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Job Classification Guide ..... here




























The market varies from year to year. After identifying your market salary for 2003 (Section 2), you should then examine the current market pressures on salaries.


The inflation factor adds an amount (usually expressed in percent) to allow for the percentage increase in the Consumer Price Index  (a restoration of the value of the dollar concept). National CPI increases as well as those for Alberta, Edmonton and Calgary are supplied below.

Figure 10 - Consumer Price Increase Index (1992 = 100) Year-Over-Year Percent Change

2.           DEMAND FACTOR

2003 was a particularly strong year for Alberta’s economy, despite some early uncertainty in the energy sector due to Kyoto.  Unemployment in the Professional, Technical, and Scientific Services sector is currently hovering between 2% and 3%, and improvement from 2002 of about 1%.  These employment trends are expected to hold steady for 2004, indicating a strong overall demand for professional engineers, geologists and geophysicists, and resulting in an overall demand factor estimated at 1.0%.

Members who are aware that their specific expertise is in short supply may want to use a higher estimate for their demand factor; members who are aware that supply in their field of practice is abundant may want to use a lower estimate.


Using the factors outlined under our example, the June 2003 survey data in Section 2 can be adjusted to June 2004 by adding what you estimate the increase will be for each of three factors for the 12-month period.

The salary adjustment estimates (as explained under each factor)

are as follows:

Inflation Factor (CPI)                            3.3%
Demand Factor                                    1.0%
Estimated Salary Adjustment
from 2003 to 2004                                4.3%

This example is illustrative only. Individual situations may vary considerably .

For you as a Human Resources Manager, these factors should be considered, but may not necessarily be incrementally assessed for your salary pool.  Besides these external factors, pooled salary behaviour also depends on such factors as:  new hires, attrition, internal promotions, etc.

Figure 11 - Employer Salary Surveys Percent Change in Mean Salaries By Level of Responsibility.