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Many areas across Canada have returned to their patterns of rapid wage growth in recent quarters. Are you on top of the trends? As you consider employee raises and refine your compensation strategy, it's imperative to have reliable Canada-specific data to inform your decisions when building a solid compensation foundation.
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Canadian Compensation Trends & Pay
Practices
Finn AndersenSales ManagerPayScale, Inc.
Karaka LesliePartnership Manager PayScale, Inc.
www.payscale.com
14,000 Positions
2500 Customers
40 Million Salary Profiles
250 Compensable Factors
11 Countries
Agenda
o5 Compensation Best Practices & Trends
o Immediate Action
o Special! Trends Data For You
oQ & A
• Surveyed over 550 respondents in Canada
• Themes:– Financial Performance– Wage Growth– Hiring Practices– Retention Concerns– Managing Increases
• Company size breakdown:– Small: < 100 employees - 48%– Medium: 100 - 1,000 employees - 36%– Large: >1,000 employees – 16%
65% of Canadian companies expected their financial performance to improve in 2013
General Market Trends
Five
Compensation
Best Practices
1) Understand Your Labor Market
2) Understand Your Jobs
3) Create a Competitive Strategy
4) Build a Structure
5) Pay for Performance
Understand Your Labor Market
Understand Your Labor Market
•Who do you compete with?
• Size, Location, Revenue, Industry
•Who can you compete with?
Understand Your Labor Market
Understand Your Jobs
Understanding Your Jobs•Work Gets More Specialized
•Hot Skills in Canada
•Not All Jobs Are Created Equal
•Hot Jobs in Canada
Hot Skills in CanadaTechRuby on RailsSuretrak (Primavera)Software Development LifecycleCloud ComputingPythonMobile ComputingInteraction Design O&G/Engineering
Well Production EngineeringSix Sigma Green BeltSCADAOil and Gas Formation EvaluationChemical Process EngineeringShielded Metal Arc Welding (SMAW)
OtherMergers and AcquisitionsAvionicsFinancial ModelingMaterial ScienceLoan UnderwritingSAP Enterprise Resource Planning
With Skill
Without Skill
Skills Can Play a Role
Hot Jobs in Canada
TechnologyWeb Developer - 7.09%Programmer Analyst
OtherMillwright - 4.1%Executive Chef - 4%Insurance UnderwriterRetail Store ManagerConstruction SuperintendentLogistics Coordinator
Finance/AdminAccounts Receivable Clerk - 5.38%Administrative AssistantOffice ClerkStaff AccountantReceptionist
Sales/OperationsRegional Sales Manager - 5.25%National/Strategic Accounts Manager - 5.08%Quality Assurance Manager - 4.21%Warehouse Manager
Positions with Largest Year over Year Increases
Understanding Jobs In Markets
“The market” changes for each job
2011 Q1
2011 Q2
2011 Q3
2011 Q4
2012 Q1
2012 Q2
2012 Q3
2012 Q4
2013 Q1
2013 Q2
2013 Q3
0.9000
0.9500
1.0000
1.0500
1.1000
1.1500
Web Developer Median PayAcross Time for Canada
Web Developer Canada
2011 Q1
2011 Q2
2011 Q3
2011 Q4
2012 Q1
2012 Q2
2012 Q3
2012 Q4
2013 Q1
2013 Q2
2013 Q3
0.9000
0.9200
0.9400
0.9600
0.9800
1.0000
1.0200
1.0400
1.0600
1.0800
1.1000
Electrical Engineer Median PayAcross Time for Canada
Electrical Engineer Canada
Create a Competitive Strategy
Competitive Strategy• Who is your market?
•How competitive do you want to be?
•What do you want to reward?
Why Have a Comp Strategy?We asked thousands of HR and business leaders* about their top challenges in compensation. They said:
1. Retain. They don’t want to risk losing employees by underpaying them, or losing money by overpaying them
2. Attract. To compete for talent, job offers must match the market and the unique factors driving pay for their jobs.
3. Motivate. Drive performance with strategies that reward top performers while aligning with company goals.
4. Confidence. Having the science to back up decisions and conversations with executives and employees.
*http://www.payscale.com/hr/compensation-practices-survey
Competitive Strategy
Not all individuals, process, functions and business units have the same impact on results
We need to prioritize jobs, key employees and business units and then allocate the greatest portion of its resources to those high priority areas.
Competitive Strategy• Talk with senior leadership
• Vary strategy by department
• Base your decisions on key roles
Build a Structure
Advantages of Pay Structures
Provide alignment to business strategy
Clarify relative worth of the position internally & externally
Ensure fair pay (legally defensible)
Define a pay range for a position
Create clear career paths
Room to reward your employees based on performance, tenure, etc.
Build a Structure• Let the structure guide your business forward
• Keep it current
•Decide what’s important for you
Pay for Performance
Performance
Top people concerns among senior business executives are:oCreating a high-performance culture o Leadership developmentoTalent ManagementoTraining
Market Trend:Ongoing Shift Toward P4P
Source: Hewitt Survey – U.S. Salary Increases 2009/2010 and Impact on Org Spend for 2010
When crafting next years budget vs. this year the use of Across the board increases down by 50%Use of Variable Pay has increased 300%
Merit Matrix
Immediate Action
Elementary• Know your jobs
• Have an understanding of the market
Intermediate• Discuss a compensation strategy with leadership
• Know what you want to reward and what you value
• Build guidelines that reflect a compensation strategy that works for your business
Advanced• Find new and creative ways to incorporate performance pay
• Know how your pay practices stack up against your exact competition for talent
• Communicate you pay strategy with management
• Develop a strong compensation structure
Immediate Action
CHRP worth more!
http://resources.payscale.com/hr-The-Value-of-a-CHRP-Whitepaper.html
Faster Job Progression
http://resources.payscale.com/hr-The-Value-of-a-CHRP-Whitepaper.html
Special Offer for
Canadian HR Professionals
PayScale Delivers Where Other Compensation Providers Fall ShortPayScale leads the world in compensation knowledge with the freshest and most detailed data from over 36 million salary profiles. More than 2500 organizations use PayScale’s software and intelligence to get the greatest return on their talent. Smart businesses use PayScale Insight to recruit, retain and motivate their people.
Visit our blog: www.payscale.com/compensation-todayJoin our Group on LinkedIN: Compensation Today: HR Best Practices
Finn AndersenSales ManagerPayScale, Inc.
Karaka LesliePartnership Manager PayScale, Inc.
www.payscale.com
