The Trends in HR report from Morneau is out. A short summary from Pension and Benefits Monitor
is included below as well as the full report. This is a Canadian employer survey so can be seen as a rough benchmarking tool.
Employers in Canada are expecting salaries to rise by an average of 2.6 per cent in 2019, says Morneau Shepell’s annual survey of ‘Trends in Human Resources.’ This is consistent with the actual 2.6 per cent average increase in 2018. The national forecast for salary budget increases for 2019 includes expected salary freezes, with 4.6 per cent of respondents expecting a zero salary budget for 2019. “Employers remain relatively confident about compensation expectations in the coming year,” says Anand Parsan, its vice-president, compensation consulting. “Those expecting healthier financial performance in the coming year outpace those expecting worse performance by six to one. In the face of this optimism and a labour market with no slack, however, employers remain guarded about salary increases, perhaps reflecting anxiety over the possibility of more trade protectionism, rising interest rates, and a Canadian economy operating close to its capacity.” The expected 2.6 per cent increase is consistent with the current rate of inflation. In July, the Bank of Canada noted that consumer price index inflation is expected to rise to about 2.5 per cent, before settling back to two per cent by the second half of 2019.