LATEST NEWS


The Wynford group joins Morneau Shepell


February 18, 2021

Wynford is part of MS

COVID-19 Changing How Canadian Organizations Navigate HR


February 9, 2021


Summary of the 2020 Fall Flash Compensation Projection Survey

The results included in this report are based on over 350 organization’s submissions from across Canada between November and December 2020. This report provides up-to-the-minute insight into 2021 Salary Projections and Human Capital Management strategies currently employed in the workplace. We also provide some year-over-year comparisons to demonstrate the nature of the impact of the pandemic on Human Capital practices.

For more detailed insights and in-depth data, please see our annual Canadian Salary Surveys. Click here for more information.


2021 Salary and Range Projections Summary


Average Projected Regional 2021 Base Salary Increases:
Including Zeros
Excluding Zeros
National
1.96
2.10
Alberta
1.90
2.16
Atlantic
1.80
1.89
British Columbia
2.00
2.27
Manitoba
1.83
1.92
Ontario
1.95
2.17
Quebec
1.98
2.20
Saskatchewan
1.83
1.96




Average Projected 2021 Base Salary Increases by Industry – Top 5:
Including Zeros
Excluding Zeros
Advanced Technology
2.45
Software Development
2.78
Financial
2.31
Advanced Technology
2.70
Log/Trans/Dist
2.23
IT Service
2.66
Software Development
2.16
Insurance
2.53
Telecommunications/Utility
2.12
Construction
2.50


Average Projected 2021 Base Salary Increases by Industry – Bottom 5:
Including Zeros
Excluding Zeros
Mining
1.26
Not For Profit
1.99
Energy Services
1.18
Manufacturing
1.96
Agriculture/Cannabis
1.11
Mining
1.89
Energy
1.05
Energy
1.68
Hospitality
1.00
Agriculture/Cannabis
1.48


Economic Outlook

Economic Environment - National
  • The significant trend is that 40% of organizations indicated decline in Fall 2020 opposed to the 5% indicated in Fall 2019.
  • 16% of Organizations reported Economic growth in Fall 2020, which is significantly down from the 49% reported in Fall 2019.
  • 2% of organizations reported severe decline in Fall 2020, which is down 15% from The Spring Flash Survey conducted in May. This indicates that the biggest hits were taken when the pandemic first impacted Canadian businesses.
  • 18% of organizations reported moderate decline in Fall 2020, but the majority reported unchanged.
Pandemic Related Human Capital Strategies

Fall 2020 vs Fall 2019 Human Cost Management Strategies
  • The use of job sharing is still relevant as decision-makers are trying to keep their staff employed by reworking their roles within the organization.
  • Organizations are clearly focused on reducing payroll costs indicated by the use of layoffs, salary rollbacks, and wage freezes during 2020
  • The use of wage freezes are up 10% from Fall 2019 to Fall 2020, but has decreased significantly from the 28% reported in May’s Spring Flash Survey. This is a cause for optimism indicating that businesses are trending towards operating closer to pre pandemic levels.
Fall 2020 vs Fall 2019 Human Capital Practices in Response to COVID-19 - By Province
  • Overall, organizations on a national scale are continuing to be cautious with respect to implementing selected human capital practices.
  • Increasing Number of Employees was among the more prevalent human capital practices in 2019 in most provinces
    • The opposite was true in 2020 with limited additions of employees, and significant use of layoffs, particularly in Alberta
  • British Columbia had the least number of organizations reporting that they increased the Use of Layoffs with 21% whereas Ontario reported the highest with 34%.
  • Likewise, British Columbia was at the top of provinces that Increased the Number of Employees with 13% while Ontario had the least number of organizations reporting an Increase in Number of Employees with 5%.
Fall 2020 vs Fall 2019 Human Capital Practices in Response to COVID-19 - By Province
  • Among the most common human capital practices across provinces this year was the significant amount of organizations reporting a Decrease in Hours of Work.
  • Although the focus on training has been decreased, continuing the Training Budget is among the most prevalent human capital practices throughout organizations across the majority of provinces.
    • Indicates the value of having properly trained employees supports productivity particularly when changes to technology are so common.
Pandemic Management Strategies

Fall 2020 vs Fall 2019 Pandemic Management Strategies - By Industry
  • Energy/Energy Services were among the hardest hit industries when it comes to staff layoffs and rollbacks.
    • 48% of reporting organizations indicated they endured temporary staff layoffs in the industry.
  • Finance/Insurance and Retail have fared well for permanent staff layoffs in Fall 2020 (15% and 25% respectively) in comparison to other industries.
    • Indicates a slight rebound as 2020 continued, subsequent to a significant collapse during the earlier months of the pandemic.
  • IT Service/Software Development/Advanced Technology has been among the most positive industries amidst the pandemic and one of the biggest growth drivers in the country
  • Although 14% of reporting organizations indicated that there have been temporary staff layoffs, this industry has been by far the least hit with respect to staff layoffs as well as salary rollbacks
    • Due to increased adoptions of technology in a number of industries (e.g. remote work and ecommerce), thus stimulating the IT/Tech industry.
Critical HR Issues in Response to COVID-19

In regards to Critical HR issues, the table below represents the key Human Capital Challenges organizations will need to address in 2021:


Human Resource Issue
Employee Engagement and Productivity
Addressing employees’ mental health issues e.g. EAP’s
Increase Availability of Technology and Equipment for Flexible Work Arrangements
Develop/Maintain Competitive Compensation
Increase Safety Standards and Employ Sanitary Measures Around Work Space
Review Organizational Structure

Hightlights:
  • Employee Engagement and Productivity:It has become more difficult to maximize productivity levels for each employee; weekly team meetings, goal setting and small work groups are key to overcoming these challenges.
  • Addressing Employees’ Mental Health Issues: With the majority of the workforce being in isolation, it is important to check in on employees about their well-being and engage them in virtual activities to keep morale high.
  • Increasing Availability of Technology and Equipment for Flexible Work Arrangements: A large portion of the workforce is operating out of their homes and it is crucial for organizations to adapt and provide their staff with the tools to be successful out of office.
  • Other noteworthy human capital challenges which are critical to address throughout the current working environment include:
    • Develop/Maintain Competitive Compensation
    • Increase Safety Standards and Employ Sanitary Measures Around Work Space
    • Review Organizational Structure
The following table displays which working from home models organizations are most aligned with moving forward from COVID-19:
Work From Home Model
  • Over 50% of organizations are planning a hybrid-working model (30%-70%) once COVID-19 safety protocols are lifted, while 20% of organizations plan to move to a fully remote working model.
The table below illustrates layoffs due to COVID-19 in the total workforce:
COVID-19 Layoffs
  • Permanent layoffs in the total workforce have affected salaried employees the most, with over 6% of the workforce permanently laid off.
  • Temporary (Furlough) layoffs have been the most existent among union employees, with over 6% of the work force temporary laid off.
  • Industries demonstrating the most permanent layoffs include: Energy Services, Construction, and Manufacturing.
  • Industries demonstrating the most temporary layoffs include: Energy Services, Construction, and Retail.

Gail Evans, Wynford Group Founder Retires!


January 29th, 2021


It has finally happened! Gail Evans, who founded The Wynford Group in 1991, has "officially" retired at the end of January 2021. Starting as 1 person consulting company, she grew The Wynford Group over the last 30 years, to be one of the largest boutique Total Rewards consulting firms in Western Canada . Her biggest achievement has been the nurturing and development of the Wynford Group Surveys from one Alberta-based technical survey in 1997 to the full suite of 12 national surveys, with a base of over 700 organizations across the country. The Wynford Group surveys further expanded in 2020, with the support of Morneau Shepell, to become the only comprehensive bilingual survey in Canada. With the merger with Morneau Shepell in 2020, Gail is happy to leave the survey and consulting practice in the capable hands of Calgary staff and the other Morneau Shepell offices in Toronto and Montreal.

Gail has enjoyed working with many clients and colleagues in sectors across the country and will particularly miss the face to face interaction at the Comp Update sessions that she did in major cities across the country. Although the Wynford Group has been a major part of Gail's life for the last 30 years, it is time to start the next phase. She and her husband are looking forward to lots of leisure activities like golfing, dancing and travelling abroad once COVID settles down.

We wish her well in her retirement!

To contact a Consultant:
Calgary:
Ashley Sassano asassano@morneaushepell.com
Ravi Chung rachung@morneaushepell.com
Vadim Baruzdin vbaruzdin@morneaushepell.com
Shayne McKinley smckinley@morneaushepell.com
Nick Sayer nsayer@morneaushepell.com
Toronto:
Anand Parsan aparsan@morneaushepell.com
Montreal:
Guylaine Béliveau gbeliveau@morneaushepell.com


To contact Admin:
Jenn Phillips jphillipsperez@morneaushepell.com


To contact Technical Support:
Jae Ahn jahn@morneaushepell.com
Stephan Baek sbaek@morneaushepell.com
Techsupport techsupportwynford@morneaushepell.com