Most organizations globally are reporting an uptick in their median total salary increase budgets for 2022 vs what they had planned in 2021. This snapshot survey is conducted four times per year and provides up-to-date salary increase budget data for 100+ markets across the globe. Despite the second wave of Covid-19 hitting the . Under the 'Manage Cookies' option in the footer, accept the Functional cookies to allow the video to play. We use cookies to improve your experience. Singapore, November 15, 2022- Salary increases in Singapore are expected to surpass pre-pandemic levels with increments to average 3.75% in 2023, compared to 3.65% in 2022 and 3.60% in 2019. When it comes to compensation decisions, employers are caught in the middle of recessionary concerns, a tight labor market, and shifting employee expectations due to inflation. Its hard to say. This Video is unable to play due to Privacy Settings. The projected increment is higher than the pre-pandemic levels of 2019 by 50 basis points. We are seeing markets that have kept COVID-19 under control reporting higher than average pay raises. Our look at pressing problems and solutions for board directors. As you plan your compensation strategy and total rewards program, youll want the latest data-driven insights about the labour market. This calculation gives us a look at how much average salaries are changing due to hiring rate increases and off-cycle adjustments. To be considered a participant, confirmation of the data is required in each edition, even if your data has not changed. Senior Client Partner, ESG & Global Leader Total Rewards. These are the highest budgets weve seen since the 2008 financial crisis. Participants will receive a complimentary executive summary report of the results! Time is limited. However, they dont paint the full picture of wage increases. 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. You are using a browser version that we do not support. By using our site, you agree that we can place cookies on your device. Second, consider the impact of inflation on low wage workers. Weekly leadership messages from our CEO Gary Burnison, capturing the mood and the moment with storytelling and insights. Through its market-leading businesses including Marsh,GuyCarpenterandOliverWyman, Marsh McLennan helps clients navigate an increasingly dynamic and complex environment. Flex work and full-time remote work are increasingly part of the employee value proposition. Senior Principal Kurt Groeninger talks about creating the foundation for your ESG strategy by setting up the right infrastructure for your organization. "May you live in interesting times" is an English expression claimed to be a translation of a traditional Chinese curse. 3 ways to emphasize the human dimension and focus on your people amid digital transformation. Monitor employee movement trends in, out, and within companies around the world with data on turnover, workforce changes, hot skills and more. The hot job market has led many employers to resort to off-cycle increases (outside the annual merit cycles) and adjustments to starting wages. 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. Together, were redefining the world of work, reshaping retirement and investment outcomes, and unlocking real health and well-being. When it comes to total rewards, DEI can mean an inclusive benefits package: forward-thinking employers, for instance, are beginning to offer fertility and surrogacy benefits to same-sex couples, and support gender affirmation surgery. Complete/update all the tabs identified below, prior to the deadline for each edition, to ensure you receive access to the results! Ensure your incentive programs are competitive. This high rate of employees receiving increases results in the typical organization not being able to significantly differentiate increases between competent and outstanding performers. We use cookies to improve your experience. Its hard to say. This calculation gives us a look at how much average salaries are changing due to hiring rate increases and off-cycle adjustments. This was most pronounced in industries such as retail, where wages increased an average of 7.7percent per employee, largely due to companies increasing their internal minimum wage in response to a fast-moving job market. This Video is unable to play due to Privacy Settings. 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. Commenting on the industry salary trends, Mr Swani said, Industries that were relatively immune to the impact of the pandemic, such as Consumer Goods, Chemicals, Life Sciences and High Tech, are providing merit salary increases as usual. Other factors commonly considered include internal equity and current salary compared to midpoint or market value. Follow Mercer on LinkedIn and Twitter. WorldatWork projected a national total salary budget increase average at 3.3% for 2022, which the firm's director of Total Rewards content, Alicia Scott-Wears, said "signified not only . 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. Mercer believes in building brighter futures by redefining the world of work, reshaping retirement and investment outcomes, and unlocking real health and well-being. For more information, visit mercer.com. The 2023 limits will reflect increases in the Consumer Price Index for All Urban Consumers (CPI-U) from the third quarter of 2021 to the third quarter of 2022. Start by examining your organizations work-life balance, opportunities for internal promotions and benefits packages. For example, Life Sciences, High Tech and Other Manufacturing are all showing base pay changes over 5.6%, while Healthcare and Insurance/Reinsurance are coming in under 2.7%. Notify me when the next survey opens! US MBD: Mercer/Gartner Information Technology Survey. However, industries negatively impacted by the pandemic and more vulnerable to uncertainties like borders opening up and the return of tourism, are seeing the impact on their operations, business performance and eventually compensation. Of the 55% that plan to adjust structures in 2023, we expect to see the structures increase by 2.8%, which is just above the average actual adjustment of 2.2% reported in March of 2022. This would lead us to believe that although they are providing off-cycle increases, inflation is not the driving factor. While pay is a driving factor for many workers, it is not the only one. . Our whitepaper analyzes some of the big trends for 2022, such as improving employee wellness and leveraging remote work in your strategies . Theres an increased use of select cash compensation programs in the new war for talent and increased utilization of select non-financial reward programs. 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%). Talent All Access gives you both with quick to find and easy to digest content. Consider whether starting wages require a boost either overall or in select high-cost markets. There are several findings that are worth noting from our survey of global practices. Nearly two-thirds (64%) of employers in the United States have budgeted for higher employee pay raises than last year, according to a report from Willis Towers Watson (WTW). Slightly higher than the pre-pandemic levels, the projected salary . As long as the economy and the job market remains strong, were likely to see continued upward pressure on wages, particularly with hourly workers and in certain industry sectors. This Video is unable to play due to Privacy Settings. Our national magazine, with long and short form articles on critical leadership issues. 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. NEW YORK, September 30, 2022--Today, Mercer released the results of its 2023 US Compensation Planning Survey revealing that while salaries are going up, 2023 compensation budgets and salary . 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. Slightly higher than the pre-pandemic levels, the projected salary . With the potential for price hikes to be temporary, employers may alternatively consider lump sum awards to offset rising prices. This snapshot survey is conducted four times per year and provides up-to-date salary increase budget data for 100+ markets across the globe. The Leader in Executive Compensation Consulting | Salary Survey | Pearl . A majority of organizations are granting a significant percentage of their employees a salary increase this year (i.e., at least 90% of employees will receive an increase). Employers are budgeting an average of 3.8% for merit increases compared to the 3.4% actually delivered this year and 4.2% for their total budget increase for 2023. 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%. Participate by February 3 | Results publish early March, Participate by May 5 | Results publish early June, Participate by August 11 | Results publish early September, Participate by November 17 | Results publish mid December. But is it enough? Engaging articles centering on business issues our clients have tackled. Not only will this help better manage employee expectations around their pay in todays difficult market, it will also help prepare and respond to heightened pay transparency requirements amidst ever-changing statelaws. For most employers, cost of living increases are a thing of the past. 2022 by Mercer that polled 636 organizations across 15 industries in Thailand between April and June this year. 2023 Mercer (Canada) Limited. The pandemic had the effect of thrusting inequality into the spotlightnot just in healthcare or law enforcement, but in the workplace, as well. However, there is some variation by industry: In order to accommodate the increasing annual increase budgets, salary structures are increasing as well. 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. Under the 'Manage Cookies' option in the footer, accept the Functional cookies to allow the video to play. Other industries such as High Tech and Consumer Goods also saw increases over prior year. First look at increase budgets for North America. Workspan Daily provides fresh news, every weekday. 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. Participate in as many of the markets listed below, as you like. November 2022 results. For example, some companies have been considering stipends or allowances to help workers combat the rising gasprices. The US Compensation Planning Survey includes data from more than 1200 US organizations of varying sizes across 15 industries. This certainly applies to HR Management in 2021. By. 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. 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. Indonesia, 21 December 2021 - Salary increments in Indonesia are on the rebound to pre-pandemic levels, with median pay increases projected to hit 6.5% in 2022. Under the 'Manage Cookies' option in the footer, accept the Functional cookies to allow the video to play. Of the 62% that plan to adjust structures in 2023, we expect to see the structures increase by 3.0%, which is just above the average actual adjustment of 2.9% reported in March of 2022. Likewise, we are seeing an increase in the total increase budget for 2023: 3.9% for 2023, compared to 3.4% in 2022. Moreover, only 2.8% of Asia Pacific employers indicated they have plans or are considering to implement further layoffs and workforce reductions next year, compared to 7.8% in 2021. Likewise, employees with small children have also had a pandemic experience that is vastly different from those who have teenagers or no children. What can corporate leaders learn from the coaches manning the sidelines? To address this question, its helpful to examine how compensation budgets have been impacted by inflation in years past. Then, consider benchmarking how your total rewards program stacks up against your competitive set: salary, benefits and those more nuanced qualitative differentiators that speak to your organizational culture. 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. Many companies took immediate action following the minimum wage announcement, according to Mercer Turkey CEO Dincer Guleyin. That challenge of attrition rates can prove to be an opportunity with the right perspective. The Video could not be loaded because the privacy settings are disabled. Just as important, however, is ensuring that your organizational culture is one that actively seeks out this kind of feedback, welcomes it and, most importantly, acts on the findings. As the US reverses restrictions on immigration, experts say firms may find more tech talent, which could reshape their business. Through its market-leading businesses including Marsh, Guy Carpenter and Oliver Wyman, Marsh McLennan helps clients navigate an increasingly dynamic and complex environment. But its also the little things, like paying attention to what food is served in the office, what music is played at corporate events, and ensuring that everyone, at every level, is respected. Employers are budgeting an average of 3.8% for merit increases compared to the 3.4% actually delivered this year and 4.2% for their total . Overall, the Consumer Goods industry will see the highest increases in salaries for 2022 at 5.8% while the Retail industry will see the lowest increase at 4.3% across the region. However, this will change with the annual inflation figure, which was announced on Monday. 1 Mercers 2021 E3 Salary Movement Snapshot survey was conducted in July and August 2021 that polled 1,730 organizations globally. Stay on top of the latest leadership news with This Week in Leadershipdelivered weekly and straight into your inbox. Currently, employers are projecting a salary increase of 4.1% for 2023, slightly up from the 4% actual increase employees got this year. Its a mind-boggling number when you think about it: Half a trillion dollars on airport projects over just a few decades. In summary, wages are going up, but inflation is not the trigger. And of course, the reason is the tight labor market. According to Mercers US Compensation Planning Survey, the average 2022 merit increase budget is 3.4percent, with total increases (including other types of base pay increases, such as promotional awards) reaching 3.8percent. Determine the right incentive program for your company by evaluating eligibility, targets and actual incentive data for STI, sales and LTI. Puneet Swani, Mercers Career Business Leader for Asia, Middle East, Africa and the Pacific, said, The projected salary increments highlight a divergence in pay progression between emerging and developed economies. 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. How much larger will increase budgets be for 2023? Top-performing individuals can be enticed with multi-year bonuses or lump sums to reflect current market premiums. Give us a call at 1-855-286-5302 or email surveys@Mercer.com. Of those companies that indicated COVID-19 had a high impact on their . Resources: Leading in the New Shape of Work. In March 2022, only 38% indicated that they were providing off-cycle increases, but in this pulse survey, 64% of participants report that they provide off-cycle increases. 2023 Mercer (US) LLC, All Rights Reserved, 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. That's a far cry from just a couple of years ago. Contact Us. Banking and Financial organizations tend to openly communicate their structure information, even without being asked, more so than other industries. For example, remote workersespecially those living in small communities or rural areasmay be more enticed by virtual offerings for medical and mental health support. One in three organizations say they have, or plan to take, a living wage approach for hourly wages, according to Mercers Compensation Planning Survey. The survey is available in English, Portuguese and Spanish. This survey digs into the why and how of talent global mobility programs within your company's overall strategy. In this survey, you may submit all selected markets in a single submission. Workspan Magazine supplies in-depth analysis on pressing issues. Separate promotion budgets still dont seem to be the norm only 18% indicated that they have them. 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. No two workplaces will have the same answers to these questions. Hiring across the region has also accelerated in the second half of 2021, as businesses shift their attention from reducing staff to hiring more, albeit still not at pre-pandemic levels.