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.
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
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.