Salary Increases Ring in Next Year's Wish Lists

Editorial By BUSINESS EDGE MAGAZINE
December 13, 2001

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Optimism evident in study by Calgary-based Wynford Group

Technology companies are looking to the new year with a hint of optimism, with many considering salary hikes for their staff next year, says a new study.

“Organizations are being cautious, but are still optimistic about growth for 2002,” said Gail Evans, president of The Wynford Group.

The Calgary-based company has released a fall update to its national compensation survey that shows many technology firms are focused on growing their businesses in the new year.

The 2001 Information and Advanced Technology Survey quizzed more than 130 organizations last spring and summer, while the fall update was conducted in November.

Its findings include:

• 85 per cent of respondents view a positive or unchanged economic environment for their organization, with 40 per cent expecting growth;
• The majority of technology organizations are planning salary increases this year, but at a slightly lower rate than previously projected. Evans predicts they will be in the 3.5-4 per cent range;
• 87 per cent of respondents said they were implementing or considering implementing salary increases this year, and 11 per cent indicating they would not be doing so;
• 35 per cent of those polled indicated they were planning an increase in staff numbers, about 18 per cent were planning a decrease and 44 per cent predicted no change in numbers. Of respondents reporting an increase in employee numbers, the average was 19 per cent, and of those reporting a decrease, the average was only eight per cent.

Companies also identified their top business priorities as growing the business, attracting and retaining key personnel, focusing on the business strategy, cost controls and customer service.

“The results of this survey and other feedback from clients, reinforces that organizations recognize the need to pay competitively, and retain core talent even in these uncertain times,” said Evans.

The Wynford Group is based in Calgary with affiliates in Vancouver, Edmonton, Toronto and California.