Impact of the Economy on Compensation & Benefits

June 2009
The recent economic turmoil has had negative consequences for some employers and created uncertainty for others. In conjunction with the Firm's NORACS affiliates, WCBC conducted an online e-pulse survey of 253 organizations in the last half of May, 2009 to assess the impact on employers and how these organizations have responded.

Highlights of Findings

  • Approximately one-half of the organizations expect lower revenues in 2009, and 50% of private sector companies expect lower profits.
  • Four out of ten organizations have experienced a workforce reduction since September, 2008, but the private sector was most affected.
  • The last salary increase was typically 3.0% and 40% of the organizations implemented the increase in 2009.
  • Thirty percent of the organizations expect to increase salaries by the end of 2009, while 40% expect to implement increases in the first quarter of 2010. The typical salary increase is expected to be 2.5%.
  • Most organizations expect to pay bonuses with respect to this year, but the amounts will be lower overall. Approximately one-third of the organizations are reviewing the metrics used to determine the awards under their short-term and long-term incentive plans.
  • Although limited overall change is taking place with respect to group benefit plans and paid time off, some employers have implemented (or are considering) increases in contributions to their retirement plans, benefit reductions and changes to retirement plan investment policy, structure or strategy.
  • Employers are using a variety of strategies to keep employees motivated and engaged during these uncertain economic times.

Full results of current e-pulse surveys are available to participants only. To be included in future e-pulse surveys, please contact us.

Extended Health and Dental Plan Cost Increases Up Slightly

June 2009
After experiencing relatively consistent annual increases in the cost of their extended health benefits and dental plans, employers will see a slight increase in these costs for 2009.  Over the past five years, the average annual increase in the cost of extended health benefits has reached a high of 14.2% compared to the lowest annual increase of 13.5%.  Similarly, the average annual increase in the utilization of dental plans remained at about the same level for previous years.  However, for 2009 the average increase for dental plan utilization is higher.

To find out more, read WCBC's annual survey of increases in extended health and dental plan costs.

Effectiveness of Total Rewards Programs in Attraction, Motivation & Retention of Employees

December 2008
The recent turmoil in the economy has not significantly changed the challenges faced by employers in attracting and retaining a competent and committed workforce. In October, 2008 WCBC conducted an e-pulse online survey of 307 Canadian employers regarding the total rewards these organizations provide, along with an assessment of the effectiveness of these rewards/programs in attracting, motivating and retaining different generations of employees.

Highlights of Findings

  • Two-thirds of the employers stated it is important to recognize the different values and expectations of the different generations of employees in their workplace. However, only one-third of the employers feel that their existing programs are doing an adequate job.
  • The most effective work life initiatives for engaging all generations of employees were various flexible work arrangements (ranked No.1) and health promotion and wellness initiatives (ranked No.2). The effectiveness of the remaining work life initiatives varied considerably, depending on the generation of employee.
  • Generations X and Y employees were rated as more engaged by the performance review process than was the case with older employees. On the other hand, recognition programs were rated more effective in engaging Traditionalists and Baby Boomers.
  • Development and career initiatives were rated as less effective in engaging Traditionalists and Baby Boomers in comparison to Generation X and Y employees.

Full results of current e-pulse surveys are available to participants only. To be included in future e-pulse surveys, please contact us.