Canadian HR Reporter

November 2018 CAN

Canadian HR Reporter is the national journal of human resource management. It features the latest workplace news, HR best practices, employment law commentary and tools and tips for employers to get the most out of their workforce.

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PM40065782 RO9496 THE NATIONAL JOURNAL OF HUMAN RESOURCE MANAGEMENT November 2018 PAY RAISES EXPECTED TO STAY STEADY FOR 2019 page 21 USMCA agreement raises hopes Deal could ease anxiety in tight labour market: Expert page 2 Leave of absence decision earns reprimand Oil and gas company knew senior manager's job was at risk page 5 Figuring out pharmacare Exclusive roundtable looks at challenges, solutions to potential national program page 10 Average salary increases will remain below 'watershed' three per cent mark: Forecasts BY MARCEL VANDER WIER Thousands of CBC employees suffered a major data breach earlier this year. Credit: Google Street View Tackling talent shortages 5 CEOs open up about how they're coping with lack of skilled talent needed to grow W hen it comes to salary increases across Canada, more of the same can be expected come 2019, according to forecast surveys from several HR consulting fi rms, with bumps ex- pected to range between 2.5 and 2.8 per cent. An average of 2.6 per cent seems to be the consen- sus, and is backed up by the results of a Morneau She- pell survey of 356 organizations. at would match the actual increase in salaries experienced in 2018 and includes 4.6 per cent of employers that are expecting to freeze salaries, said Anand Parsons, vice-president of compensation con- sulting at the Toronto company. Pay raises continue to be in line with infl ation, which is expected to be 2.5 per cent, he said. " e number has been pretty consistent in terms of the salary increase in and around that 2.6, 2.7 range," said Parsons. "But what's quite interesting is that — given that there's a tight labour market in Canada and unemployment is low — we're still not seeing those high increases in salaries. You would think that it would be higher." Accompass is also predicting a 2.6 per cent in- crease, according to Anne Peiris, vice-president of compensation in Toronto. "While it is less than three per cent, which seems to be the benchmark… it is slightly higher than what was forecasted last year," she said, citing data from 143 organizations compiled in the company's Salary Budget Report. "Last year, while people predicted a 2.5 per cent increase, they actually spent 2.7 per cent. If I look at those same numbers for the previous year… they pre- dicted 2.5 per cent, but they spent 2.6. Even though it's a very small diff erence between last year and this year, when you're dealing with a small budget to begin with, even a 0.1 per cent diff erence can be a storyteller." According to Aon's Canada Salary Planning Report of data from 365 companies, salary increases will be slightly higher at 2.8 per cent in Canada — a hair more than 2018's actual rise of 2.7 per cent. Of note, Aon's data indicates just 0.3 per cent of em- ployers will implement a salary freeze, said Suzanne omson, senior consultant, talent, rewards and per- formance in Toronto. " e salary upside might be limited, but so is the downside, since fewer organizations expect freezes this year," she said. POLITICAL > pg. 20 LEGISLATION PAYROLL NEWS, AND TIPS Credit: LeonWang (Shutterstock) British Columbia is expected to see the highest salary increases in 2019, with an average of 2.8 per cent, according to one survey. Rules tighten for reporting data breaches If 'real risk of signifi cant harm, ' intrusions must be reported BY MELISSA CAMPEAU AS of Nov. 1, the Personal Infor- mation and Electronic Documents Act (PIPEDA) will require feder- ally regulated organizations to provide notifi cations when there's reason to believe a breach of an employee's personal data creates a real risk of signifi cant harm to the individual. e breach will need be report- ed to the privacy commissioner of Canada and the employer in ques- tion will have to notify aff ected in- dividuals and other organizations if they can help reduce the risk of harm. Companies failing to com- ply with the new regulations could face fi nes up to $100,000. "Breach reporting requirements of PIPEDA were actually passed in June of 2015 with the Privacy Act, but the reporting and no- tifi cation provisions don't come into force until Nov. 1 because the government was formulating a set of regulations to accompany the change in the law," said Wendy Wagner, partner at Gowling's Ot- tawa offi ce, and leader of the fi rm's privacy and data protection group. Lost laptops, hackers Breaches are defi ned in PIPEDA as "the loss of, unauthorized access to or unauthorized disclosure of per- sonal information resulting from a breach of an organization's secu- rity safeguards… or from a failure to establish those safeguards." In the workplace, breaches can happen in many ways. "You hear so much about cyber- security and hacking and sophis- ticated criminal intrusion into IT TRAINING > pg. 8 Oil and gas company knew senior manager's job was at risk

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