Canadian HR Reporter

November 3, 2014

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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Canadian HR RepoRteR november 3, 2014 2 news Recent stories posted on Check the website daily for quick news hits from across Canada and around the world. web O n t h e across canada Small business lagging, but has potential over next 5 years: Study Contributing 'greater than normal share' of hiring Less than one-half of workers have workplace retirement plan employees not maximizing employer-sponsored plans Hoskins says Ontario ready to deal with Ebola, but risk low Guidelines for front-line health workers being updated around The world Apple, Facebook will pay for female employees to freeze their eggs Full- and part-time employees will receive up to $20,000 Wal-Mart CEO vows to end minimum wage pay in future average hourly wage for staffers is US$12.92 White House, companies look for ways to hire long-term unemployed US$170 million in grants to help train unemployed people How social tools impact engagement Colleen Burns, influencer engagement manager at iBM, sat down with Canadian hr reporter TV to talk about how social technologies can boost engagement feaTured VIdeo slight slowing in West, rising turnover impact salary forecasts Increases of 2.79 to 3.7 per cent predicted in 3 surveys By Sarah DoBSon CanadI an employer s continue to have a "cautious and conservative outlook" when it comes to salary increases — de- spite pressures to retain and mo- tivate employees, according to a survey by Accompass (formerly Pal Benefits). Increases projected for 2015 sit at 2.79 per cent, in line with the 2.74 per cent increase projected last year, found the September survey of 401 organizations, with the majority based in Ontario, Al- berta and British Columbia. "I would really emphasize the words 'staying the course,'" said Steven Osiel, vice-president of total compensation at Accompass in Toronto. "(With) 2014 moving into 2015, neither seems to be a banner year nor a bad year — it's almost a moving forward. We're out of the recession, we know we're doing better but all the evidence isn't pointing to excitement yet in that — but you see little nuggets, nu- ances of movement that is going to take us there." ose nuances include salary freezes, which appear to be stabi- lizing at eight per cent, the same as was projected for 2014, and close to the nine per cent projected in 2013. And more companies are planning an increase of two per cent or more compared to last year — 43 per cent will be giving raises in the 2.6 to three per cent range, found the survey. "You see the confidence in terms of where the position is against market, there's more in- security. So more people think that they're at or below market competitiveness. at insecurity means they feel they have to pay more, so there's that sense of com- pensation or pay levels are becom- ing important again," he said. Two-thirds (64 per cent) of respondents believe their pay is on par with other organizations, found Accompass. "Although Canadian compa- nies are telling us that bench- marking and market position analysis are the top compensa- tion priority, it's interesting that the most important factor when finalizing the annual merit bud- get is actually internal budget constraints," said Osiel. But if the numbers are looked at a different way, these forecasts may not be having the expected impact. In working with the To- ronto Region Board of Trade, Accompass did year-over-year analysis of more than 200 actual positions — not market move- ment. And they found there has been no movement whatsoever, he said. "It looks like those employees who have stayed at organizations are getting increases between 2.5 and 3.5 (per cent), as per all the surveys, but because there has been some turnover in the mar- ket and some jobs that are now being refilled after all these years of recession and we're now mov- ing in the direction of fully filling up again, some of those positions are being hired at a lower rate. So those lower-rate jobs combined with those who have stayed meant it overall negated that overall 2.5, 2.8 per cent increase." If, for an example, an HR man- ager making $80,000 leaves a company, the person replacing her would not receive $82,000, as per the salary increase forecasts, but $80,000. "As there's more turnover, as there's more confidence moving forward in the Canadian econ- omy, the U.S. economy, new HR managers and all positions will be demanding more money again but, right now, the security of hav- ing a job is more important than the difference in pay," said Osiel. Western domination Canada's projected average sal- ary increase for 2015 is forecast at 3.16 per cent, according to a survey by the Wynford Group in Calgary. at compares to an ac- tual increase of 3.21 per cent for 2014. e survey's outlook is rosier than others, said Gail Evans, presi- dent of the Wynford Group. "We have a slightly different perspective to some of the other major comp companies because we sit in Alberta and Alberta, of course, has an oil and gas prac- tice," she said. "Our numbers are probably slightly higher because our perspective is from this centre of the earth." e east and west coasts are leading the way in Canada, with the Atlantic seeing increased ac- tivity in shipbuilding contracts and British Columbia's Kitimat re- gion expecting a boost in shipping terminals, said Evans. "The two coasts are the hot spots, other than Alberta. Sas- katchewan is moving along and there's still lots of action there but I think it's levelling out. ey were doing such a big catchup for so long, their rates are actually get- ting closer." Alberta is expected to see gains of 3.29 per cent and British Co- lumbia is predicting 3.18 per cent, while Saskatchewan is at 3.23 per cent, found the survey of more than 230 employers from May to July. e Atlantic is predicting 3.2 per cent followed by Manitoba at 3.17 per cent, Ontario at 3.14 per cent and Quebec at 2.94 per cent, found the Wynford Group. "Alberta is leading the charge… although there is some trepida- tion in some areas about the tar sands because of the gluts with the pipelines, so oil is now going out on trains," she said. "ere is the recognition that Alberta's oil industry or energy in- dustry is now the economic driver in Canada… Whenever there is activity here, there certainly is also spreading up the walls in other parts of the country, so that's a good thing." Broken down by industry, ener- gy is leading the way, with predic- tions of 3.78 per cent, followed by construction at 3.43 per cent, en- gineering/project and construc- tion management at 3.4 per cent, and engineering at 3.33 per cent. "ere's still some really, really heavy competition in anything to do with the oil industry, and the biggest employers are not the oil companies, it's those service sec- tor guys and construction guys," said Evans. Advanced technology, at 3.27 larGe > pg. 14 You are invited to a free HR Seminar Tel 416.603.0700 | 24 Hour 416.420.0738 | Fax 416.603.6035 | DATE: Thursday November 27, 2014; 7:30 – 9:30 a.m. (breakfast at 7:30 a.m.; program at 8:00 a.m.) VENUE: Mississauga Convention Centre 75 Derry Road West, Mississauga, ON L5W 1G3 COST: Complimentary RSVP: By Friday November 21, 2014 at presented by *** Law Society of Upper Canada CPD Credits: This seminar may be applied toward general CPD credits. *** HRPA CHRP designated members should inquire at for eligibility guidelines regarding this HReview Seminar. 2014's Hottest Employment and Labour Developments Is your organization prepared for 2015? 2014 was a busy year with important legislative amendments and the release of significant labour and employment decisions from courts, tribunals and labour arbitrators. Join us to learn how developments in the following areas could impact the way your organization does business in 2015: Ranked In Leading Firm CHAMBERS GLOBAL 2014 2013 RANKED 1. Labour Law • Store Closure Following Union Certification: Supreme Court of Canada finds against Wal-Mart. • Union Rights Follow Change of Location: Richtree Natural Markets before the Ontario Labour Relations Board. 2. Employment Law • Severance Pay: New, employee-friendly, test for determining eligibility. • Reasonable Notice: Trending higher and higher. • New Legislation: i. Marijuana laws create a buzz in the workplace. ii. New statutory leaves now in force. 3. Human Rights • Family Status: Federal Court clarified what has to be accommodated and how. • Religious Accommodation: What counts as religion; and practical ways to accommodate religious days off. • Internal Investigations: There's been a human rights complaint. When is an internal investigation not required?

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