Salary forecasts for 2007: workers expect a 4% increase, employers will agree to 3.3%

Quebec workers are optimistic about salary increases for the coming year. According to a CROP survey carried out for the Ordre des CRHA et des CRIA du Québec (Ordre des conseillers en ressources humaines agréés), they expect an increase of 4% next year. However, a study conducted among employers in Quebec and elsewhere in Canada by nine leading compensation consulting firms reveals that employers would be prepared to agree to 3.3% in 2007.

These results were announced this morning at the Ordre's conference on compensation, Rendez-vous de la rémunération.

Workers' expectations

At 4%, Quebec workers' expectations are more optimistic this year. In 2006, they anticipated a 3.1% increase and received 3.4%.

Of those interviewed, 25% said their salary hadn't increased in 2006 and 15% don't expect any change in 2007.

Salary not a priority for workers

The CROP poll also indicated that only one worker out of five (20%) considered salary to be one of the most important aspects of his or her job. Respondents were asked to rank nine aspects in all.

At 20%, salary came in sixth, trailing work/life balance (which ranked first for 36% of respondents), the possibility of fulfilling their creative potential (33%), autonomy (27%), employer recognition (24%) and job security (21%), but ahead of potential career advancement (15%), benefits (13%) and the possibility of working at home (5%).

Most respondents (58%) disagreed with the statement, “I consider work as a source of income, not a place to get personal satisfaction.”

“These results speak for themselves. We often rely on financial incentives when we're looking for a way to motivate people and create employee loyalty. Of course salary can be an attraction, but if employees aren't happy, if they don't share the company's values, they won't stay, even if it means accepting lower pay with another employer,” explained Alain Desgagné, CIRC, President of the board of the Ordre.

As for employers...

A study conducted by nine compensation consulting firms, the results of which were announced this morning, shows that Quebec employers would be prepared to consider an increase of 3.3%.

These forecasts are the highest in five years and continue to exceed the consumer price index. Furthermore, Quebec employer forecasts are slightly lower than the 3.5% anticipated for Canada as a whole.

“This difference is likely due to the fact that data from the West raises the Canadian average. The Western provinces top the list with an average anticipated increase of 3.8% and it's not hard to guess why,” concluded Mr. Desgagné.

To learn more!

Download the results of the CROP survey