Weve combined annual compensation survey data and recent rewards and benefits pulse surveys to provide anticipated salary increases for 2022. As a result of the last two years of adapting and evolving, organizations globally have charted new business and talent strategies, and this has had a significant impact on the direction of reward programs. The exception is Brazil, which is projecting a 6.2% salary budget increase in 2022 compared to 7.1% in 2021. Compare your company to the market with base salary and total cash compensation data for up to 50 benchmark jobs. Only 3% 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. Asia, 21 December 2021 - Companies in Asia Pacific are forecasting a median 5.4% increase in overall salaries for 2022 amid uncertainty as economies start to reopen, compared to 5.1% in 2021 and 4.8% in 2020, according to Mercer's latest Salary Movement Snapshot Survey 1. 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. 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. The UK has . Then, collect and incorporate the unique factors of your organization that will influence the budgets (e.g., financial performance, hiring needs, etc.). 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. There are several findings that are worth noting from our survey of global practices. As it stands today, 44% of organizations do not communicate any information regarding an employees current compensation grade or band, and only 21% of employers make available compensation bands for all jobs outside the employees current role. In 2020, inflation was a low 1.4% but salary increase budgets in 2020 and 2021 were higher (between 2.5% and 2.8%). Visit the US & Canada Participation Station! With 11.3million job openings, employees have options. Overall median salary increments projected to hit 5% in Malaysia next year, up from 4.8% this year . Asia, 21 December 2021 Companies in Asia Pacific are forecasting a median 5.4% increase in overall salaries for 2022 amid uncertainty as economies start to reopen, compared to 5.1% in 2021 and 4.8% in 2020, according to Mercers latest Salary Movement Snapshot Survey1. Will annual increase budgets be higher when we run the survey again in November? 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 . The top three sectors with the highest salary increase projected for 2022 are technology, e-commerce, and IT-enabled services. For example, the US median increases have risen from 3.0% (during the middle of 2021) to 3.5% (as of now). Take a proactive approach to managing your workforce in a competitive job market. Within the survey, each topic can be accessed via the drop-down menu icon at the top of the page. 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. There are several findings that are worth noting from our survey of global practices. What are they doing right? Most organizations globally are reporting an uptick in their median total salary increase budgets for 2022 vs what they had planned in 2021. Understanding where your offer may not be competitive enough can give you insights into what employees truly want out of their workplace. Likewise, employees with small children have also had a pandemic experience that is vastly different from those who have teenagers or no children. 2022 by Mercer that polled 636 organizations across 15 industries in Thailand between April and June this year. The study found that employers primary response to inflation is a reactionary one of providing ad-hoc off-cycle wage reviews and/or adjustments (reported by 38% of employers). Most organizations address gaps in competitiveness over time through merit budgets, but the current labor market warrants a more aggressive approach to market adjustments to ensure that pay is competitive for all employees not just in aggregate. As expected, this year, the majority of organizations are planning to provide salary increases in 2022. By using our site, you agree that we can place cookies on your device. These include the Hospitality, Airlines, Retail and Luxury Goods sectors.. Use your compensation budget wisely. 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. Salary increase percentages for 2022 are higher than prior year across all industries and markets in the region, with some even above pre-pandemic levels. The average 2023 merit increase budget, including zeros, reported by survey participants came in at 3.8%, compared to the 3.4% actually delivered in 2022. Our look at pressing problems and solutions for board directors. ARLINGTON, Va., Jan. 13, 2022 (GLOBE NEWSWIRE) -- Fueled by tight labor markets, U.S. employers are boosting their original salary increase projections for 2022 as the Great Resignation shows no . Given the current climate, salary projections for 2022 are lower than expected, according to Normandin Beaudry. As a SBS participant, you will receive free access to individual reports for all available markets in which you have submitted data. 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. This is according to the annual Total . As a result, forecasted increases are likely understated to actual total increase practices by as much as 25-33% of the overall budget. US salaries are going up, but compensation budgets for next year and salary projections are expected to lag inflation, according to the "2023 US Compensation Planning Survey" released by Mercer. The Federal Reserve has already begun taking aggressive action for this to happen. So many things in our world are changing. As for the percentage of the total base salaries that are set aside for promotions, this year participants indicated that they budget 1.3%, which is slightly higher than this time last year. For this survey, there is a particular focus on salary increase projections for 2022. By. This would lead us to believe that although they are providing off-cycle increases, inflation is not the driving factor. Contact Us. . Developing a compensation strategy for remote employees will be central to their long-term retention. The average raise is expected to be 3% next year, up from 2.7% in 2021, according to a survey by Willis Towers Watson, a human resources consulting company. Senior Client Partner, ESG & Global Leader Total Rewards. The consumer price index rose 8.5 percent over the last 12months the highest inflation the US market has seen in more than 40years. Current & projected data on pay increases, structure adjustments, and more. 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. We have provided the data excluding those organizations that are not providing an increase. For more information, visit mercer.com. Participation is simple, with just one survey for all four editions. 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. 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). To find out what creative approaches you can be taking, contact us here. While pay transparency might be in the news more and more, employers have been slow to modify their communication of pay ranges. First look at increase budgets for North America. Workspan Daily provides fresh news, every weekday. This certainly applies to HR Management in 2021. 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. Marsh McLennan is the leader in risk, strategy and people, helping clients navigate a dynamic environment through four global businesses. The pace of change in the market may also warrant employers to make adjustments outside of the traditional annual paycycles. 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. In our Inside Employees Minds research, covering monthly expenses was the number one concern of low wage workers, and it has become an even greater challenge amidst inflation as workers face escalating gas prices and more expensive grocery bills. Mercer believes in building brighter futures by redefining the world of work, reshaping retirement and investment outcomes, and unlocking real health and well-being. That challenge of attrition rates can prove to be an opportunity with the right perspective. The Total Remuneration Survey, Mercers flagship annual compensation and benefits benchmarking study, identifies current pay practices and benefits policies, as well as budget, hiring and turnover trends for the year ahead. 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. Our national magazine, with long and short form articles on critical leadership issues. Stay ahead of everchanging regulations. Personalized benefits plans are a great way to account for these discrepancies. Update your submission as needed, and click the Submit button! Manage your transportation benefits efficiently and effectively. First off, use this as directional information and combine it with additional sources. Sign up to be notified when the next pulse survey opens for participation. Most organizations globally are reporting an uptick in their median total salary increase budgets for 2022 vs what they had planned in 2021. Theres an increased use of select cash compensation programs in the new war for talent and increased utilization of select non-financial reward programs. This Video is unable to play due to Privacy Settings. The Great Resignation has overwhelmed nearly every industry except two. 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. For most employers, cost of living increases are a thing of the past. The most increased focus is in the following areas: The results of this survey show that as salary increases stall, employers will need to get creative about non-cash rewards to retain and engage employees. Across industries, Financial Services is leading the market at 4.0% merit and 4.7% total increases. Senior Principal Kurt Groeninger talks about creating the foundation for your ESG strategy by setting up the right infrastructure for your organization. Even though recovery is uneven across the region, companies are showing renewed business confidence as well as getting used to working with the pandemic and this is reflected in the rebound in salary increments.. Create a solid foundation for your pay structure. Chinas potential in the life sciences sector is undisputed, given its long history and tradition in medicine. The disconnect in compensation budgets and rising inflation is creating frustration with workers, who have seen all of their wage gains eroded by rising costs. The fierce competition for talent and the anticipated economic recovery is putting pressure on salary increases for next year. An email notification will be sent to participants once access has been granted; this email will contain instructions on how to access the results. The actual average merit increase delivered so far in 2021 was 2.8%, but that number dips to 2.5% when including those companies that did not deliver increases. We use cookies to improve your experience. Forgotten your login user name or password? 1 Mercers 2021 E3 Salary Movement Snapshot survey was conducted in July and August 2021 that polled 1,730 organizations globally. Over half (53%) of organizations said they will comply with local laws and have no plans to broaden transparency beyond what is required. Access the Canada Compensation Planning Survey for insights to help with pay decisions in that country. 2023 Mercer (Canada) Limited. We were prompted to initiate this survey when it became increasingly clear from our clients toward the latter part of 2021 that early compensation increase projections for 2022 may no longer be relevant. Likewise, we are seeing an increase in the total increase budget for 2023: 3.9% for 2023, compared to 3.4% in 2022. Our whitepaper analyzes some of the big trends for 2022, such as improving employee wellness and leveraging remote work in your strategies for both compensation and recruitment. Simply revisit the survey and click the submit button to confirm previously entered data. No two workplaces will have the same answers to these questions. While nearly 80% of organizations reported that they are just in the preliminary stages of determining their 2023 annual increase budget, the survey found that overall salaries are going up. Bringing you the most up-to-date information on remuneration trends and insights on the current rewards environment, key economic data affecting pay decisions, topical HR issues 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. Need help? More than 93 per cent of Australian organisations are planning salary increases for their workforce in 2022 of 3 per cent, up 0.5 per cent from 2021, according to Mercer's annual Total Remuneration Survey (TRS) . except for those from the High Tech industry, can also expect higher bonus payouts this year, based on Mercer's mid-2022 forecast. 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%. By participating in the survey, you will automatically receive the results for free when they publish. Not only can doing so enhance retainment, it can also save your organization money in the longrun. Internet Explorer is no longer a supported browser on imercer.com. For an optimal experience on imercer.com, please use Chrome, Edge, Firefox, or Safari. Sustained merit salary increase of 4.5% for 2022, also forecasted for 2023 . BY Jim Wilson 19 Jul 2022. Employee benefits consulting and brokerage, Mental health's impact on work and home life, Mental health and how to improve employee access and support, Pension evolution: Retirement and investment video series, Addressing workforce diversity, equity and inclusion (DEI), Moving mobile employees ahead of inflation, Reshaping the future: Take stock & solidify - Feb 2, 2023, Mercer Global Investment Forums 2022 - Canada, Webinar replay: Global Talent Trends 2022, global pandemic survey on labour market challenges. Almost two-thirds of employers plan to award raises in 2023 that are larger than last year, Willis Towers Watson found in a survey of more than 1,400 U.S. companies conducted in April and May. The last remaining legacy of this historical practice is reflected in some labor contracts and collective bargaining agreements where wage increases remain indexed toCPI. 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. Simply revisit the survey and click the submit button to confirm previously entered data. All Mercer events about talent, investment, and health issues. Notably, when asked what they were doing to offset market inflation for their employees, only 34% indicated that they would provide an ad hoc off-cycle wage review and/or adjustment, while a similar percentages indicated they that were not planning to do anything. Individual performance is still the most common factor that employers use to determine the size of an individuals annual increase. 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. Mercers 2021 Flexible Working Policies & Practices Survey show that 54% of companies in Asia Pacific have implemented or are actively developing a long-term flexible working strategy. 2 World Economic Outlook, International Monetary Fund, April 2021. Despite what was projected in 2021 for 2022 salary increases, it has gone up. First off, use this as directional information and combine it with additional sources. India (9.4%) has the highest salary increase in 2022, followed by Vietnam (7.4%) and Indonesia (6.7%).
