the increase of the cost of goods, inflation and Canada’s overall macro-productivity metric, which is always lower than the U.S.
As quoted by Karl Abound, Director of Canadian Rewards Practice at the Hay Group in Toronto
Source: Canadian HR Reporter, September 24, 2014, article written by Sarah Dobson