HR Professional - December 2007/January 2008 - (Page 16)

UPFRONT R E T I R E M E N T | S A L A RY I N C R E A S E S Compensation R E G I O N A L D I S PA R I T I E S I N S A L A R Y E X P E C TAT I O N S Expecting a raise this year? Your increase depends a lot on where you live, according to a recent compensation survey by Morneau Sobeco. Not surprisingly, the highest salary increase expectations are reported in Alberta, with average expected increases ranging from 4.3 per cent for operations and production staff, to 5.6 per cent for executives. Salary increases in Western Canada are being driven by a demand for staff. Salary increase expectations were lowest in Central Canada, ranging from three per cent for operations staff to 3.3 per cent for executives. Morneau Sobeco cited less demand for staff and lower inflation for these modest increases. In terms of industries, mining and energy companies reported the highest average expected increases at 4.3 per cent (minus promotional increases), while the forest products industries reported the lowest—1.7 per cent for operations and 2.1 per cent for executives. Canadian employers have budgeted an average annual salary increase of 3.7 per cent, including provisions for promotional increases. NEWS 34% QUIT WORK ENTIRELY 24% CHANGE FIELDS/ WORK AT SOMETHING NEW 14% WORK AS A CONSULTANT 14% WORK FEWER HOURS FOR THE SAME COMPANY 6% DON’T KNOW 3% OTHER 2% TAKE A PART-TIME JOB 2% CONTINUE TO WORK/NOT PLAN TO RETIRE 1% VOLUNTEER Postponing retirement Notably, 24 per cent would continue working, but try something new. “Many people, once they invested much of their careers at a firm or in an industry, see the latter stages of their working life as an opportunity to try something totally different. They are looking for new challenges,” says Robert Half’s David King. Another 14 per cent said they would continue on in a consulting role. “Consulting provides opportunities that a full-time job does not. That includes the variety of work involved, time flexibility, and the opportunity to work on projects that don’t involve the politics that come with a full-time job,” says King. King says companies should listen carefully to how these employees want to stay on board. “In many cases, it may mean continuing as usual. Others may choose a reduced workday or workweek; others want to work from home. There are a variety of things a company can offer in terms of accommodating workers that want to slow down as they approach retirement.” Workers were asked: “When you are ready to retire, do you see yourself quitting work entirely or taking one of the following options?” For their responses, please see the chart at left. Today’s older workers are less likely to retire after age 65, with many citing financial need, as well as a desire to keep busy, as the main reasons for hanging on past retirement. A survey by Robert Half Management Resources found only 34 per cent of respondents said they would quit work entirely upon retirement. The rest of the 492 full- or part-time adult office workers polled indicated they would continue working in some capacity—from continuing on as usual, to working fewer hours, to volunteering—after they’re ready to retire. 2% 14% 3% 6% 34% 2% 1% 14% 24% 16 D e c e m b e r 2 0 0 7 / J a n u a r y 2 0 0 8 HR P R OF E S S I ON A L

Table of Contents Feed for the Digital Edition of HR Professional - December 2007/January 2008

HR Professional - December 2007/January 2008 Contents Editor's Letter Contributors Leadership Matters Website Did You Know By the Numbers Technology Study News: Ontario Regulatory Enforcement Compensation News: Postponing Retirement Legal Compensation On Message Public Image Ltd. Building Brand Equity Research Strategy HR 101 Interview with Marshall Goldsmith Off the Shelf The Last Word

HR Professional - December 2007/January 2008

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