Expected workplace trends in 2006

Employees expected to take an increased role in decisions that affect the employment deal.

The human capital and financial management unveiled the top 10 key trends Watson Wyatt a management expert expects to see taking shape and that emphasizes “total rewards and helps positively affect bottom-line results”, said Michel Guay, managing director, Watson Wyatt Canada

Human Capital Issues

Employees in an increasingly competitive market. ages and the economy gains further momentum, progressive employers will start to think more holistically about talent management contribution to the organization’s bottom line, aligned with business strategy.

Organizations will increasingly move to integrated performance employees gain a better understanding of in-house talent, what may change
Executive Compensation Issues

among Canadian companies. Due to increased scrutiny by shareholdersand demands for greater disclosure/transparency of executive pay directors’ compensation, given the restricted talent environment, and increased accountabilities, time requirements and potential liabilities. These issues will be further explored in Watson Wyatt’s annual S&P/TSX CEO Pay study.

Communication Issues

Organizations will formalize and enhance employee communication efforts to positively affect business performance. Employees will business is run – in areas ranging from pension management to goals. This trend will be explored in Watson Wyatt’s Communication

Pension and Retirement Issues

defined benefit (DB) pension plan funding rules. Potential new rules tabled to help ensure a fairer balance between the needs of plan sponsors (particularly investment grade companies and public sector plan members, as well as the next generation of potential plan

Pension plan designs will be revised to more equitably distribute
the risks – and rewards – between plan sponsors and plan members. Due to continuing difficulties surrounding the DB pension funding shared-risk plan designs that are transparent to stakeholders.

There will be increased governance related to pensions and increased participation of plan members in pension decisions. Employers need to better manage pension risk, but plan members will require increased communication between plan sponsors and plan members and will lead to greater transparency of pension funding
Pension Investment Issues current levels. Given the weak funded status of many pension plans,relatively high investment returns experienced since mid-2003 will help. Plan sponsors will need to quantify pension fund risks and Plan sponsors and administrators

Mental Health & Workplace Disability Issues

issues and put practices in place to improve workplace health and
employee productivity. Watson Wyatt’s 2005 Staying@Work survey showed that employers are increasingly concerned about mental health of increasing productivity.