A recent Towers and Perrin study indicated that 70% of Canadian companies are concerned about losing top talent because of recession induced cutbacks and salary freezes.  As the economy starts to regain some life, this concern becomes even more pertinent as organizations begin to feel concern that as their competitors begin to regain their financial footing that they may begin to actively poach top performers.

55% report that they plan to offer larger salary increases to their top talent in the coming year, and an additional 40% are planning invest in their talent management programs.

Despite these encouraging figures, reports indicate that across the board salary increases will likely be 1% in the coming year, as opposed to a pre-recession average of 2.5%.  Bonuses are also expected to remain far lower than normal.

This indicates that top performers who can demonstrate their value will be the first to see the rewards of the improving economy, while mid-level talent will have to keep waiting.

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