New Year Promises New Salaries

This year, Canadians spent a lot of time worrying about the security of their jobs. Sadly, due to the recession, many lost their jobs to find that securing new employment was an extremely difficult task. Cutbacks and layoffs have been rampant throughout 2009 as the nation experienced a severe financial crisis along with the rest of the globe.

The Associated Press reported yesterday that a recent survey found nearly 70% of Canadian companies are concerned about losing their best staff because of these cutbacks and pay freezes. Many are hopeful that they will be hiring in the new year in an effort to remain competitive in the marketplace.

In what may seem an ironic twist, the survey conducted by the Towers Perrin consultancy firm, found that 55% of these companies plan on doling out bigger salaries to their top staff and 40% say that they will work towards improving their talent management programs.

This, of course, comes as good news to end a year where money has become harder and harder to come by for the Canadian worker.

In 2010, says the survey, there will thankfully be less companies planning to impose a pay freeze throughout their staff. In addition, only 11% claim that they have no plans to increase wages. In 2009, nearly half of the companies surveyed felt impelled to freeze their staff costs.

There is, in fact, more good news on the horizon for Canadian employees next year. The survey also revealed that companies are not planning as many job cuts in 2010. Only 10% of respondents reported that they have plans to release more staff.

It should be noted, however, that Canadians shouldn’t go spending a fortune on their holiday shopping in light of this positive news. While many companies plan on hiring and ridding themselves of pay freezes, the raises planned are not expected to be very significant. Canada, obviously, is still working its way through the recovery process.

The companies who do plan on increasing wages will only be doing so by about 2.5% – a full 1% less than a year before. Bonuses are also expected to decline. Says The Associated Press release: “More than half of the 143 companies responding said they plan lower or no bonuses for 2009.”