Salary increases in Canada are trending lower, according to a new study by Mercer, the consulting company.
It’s predicting increases of 2.6 per cent in 2017, down from 2.8 this year, and 3 per cent last year.
Continuing economic uncertainty and anticipated salary freezes by some companies are getting the blame.
“These are some of the lowest overall salary increase projections we’ve seen since our survey began more than 20 years ago, reflecting ongoing concerns among employers about the health of the economy,” says Gordon Frost, market business leader for Mercer’s Canada Talent business in a release.
Frost says this is also the first time the survey found survey found the energy sector projecting salary increases below the other sectors.
He says this means business leaders will have to get more strategic in how they distribute their limited funds to attract and keep talent.
“Those employers who can pay above the average for performance will enjoy a competitive advantage over those that cannot,” says Frost.
The annual survey includes data from nearly 500 organizations across Canada.