Current information on important topics related to compensation planning. 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This snapshot survey gathers salary increase data for 150+ markets across the globe. In February this year, services firm Aon revised its salary increment trend to 9.9% versus an average of 9.4% that it had forecast in September 2021. While wage increases are inevitable, there's more to the solution. Most employers reported that the pay increases are in direct response to . As we look to 2023, Korn Ferry talent acquisition experts offer their thoughts on what the coming year will bring to the job market. Likewise, we are seeing an increase in the total increase budget for 2023: 4.2% for 2023, compared to 3.8% in 2022. Based on the average of five firms gathering compensation data ( Normandin Beaudry, Mercer, Pa yscale, LifeWorks, and Eckler ), projected increases to Canadian salaries in 2023 are expected to be approximately 3.8%. Corporate & Investment Banking / Global Markets. Overall median salary increments projected to hit 5% in Malaysia next year, up from 4.8% this year . If you have previously participated in the 2023 SBS survey, you can return to the survey, and enter your email address to receive the link to your existing survey submission. Review statutory and supplemental benefit details for social security, retirement, medical, death, disability and more. Most organizations globally are reporting an uptick in their median total salary increase budgets for 2022 vs what they had planned in 2021. According to Mercer's US Compensation Planning Survey, the average 2022 merit increase budget is 3.4 percent, with total increases (including other types of base pay increases, such as promotional awards) reaching 3.8 percent. Lastly, take the opportunity to become more transparent around pay. The typical practice is a 1.5X difference in increase percentages between these performers (e.g, an outstanding performer receives a 4.5% increase vs. a competent performer receiving 3.0%). These products are all included in Talent All Access Portal+, but can also be purchased separately. A separate Grant Thornton survey of 1,500 full-time U.S. employees found that 51% would give up a 10% to 20% salary increase . How much larger will increase budgets be for 2023? Bolstering the financial health of your employees can be accomplished through channels other than simple wage increases. Will annual increase budgets be higher when we run the survey again in . Currently, employers are projecting a salary increase of 4.1% for 2023, slightly up from the 4% actual increase employees got this year. This is the sixth in a series of global pulse surveys from Korn Ferry designed to gather insights into how organizations are adapting their reward programs in response to a rapidly changing world, and to assess how their plans for future rewards programs are evolving. Weekly leadership messages from our CEO Gary Burnison, capturing the mood and the moment with storytelling and insights. Now part of the Mercer QuickPulse TM survey series to give you the latest insights in compensation planning and total rewards. The 15 largest economies in the world are forecasting an average increase of 4.3%, which is 3 percentage points higher than the actual increase of 4.0% in 2021. How will you use this information to develop your proposal, knowing its preliminary? However, with teams spread across a country or globally, employers need to overcome key challenges in fostering a sense of organizational values and processes. As expected, this year, the majority of organizations are planning to provide salary increases in 2022. 2023 Mercer (US) LLC, All Rights Reserved, About Mercers US Compensation Planning Survey, Turning health risk into value: well-being, Gig is BIG: The nature of work has changed, Shifting Trends and What They Mean for the Future, Value of integrating investment and actuarial services, See all investments and retirement insights, 2022 US Compensation Planning Survey, March edition, Analysis of Mercers 2022 Mercer Benchmark Database. Given the typical budget approval process at any organization, we get it. Actual increases were higher than predicted. In addition, Mercer also conducts regular pulse surveys throughout the year to keep up with the impact of the rapidly changing business environment and compensation and workforce trends. Please see ourPrivacy Policyfor details. Mr Swani added, Despite the impact of the pandemic on global unemployment, employers in many markets are having difficulty finding talent especially with very limited talent mobility across countries due to border restrictions, and companies are looking to attract and retain their employees with more competitive compensation and benefit packages.. WALTHAM, MA (September 1, 2021) - Salary.com's Annual U.S. National Salary Budget Survey reveals that 41 percent of organizations plan on having a higher salary increase budget in 2022 than they did in 2021, representing the first significant shift in merit increases in the last 10 years of survey data. We continue to stand at a crossroads in the world of work. These are the highest budgets weve seen since the 2008 financial crisis. With 11.3million job openings, employees have options. This year, Mercer's Total Remuneration Survey (TRS) also saw higher projected increments across most of the 18 1 industries surveyed. Organizations should take care in interpreting this forecast data as there is a significant variance in company practices regarding the types of pay increases that are included in these projections. As a result, forecasted increases are likely understated to actual total increase practices by as much as 25-33% of the overall budget. Retail and Wholesale, along with Mining and Metals, on the other hand, tend to be a bit more conservative at communicating grades/bands than other industries. The Workspan suite provides news and insights, delivered in a variety of concise, easily digestible formats. Dont let pay be the reason your employees start to explore other opportunities. except for those from the High Tech industry, can also expect higher bonus payouts this year, based on Mercer's mid-2022 forecast. Manage your transportation benefits efficiently and effectively. The projections for 2022 salary increase budgets jumped almost a full percentage point, from 3 percent in April to 3.9 in November. Current & projected data on pay increases, structure adjustments, and more. Explore Mercers latest thinking to see how were helping to redefine the world of work, reshape retirement and investment outcomes, and unlock real health and well-being. Once you have clicked Submit to complete the survey, a confirmation email will be sent to you. Ensure your incentive programs are competitive. Still, only 24% of companies will communicate an employees grade/band upon request. This Video is unable to play due to Privacy Settings. Now is the time for employers to close any gaps in competitiveness and keep a close pulse on the market for fast-moving market segments. How will you use this information to develop your proposal, knowing its preliminary? We are creating a new Remuneration Trends and Insights website. With remote work here to stay, employees can cast a much wider net in their job searches than when they were limited by geography. Despite an influx of legislation aimed at increasing pay transparency, the survey found employers have been slow to modify their communication of pay ranges outside of state mandates. The Video could not be loaded because the privacy settings are disabled. If your company runs on a calendar financial year, then its likely that you are putting together the numbers and justification for annual increases, structure adjustments, and other critical compensation management elements. Explore Mercers latest thinking to see how were helping to redefine the world of work, reshape retirement and investment outcomes, and unlock real health and well-being. Need compensation planning data in Canada? By. 2 World Economic Outlook, International Monetary Fund, April 2021. Likewise, we are seeing an increase in the total increase budget for 2023: 3.9% for 2023, compared to 3.4% in 2022. Executives, management and professional . And Statistics Canada is now reporting CPI at 4.1% (Year-over-year August), the . By using our site, you agree that we can place cookies on your device. Mercers approximately 25,000 employees are based in 43 countries and the firm operates in 130 countries. The combination of wage growth and the rise in inflation is reflected in the projection of salary increase budgets for 2022, climbing to 3.9% in November from the 3% reported in April 2021. Of those companies that indicated COVID-19 had a high impact on their . Workspan. Beyond budget numbers, we have recently started looking at the per capita increase, which is simply a calculation of the change in total salaries from one point to another divided by the number of employees. Additionally, to keep it in perspective, the majority of employers did report that the percentage of employees receiving off-cycle increases is typically less than 30%. Access information and participation materials for a range of compensation and benefits surveys conducted in the US and Canada. You need reliable compensation planning insights to help you navigate through this unique labor market.In a series of brief surveys, you'll access key data points like annual increase budgets, structure adjustments and incentive usage that meet your immediate compensation planning needs. Sign up to be notified when the next pulse survey opens for participation. If you have participated in this survey within the past year, you will receive an email reminder during the participation period for each edition. Despite knowing this, we have continued to ask survey participants to give us their budget projections in August, largely because, well, clients and consultants alike are used to survey vendors publishing budget numbers at this time of year. Need help? Time is limited. Follow Mercer on LinkedIn and Twitter. The UK has . Enter the characters shown in the image. Take this opportunity to seal any cracks in your competitive position, increase pay transparency, and reassure employees that their pay is aligned with the external market even if they dont see their pay moving at the rate ofinflation. This would lead us to believe that although they are providing off-cycle increases, inflation is not the driving factor. The Video could not be loaded because the privacy settings are disabled. Savy employers are starting to do the same, expanding their labour market beyond regional boundaries. With minimal impact on productivity, collaboration or employee development, more employers are also willing to offer either part-time remote working (76%), flex-time (75%) or full-time remote working arrangements (32%) as part of their future of work policy, up 46%, 12% and 22% respectively in relation to pre-pandemic levels. Theres an increased use of select cash compensation programs in the new war for talent and increased utilization of select non-financial reward programs. And the Workspan Podcast offers timely insights from experts in a . The US Compensation Planning Survey includes data from more than 1200 US organizations of varying sizes across 15 industries. Mercer is a business of Marsh McLennan (NYSE: MMC), the worlds leading professional services firm in the areas of risk, strategy and people, with 81,000 colleagues and annual revenue of over US$19 billion. Hong Kong (3.5%), Singapore (3.5%), Malaysia (4.5%), Philippines (5%) and Thailand (5%) came in below the regional median of 5.4%, while Indonesia came in above at 6.5%. Today, Mercer released the results of its 2023 US Compensation Planning Survey revealing that while salaries are going up, 2023 compensation budgets and salary projections for US employers are expected to lag behind inflation. However, it should be noted that these budget numbers are only preliminary and should be considered to be one of several inputs used to determine an organizations budget. The last remaining legacy of this historical practice is reflected in some labor contracts and collective bargaining agreements where wage increases remain indexed toCPI. To be considered a participant, confirmation of the data is required in each edition, even if your data has not changed. The industries predicted to have the biggest salary increases in 2022 compared to what their increases were in 2021 are: Retail and wholesale trade: 2.8% to 3.6%; Finance: 2.7% to 3.5%; Providing more flexibility around days off for caregiver support could be one way to show the parents on your team that their wellness matters to the entire organization. You will receive a unique link via email to access your survey submission. The Retail industry is expecting the biggest jump to 12.6%, from 8.1% in 2021, followed closely by the . The consumer price index rose 8.5 percent over the last 12months the highest inflation the US market has seen in more than 40years. While nearly 80% of organizations reported that they are just in the preliminary stages of determining their 2023 annual . We have seen this manifest through an emerging shift in approach to compensation setting for low wage workers. Employers are also recognizing the value of knowing what skills reside within the organization, how demand for skills can swiftly shift with the market, and the importance of deploying or developing existing employees to meet changing needs. Update your submission as needed, and click the Submit button! Excluding companies that have implemented wage freezes, it is a 1.2% improvement from 5.3% this year but still below the 6.9% in 2019. This snapshot survey is conducted four times per year and provides up-to-date salary increase budget data for 100+ markets across the globe. However, they dont paint the full picture of wage increases. Industry-wise, financial services is . . The Federal Reserve has already begun taking aggressive action for this to happen. The Video could not be loaded because the privacy settings are disabled. When comparing the average base pay per employee from 2021 to 2022, wages increased an average of 4.9percent. According to the International Monetary Fund, Asia Pacific remains the fastest growing region in the world, but the gap in economic recoveries across the region is widening, with risks tilted to the downside due to uncertain pandemic dynamics as well as vaccine coverage and efficacy against new virus variants. Mercers 2022 Global Talent Trends found that organizations are increasingly placing emphasis on the sustainability of human capital, with one in three executives believing that delivering on good work standards such as fair pay or worker protection will deliver the greatest ROI, and nearly nine in 10 HR leaders say that delivering on good work standards is a priority for HR. At this same time last year, we asked survey participants to indicate what month they will have a finalized annual increase budget for the coming year. Other factors commonly considered include internal equity and current salary compared to midpoint or market value. The UK has gone from 2.5% to 3.0% (from the middle of 2021 to now), Australia from 2.4% to 3.0%, Brazil from 6.1% to 7.4%, Turkey from 18% to 30%, Ukraine from 6.5% to 10.3%, and Russia from 5% to 7.5%. Will annual increase budgets be higher when we run the survey again in November? For example, the US median increases have risen from 3.0% (during the middle of 2021) to 3.5% (as of now). Lets dive a little deeper into some of these trends in compensation planning. The total base salary increase budget includes other base pay increases such as promotions and cost of living adjustments, in addition to merit increases. Discover whats next in the world of rewards from Korn Ferrys Client Partner, Ben Frost. If your company runs on a calendar financial year, then its likely that you are putting together the numbers and justification for annual increases, structure adjustments, and other critical compensation management elements. Consider whether starting wages require a boost either overall or in select high-cost markets. Slightly higher than the pre-pandemic levels, the projected salary increments reflect a faster and stronger economic rebound when compared to the Global Financial Crisis, with real Gross Domestic Product (GDP) growth expected to increase by 5.1%2 in 2022. Follow Mercer on LinkedIn and Twitter. You need numbers to get the conversation started. This survey ran from December 2021 to January 2022 and it reflects responses from 5,042 participants in 116 countries. Understanding where your offer may not be competitive enough can give you insights into what employees truly want out of their workplace. You need numbers to get the conversation started. In the US, however, its more likely the high inflation we are seeing today will be temporary, driven by supply shocks from COVID lockdowns and the Russia/Ukraine crisis, and that well see a return to more normal levels of inflation. Just always keep in mind that you will likely see a change from the September to the November publication of the projected budget numbers. As skills begin to overshadow education or experience, more companies are implementing skills-based pay practices to attract new talent and retain critical skills. While pay transparency might be in the news more and more, employers have been slow to modify their communication of pay ranges. And of course, the reason is the tight labor market. Simply revisit the survey and click the submit button to confirm previously entered . Forgotten your login user name or password? There are several findings that are worth noting from our survey of global practices. Mercerbelieves in building brighter futures by redefining the world of work, reshaping retirement and investment outcomes, and unlocking real health and well-being. Excluding companies that have implemented wage freezes, Pakistan (9%) has the highest projected salary increase in 2022, followed by India (8.7%) and Bangladesh (7.8%). Only 2% of participants responded that they did not use factors and instead provided an across the board increase, which would indicate that increasing pay across the board for inflation or cost of living is a prevalent practice. More than 30 million viewers are expected to watch football this Thanksgiving. Understand how features such as eligibility, performance measures, timing, payout and governance will help you design and structure the best sales incentive plans for your company. Mercer, an American asset management firm, projected an increase of 9% in salaries across industries in 2022. Salary increase planning made easy. In 2020 when the pandemic began, Fusco adds, just . For more information, visit mercer.com. Marsh McLennan is the leader in risk, strategy and people, helping clients navigate a dynamic environment through four global businesses. Despite knowing this, we have continued to ask survey participants to give us their budget projections in August, largely because, well, clients and consultants alike are used to survey vendors publishing budget numbers at this time of year.