Sherri CoxonExecutive HR Consultant

Business Sherpa Group

Salary survey data obtained from the following sources:

AON Conference Board of Canada Hay Group Mercer Morneau Shepell Tech-Edge Towers-Watson WorldatWork

Data provided for the following “cuts”:ExecutiveManagementProfessional Office / Clerical / TechnicianTrades / Production / Service

Data presented as follows:Base Salary increases (%)Salary Structure increases (%)2013 actual adjustments and 2014 forecasted adjustments

National Local perspective where available

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

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

Low – High Ranges

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%

2013 Actual Increases (National)

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

Low – High Ranges

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 Forecasted Increases (National)

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 high-performing 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

Despite weak points in the economy, companies need to continue to offer pay increases to attract and retain employees Only 2% of organizations are projecting wage freezes as

compared to 3.6% for 2013 (Towers Perrin)

Key Challenges for our Clients: Attraction and Retention of top talent Being creative with a limited budget Managing internal equity Issues Recognizing top performers

Recognizing that money alone doesn’t drive employee engagement, we work with our clients to develop creative programs that employees value Variable comp instead of, or in addition to, salary increases

Allows company to reward top performers Self-funded Bonus Plan for ‘Not for Profits’ based on stretch objectives

Stock options Additional time off

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:

Increased Turnover Costs Increased work load for others, potential lost revenue, recruitment costs for

replacement, training costs, ramp-up time, impacts on employee morale, etc.) Compression Issues

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? 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

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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