3. DEMAND FACTOR

It is anticipated in 2003, that there will be reasonable demand in Alberta for many of the engineering and goescience disciplines, despite Kyoto, and despite considerable economic uncertainty in the world. While it is expected that demand factors for specific professions and industry sectors will vary considerably, an overall demand factor for the three professions is estimated at 0.8%. Members who are aware that their expertise is in short supply may want to uses 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.

EXAMPLE

Using the factors outlined under our example, the June 2002 survey data in Section 2 can be adjusted to June 2003 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) 2.9% Productivity Factor (GDP) 4.8% Demand Factor 0.8% Estimated Salary Adjustment from 2002 to 2003 8.5% 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.