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Normandin Beaudry

2016-2017 survey on salary increases

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There, in black and white

NB Bulletin Vol. 19 N. 16, September 2016

The annual Salary Increases Survey, conducted by Normandin Beaudry, reveals that Quebec salaries are expected to increase by 2.8% in 2017. Salary structures are expected to increase by an average of 1.8%.

As in 2016, the economic outlook remains uncertain for 2017 and the volatile environment brings organizations to remain cautious. With a first positive difference since 2012, the slightly higher increases granted in 2016 has reversed the negative trend of the last three years.

Small businesses are more generous

Once again this year, small businesses (less than 100 employees or with revenue less than $50M) are setting themselves apart from the market by forecasting salary increase budgets above the provincial average (between 2.8% and 3.0% on average). Large organizations (more than 500 employees or revenue over $100M) are cautious with below provincial average forecasts for 2017 (between 2.6% and 2.8% on average).

Back to an equilibrium between Quebec City and Montreal

After a shortfall in 2016, forecasts for the region of Quebec City are again similar to those of the Montreal region, where both regions are anticipating increases above the provincial average. 

  • Quebec City (projected for 2017: 2.9%, granted in 2016: 3.0%)
  • Montreal (projected for 2017: 3.0%, granted in 2016: 2.9%)

Differences among industry sectors

Some industry sectors set themselves apart with salary increase budget forecasts that are higher than the provincial average. These sectors include Durable Goods Manufacturing (3.4%), Educational Services (3.4%), Information Technology and Communications (3.2%), Professional, Scientific and Technical Services (3.2%) and Non Durable Goods Manufacturing (3.2%).

Conversely, some sectors are well below the provincial average. These sectors include Information Culture and Entertainment industry (2.3%), Foundations, Community and Health Care Assistance (2.3%) and the Municipal Sector (2.2%). The latter sector was among the highest forecasts for 2016 with 2.9% increase, however, only 2.5% was granted and the outlook is now among the lowest in the coming year.

Salary increase forecasts for private sector organizations remain higher (2.9%) than those for public and parapublic organizations (2.5%).

Canadian provinces are below the Quebec average 

Quebec organizations with nationwide activities (n=41) forecast slightly higher increases (3.0%) in Quebec than the provincial average of 2.8%. Although, for the other provinces, the forecasts range between 2.5% and 2.6% and are lower than the Quebec provincial average.

  • 54% of organizations granted equivalent salary increase budgets across the provinces in 2016, a decrease of 14% compared to the results of the previous year.
  • 85% of organizations granted the same salary structure increase across the provinces in 2016, and 94% expect to do the same in 2017.

About the survey

The sixth edition of the Salary Increase Survey was conducted in the summer of 2016. A total of 175 organizations, including 41 with nation-wide operations, representing more than 965 000 employees completed this survey, allowing us to build a reliable database. The data collected was analyzed by Normandin Beaudry's compensation specialists to identify market trends and present salary forecasts for 2017 that reflect the economic conditions specific to Quebec organisations.

Get the full report of this survey on normandin-beaudry.ca

For more information about the survey, contact:

Philip Longpré, B. Sc. Act., CEBS, CHRP
Senior Consultant, Compensation
plongpre@normandin-beaudry.ca
514 285-1122 ext. 240

Anna Potvin, M.Sc., CHRP
Consultant, Compensation
apotvin@normandin-beaudry.ca
514 285-1122 ext. 624
 

 

Please feel free to contact us for additional information.

514.285.1122
 
630, René-Lévesque Blvd. West, 30th floor
Montreal, Quebec, H3B 1S6