Workers more optimistic than employers about salary increases for 2008

Workers in Quebec appear to be more optimistic than their employers about salary increases for the coming year. These are the findings of a CROP-Ordre des conseillers en ressources humaines agréés survey of Quebec workers and a survey of employers conducted by eight prestigious compensation consulting firms.

Workers expect a 3.9% increase in 2008
According to the CROP-Ordre des conseillers en ressources humaines agréés survey, Quebec workers expect an average 3.9% increase in 2008. When broken down by gender, this percentage climbs to 4.4% for men, compared to only 3.3% for women.

“Women’s more pessimistic expectations seem closer to reality. In the same survey, women reported a 2.8% increase in 2007, versus 4% for their male co-workers. These figures show that despite the progress made, there’s still some way to go before men and women achieve parity in the workplace. And that’s true for both their position in the organizational hierarchy and overall working conditions,” commented Alain Desgagné, CIRC and chair of the Ordre des conseillers en ressources humaines agréés board.

The survey also revealed that 13% of respondents don’t expect any change next year, while 10% hope for an increase of 10% or more.

Quebec employers prepared to consider an increase of 3.1%
In a study conducted for the Order by eight compensation consulting firms, Quebec employers said they would be prepared to agree to a 3.1% increase next year, a figure somewhat lower than the Canadian average of 3.5%.

In Quebec, technical and administrative employees in the IT and media industries are likely to come out on top next year with a 3.7% increase, while unionized hourly rate workers in all sectors can expect to see the lowest increase at only 2.7%.

Work: primarily a source of personal satisfaction
According to the CROP-Ordre des conseillers en ressources humaines agréés survey, some seven out of ten workers (68%) view their workplace primarily as a source of personal satisfaction rather than a source of income.

What’s more, when asked what they considered to be the two most important aspects of their job, the opportunity to achieve professional/personal life balance topped the list at 34%. Pay and the possibility of using their creative potential tied for second place at 30%, followed by autonomy and recognition from their employer at 25% and 21% respectively.

Nonetheless, when asked to rank their job expectations on a scale of one to ten, respondents gave salary a rating of 7.9.

“Obviously salary remains important. But the survey’s findings show that above and beyond compensation, workers are looking for a workplace that will allow them to maintain a healthy balance between their professional and personal lives, use their skills and be recognized by their employer,” added Mr. Desgagné.

Highlights

Salary increases in 2007 and expected increases in 2008 – Findings of the CROP-Ordre des conseillers en ressources humaines agréés survey

Average increases (in %)

Gender Expected increasein 2008 Increase receivedin 2007
All workers 3.9% 3.4%
Men 4.4% 4.0%
Women 3.3% 2.8%

By % category

Categories - % increase Expected increase in 2008 -
% of workers
Increase received in 2007 -
% of workers
None 13% 24%
Less than 1% 2% 3%
1 to 2.9% 30% 25%
3 to 4.9% 16% 13%
5 to 9.9% 13% 12%
10% or more 10% 10%
Don’t know / No answer 15% 13%

Projected salary increases – Findings of a survey of Quebec employers conducted by eight compensation consulting firms for Ordre des conseillers en ressources humaines agréés

Percentage increase projected by employers

Industry sector Senior
executives
Managers
and
professionals
Technical and
administrative
employees
Unionized
hourly rate
employees
Non-unionized
hourly rate
employees
Industry
average
Manufacturing (durable and non-durable goods) 3.4% 3.3% 3.1% 2.4% 2.6% 2.94%
Retail sales, wholesale and distribution 3.3% 3.1% 3.1% 2.6% 2.8% 3.01%
Financial institutions, insurance and real estate 3.5% 3.4% 3.4% 3.0% 3.3% 3.31%
Information technology and media 3.3% 3.3% 3.7% N/A. 3.3% 3.43%
Other private sectors 3.4% 3.4% 3.2% 2.0% 3.5% 3.12%
Public/parapublic/
municipal sector
2.9% 2.9% 3.0% 3.3% N/A. 3.04%
Average by employee category 3.31% 3.25% 3.26% 2.67% 3.10%

Legend:
 Highest increases
 Lowest increases

Note:
This survey presents the salary projections of employers surveyed by the following compensation firms: Saucier Consulting, Hay Group, Morneau Sobeco, Aon Consulting, Mercer, Watson Wyatt, Hewitt and Normandin Beaudry, and Towers Perrin.

To learn more…
Download the results of the CROP survey (In French only).