Current & projected data on pay increases, structure adjustments, and more. Plus, why CEOs are losing confidence in their direct reports. The Healthcare industry is lagging behind the market at 3.3% merit and 3.6% total increases. Then, collect and incorporate the unique factors of your organization that will influence the budgets (e.g., financial performance, hiring needs, etc.). 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. 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. While pay transparency might be in the news more and more, employers have been slow to modify their communication of pay ranges. Then, collect and incorporate the unique factors of your organization that will influence the budgets (e.g., financial performance, hiring needs, etc.). except for those from the High Tech industry, can also expect higher bonus payouts this year, based on Mercer's mid-2022 forecast. While inflation currently sits at about 7%, salary increase projections are just over half that. 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. 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. For most employers, cost of living increases are a thing of the past. Survey: Transportation Policies | Extended to March 3, Survey: Strategic mobility management | Participate by March 17, Survey: Long-term international assignment policies and practices | Participate by March 17, Survey: Salary Budget Snapshot E2 | Participate by May 5. 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. This Video is unable to play due to Privacy Settings. Discover which types of transportation benefits are commonly offered and who is eligible to receive them with Mercer's survey on Transportation Policies. Total increases were slightly higher at 2.9%, decreasing to 2.6% when factoring in those not providing increases. 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. This Video is unable to play due to Privacy Settings. Likewise, we are seeing an increase in the total increase budget for 2023: 3.9% for 2023, compared to 3.4% in 2022. For example, Life Sciences, High Tech and Other Manufacturing are all showing base pay changes over 5%, while Healthcare and Insurance/Reinsurance are coming in under 3%. Senior Client Partner, ESG & Global Leader Total Rewards. Many employers are reporting an increase in attrition rates as employees begin to look for more appealing offers, both in their current industry and in new ones altogether. This is especially true for hourly workers, whose base pay rose on average 6.7%2 in 2022, despite a 3.8%3 total base pay increase budget. Developing a compensation strategy for remote employees will be central to their long-term retention. The new type of job that ChatGPT is making companies scramble to fill. This year, Mercer's Total Remuneration Survey (TRS) also saw higher projected increments across most of the 18 1 industries surveyed. September 22, 2022 Canada, Toronto Today Mercer released the results of its 2023 Compensation Planning Survey revealing that inflation continues to put significant pressure on the compensation budgets and salary projections of Canadian employers.. Canadian employers report they are budgeting 3.4 per cent for merit increases and 3.9 per cent for their total budget increase for 2023. 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. Marsh McLennan is the leader in risk, strategy and people, helping clients navigate a dynamic environment through four global businesses. However, should the economic situation continue to decline, that may change this outcome. Banking and Financial organizations tend to openly communicate their structure information, even without being asked, more so than other industries. Employers must increase focus on pay for skills across the employee life cycle that is aligned with overarching rewards and talent strategies to future-proof their workforces for whatever upheavals that may come.. 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 . Mercer's 2021 Total Remuneration Survey (TRS) also saw projected overall wage increases across all 18 industries 1 surveyed.. Business sentiment for 2022 remains positive as companies expect to . Employers have an opportunity to share with employees not only how pay levels are set, but also information on the market range for their role. Missing your live results access code? 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. By. However, there is some variation by industry: In order to accommodate the increasing annual increase budgets, salary structures are increasing as well. 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. Lets dive a little deeper into some of these trends in compensation planning. If you have participated in this survey within the past year, you will receive an email reminder during the participation period for each edition. 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. 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. The Retail industry is expecting the biggest jump to 12.6%, from 8.1% in 2021, followed closely by the . The days of a standardized one-size-fits all employee benefits package could be drawing to a close. Now part of the Mercer QuickPulseTM survey series to give you the latest insights in compensation planning and total rewards. 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. Guleyin stated that the average wage increase expectation for 2022 for the 673 companies surveyed stood at 32%. This survey digs into the why and how of talent global mobility programs within your company's overall strategy. Our look at pressing problems and solutions for board directors. Manage your transportation benefits efficiently and effectively. Access to the free individual reports will be provided once each edition is published. 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. Participants will receive a complimentary executive summary report of the results! The Video could not be loaded because the privacy settings are disabled. How will you use this information to develop your proposal, knowing its preliminary? The hot job market has led many employers to resort to off-cycle increases (outside the annual merit cycles) and adjustments to starting wages. While inflation has had limited impact on compensation planning in recent history, it can play a larger role outside the US, where countries are more likely to experience hyperinflation or persistent and sustained high inflation as part of their economy (e.g., Turkey and Argentina in recentyears). Chinas potential in the life sciences sector is undisputed, given its long history and tradition in medicine. Given the typical budget approval process at any organization, we get it. 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. The Video could not be loaded because the privacy settings are disabled. Will annual increase budgets be higher when we run the survey again in . These include the Hospitality, Airlines, Retail and Luxury Goods sectors.. Employers are increasingly using off-cycle increases to combat retention concerns, along with other issues. 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. 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. More than 30 million viewers are expected to watch football this Thanksgiving. By using our site, you agree that we can place cookies on your device. Employers reported they are budgeting an average of 3.8% for merit increases compared to the 3.4%1 actually delivered in 2022 and 4.2% for their total increase budget for 2023. Employers' compensation budgets are set to rise 3.3% for merit budgets and 3.5% for total budgets in 2022, a survey by HR consulting firm Mercer found a slight increase from the 2.8% merit and . Complete/update all the tabs identified below, prior to the deadline for each edition, to ensure you receive access to the results! Evaluate IT position salaries with this in-depth survey. This snapshot survey is conducted four times per year and provides up-to-date salary increase budgets for 100+ markets across the globe. 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 slightly higher than this time last year. You can review more of the survey findings here. For this survey, there is a particular focus on salary increase projections for 2022. 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.. While nearly 80% of organizations reported that they are just in the preliminary stages of determining their 2023 annual . While pay is a driving factor for many workers, it is not the only one. 3 ways to emphasize the human dimension and focus on your people amid digital transformation. 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. Stay on top of the latest leadership news with This Week in Leadershipdelivered weekly and straight into your inbox. What can corporate leaders learn from the coaches manning the sidelines? Organizations should use this and other salary increase projection information directionally and engage leaders in a discussion focused on internal needs and objectives vs. over-indexing on external market data. That challenge of attrition rates can prove to be an opportunity with the right perspective. 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. 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). Be a part of our global team dedicated to building brighter futures for employers and their people. 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. Flex work and full-time remote work are increasingly part of the employee value proposition. From job search strategies to networking and interview tips, our coaches and tools are here to help. We use cookies to improve your experience. Determine the right incentive program for your company by evaluating eligibility, targets and actual incentive data for STI, sales and LTI. Engaging articles centering on business issues our clients have tackled. Cost of labor is a function of supply and demand, and is typically measured through compensation surveys that contain the going rate for jobs. While wage increases are inevitable, there's more to the solution. 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. 2 World Economic Outlook, International Monetary Fund, April 2021. It seeks to understand the drivers for talent international mobility, where mobility management fits in the organization, the organization and responsibilities of the Mobility function, digitalization & technology and framework trends. Overall salary increments projected for 2023 to average 4.8% across markets in Asia Pacific, but real salary increases are nominal. If you would like more details on the Mercer QuickPulse or US Compensation Planning Survey please contact us at 800-333-3070. The survey, conducted between October and November of 2021, looked at 1,004 U.S. companies and found that nearly 1 in 3 respondents (32%) had bumped up original salary increase projections from . First off, use this as directional information and combine it with additional sources. Your total rewards program for the new normal. We have provided the data excluding those organizations that are not providing an increase. By using our site, you agree that we can place cookies on your device. 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. Likewise, we are seeing an increase in the total increase budget for 2023: 4.2% for 2023, compared to 3.8% in 2022. 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.