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Big companies are planning average pay raises of 3.2 per cent in 2013, according to human resources consultant Mercer.
The base increases are roughly the same as this year, the study found and only modestly higher than the 2.9 per cent in 2011. The trend is also in line with the United States.
But the increases offered to top-performing employees will be significantly higher. This year, according to Mercer data, top performers saw their base pay rise by 4.9 per cent compared to 2.9 per cent for average performers and just 0.1 per cent for the weakest performers. This differential between raises for average performers and top performers is likely to continue into 2013
The survey found that geography also influences average increases. Companies in western Canada are offering higher average increases,with energy companies leading the way. Areas offering the smallest increases include the public sector and not for profit organizations.
A related survey by the Hay Group in late August suggested that healthare workers will receive the smallest increases in the coming year – 1.3 per cent, followed by forestry, public sector and retail – all at 2.3 per cent.
Mercer consultant Iain Morris says base pay is still the most important element of the employment agreement, but companies are continuing to offer innovative programs beyond compensation..