Sherri Coxon
Executive HR Consultant
Business Sherpa Group
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Salary survey data obtained from the following
sources:
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AON
Conference Board of Canada
Hay Group
Mercer
Morneau Shepell
Tech-Edge
Towers-Watson
WorldatWork
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Data provided for the following “cuts”:
Executive
Management
Professional
Office / Clerical / Technician
Trades / Production / Service
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Data presented as follows:
Base Salary increases (%)
Salary Structure increases (%)
2013 actual adjustments and 2014 forecasted adjustments
 National
 Local perspective where available
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Definitions
 Base Salary % = the total amount of all
increases combined
 Merit + general salary increases
 Salary structure % = the amount by which the
established job rate is adjusted to reflect
economic changes in the defined marketplace
 Job rate defined as mid-point, control point, 100% or
range maximum, dependent on structure
2013 Actual Increases (National)
Low – High Ranges
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Base Salary %
Structure (%)
Executive
2.5% – 3.0%
1.5% – 2.4%
Management
2.6% – 3.1%
1.6% – 2.3%
Professional
2.6% – 2.9%
1.6% – 2.3%
Office/Clerical/Technician
2.6% – 3.1%
1.6% – 2.3%
Trades/Production/Service
2.4% – 2.8%
1.7% – 2.4%
The base salary ranges are lower in almost every situation as compared to
2012, by as much as 0.5% in some situations
Salary structures similar to 2012
Consistent range movement across all job types
Ranges for “local” (Ontario or Ottawa) data are broader than those for the
National data
2014 Forecasted Increases (National)
Low – High Ranges
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Base Salary %
Structure (%)
Executive
2.5% – 3.0%
1.5% – 2.4%
Management
2.6% – 3.1%
1.6% – 2.3%
Professional
2.6% – 3.1%
1.7% – 2.2%
Office/Clerical/Technician
2.6% – 3.1%
1.6% – 2.2%
Trades/Production/Service
2.4% – 2.9%
1.6% – 2.2%
2014 base salary projections indicate a high level of consistency
between sources with very little change from the 2013 Projections
Structure adjustments are consistent to actuals for 2013
Ranges for “local” (Ontario or Ottawa) data are broader than those for
the National data
Greater decline in base salaries than in salary structures
As
organizations struggle with balancing limited
budgets and the need to retain critical talent, they are
segmenting their workforce and concentrating rewards on
key and top employees - the gap between highperforming employees and those in the lower performing
categories is widening significantly.
According
to Mercer, in 2013:
 Middle performers (60% of employees) received a 2.8%
increase
 Highest performers (6% of employees) received a 5.1% salary
boost
 Overview
 A growing team of HR professionals who provide full spectrum HR services
to small and medium sized companies
 Flexible and fully scalable HR function for companies where no HR team
exists; and where there is an HR team in place, we provide additional
expertise and bench-strength for peak work periods or special projects
 Team includes HR Executives, HR business partners and generalists, talent
acquisition experts, compensation specialists, and training and
development professionals
 Our clients include high tech, commercial businesses, retail,
manufacturing, construction, finance, professional services, not-for-profit
and NGOs, and owner-operated businesses in Canada, US and
internationally
 Our goal is to help organizations realize their full potential by creating and
delivering the very best and most relevant HR practices that add the
greatest value possible
 Our clients have full control over the level and duration of the engagement
by leveraging scalable resourcing that address near term priorities and
long term strategies
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Despite weak points in the economy, companies
need to continue to offer pay increases to attract
and retain employees
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Only 2% of organizations are projecting wage freezes as
compared to 3.6% for 2013 (Towers Perrin)
Key Challenges for our Clients:
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Attraction and Retention of top talent
Being creative with a limited budget
Managing internal equity Issues
Recognizing top performers
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Recognizing that money alone doesn’t drive employee engagement,
we work with our clients to develop creative programs that
employees value
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Variable comp instead of, or in addition to, salary increases
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Stock options
Additional time off
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Allows company to reward top performers
Self-funded Bonus Plan for ‘Not for Profits’ based on stretch objectives
1 week vacation (2% of salary), ‘x’ number of Personal days
Flex time or ability to work from home (1+ day/week)
Attendance at conferences or training programs
Provide key employees with an opportunity to work on a special “high
profile” project or take on a new role (even if a lateral move)
Opportunity to work closely with management on business strategy and to
be involved in key decisions
Purchase a meaningful gift for key employees
Employers recognize that many of their employees are being
paid below market, creating challenges for the business:
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Increased Turnover Costs
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Increased work load for others, potential lost revenue, recruitment costs for
replacement, training costs, ramp-up time, impacts on employee morale, etc.)
Compression Issues
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To compete for talent, employers are hiring new employees at market rate while
long-term valued and committed employees remain below market
How to address this situation?
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Be conscious when hiring outside talent – is there an opportunity to promote
from within (succession planning)
Develop targeted ‘Pay for Performance’ program
Develop a budget for equity adjustments – find a way to fund it
Be more intentional about your Employee Engagement Strategy
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Get connected with the “at risk” employees to understand and address other factors
that could help off-set the cash compensation challenge
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