Ensure your incentive programs are competitive. Salary Budget Snapshot Survey Info - Mercer 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. Marsh McLennan is the leader in risk, strategy and people, helping clients navigate a dynamic environment through four global businesses. From job search strategies to networking and interview tips, our coaches and tools are here to help. Salary Increase Projections 2023 - SHRM Employers in Thailand cautiously optimistic in projected salary 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. 2023 looks to be a 'banner year' for salary increases Still, only 24% of companies will communicate an employees grade/band upon request. For example, the US median increases have risen from 3.0% (during the middle of 2021) to 3.5% (as of now). To find out what creative approaches you can be taking, contact us here. However, there is some variation by industry: In order to accommodate the increasing annual increase budgets, salary structures are increasing as well. 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. 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. In 2020 when the pandemic began, Fusco adds, just . 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 . Merit increase budgets are tracking at 3.2%*, while total increase budgets, which also include other types of budgeted base pay increases, such as promotion awards, are tracking at 3.5%. To be considered a participant, confirmation of the data is required in each edition, even if your data has not changed. Actual increases were higher than predicted. This, combined with a strong job market, has heightened employee expectations for increased compensation this year; and employers are responding. The 2023 survey is now open. Across the industries surveyed, the Chemicals industry is expected to see the biggest rebound in salary increment at 5.5% in 2022, up from 4.9% in 2021. The majority (80%) of organizations are beginning to determine their 2023 annual increase budget, and overall salaries are going up. 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. While pay transparency might be in the news more and more, employers have been slow to modify their communication of pay ranges. Most organizations globally are reporting an uptick in their median total salary increase budgets for 2022 vs what they had planned in 2021. Senior Principal Kurt Groeninger talks about creating the foundation for your ESG strategy by setting up the right infrastructure for your organization. In the 1980s, most employers moved away from cost of living wage increases and instead focused on cost of labor the market rate for the job being performed. But is it enough? Enter the characters shown in the image. As a global leader in tech-optimized mining solutions, Hexagon Mining wanted to improve the efficiency of 23,000 global employees and ensure their safety. 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%. 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. Salaries in APAC continue to rise amid tight labor market and growing How will you use this information to develop your proposal, knowing its preliminary? Cost of labor is a function of supply and demand, and is typically measured through compensation surveys that contain the going rate for jobs. Developing a compensation strategy for remote employees will be central to their long-term retention. 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. However, this will change with the annual inflation figure, which was announced on Monday. Pay Raises Are Coming In 2022 - TheStreet 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. Please note: To be considered a participant, confirmation of the data is required in each edition, even if your data has not changed. And a quarter of employers plan to give increases in the range of 5%-7% in 2023. Current information on important topics related to compensation planning. 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. Need help? Scroll down for more information on this survey. 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. Participate to get your free snapshot report! Separate promotion budgets still dont seem to be the norm only 18% indicated that they have them. And Statistics Canada is now reporting CPI at 4.1% (Year-over-year August), the . 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. Total increases were slightly higher at 2.9%, decreasing to 2.6% when factoring in those not providing increases. Over half (53%) of organizations said they will comply with local laws and have no plans to broaden transparency beyond what is required. And of course, the reason is the tight labor market. 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. More than 72% indicated their budgets are finalized between October and January, with most selecting November or December. Mercer's researchers found that as of October 2021: While in todays period of high inflation this may seem disadvantageous to workers, the reality is that over the last two decades, this approach has delivered larger compensation increases to workers than it would have if budgets were indexedtoCPI. Forgotten your login user name or password? Salary hikes of 9-10% in 2022: Deloitte Survey - IndBiz The pace of change in the market may also warrant employers to make adjustments outside of the traditional annual paycycles. You may access your survey submission at any time to make updates. In March 2022, only 19% indicated that they were budgeting for off-cycle increases, but in this pulse survey, 53% of participants report that they will provide off-cycle increases. Determine the right incentive program for your company by evaluating eligibility, targets and actual incentive data for STI, sales and LTI. 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. That challenge of attrition rates can prove to be an opportunity with the right perspective. Under the 'Manage Cookies' option in the footer, accept the Functional cookies to allow the video to play. If you have participated in this survey within the past year, you will receive an email reminder during the participation period for each edition. As a result, while painful, at this point the US inflation levels have not risen to the level we typically see for wide-scale intervention in compensationprograms. From that lens, we are seeing that salaries across the board have increased 4.0%, but there are some significant differences by industry. 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. What can corporate leaders learn from the coaches manning the sidelines? Give us a call at 1-855-286-5302 or email surveys@Mercer.com. 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. 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) . Complete/update all the tabs identified below, prior to the deadline for each edition, to ensure you receive access to the results! Given the typical budget approval process at any organization, we get it. Under the 'Manage Cookies' option in the footer, accept the Functional cookies to allow the video to play. No two workplaces will have the same answers to these questions. 3 ways to emphasize the human dimension and focus on your people amid digital transformation. The Video could not be loaded because the privacy settings are disabled. Mercer compensation data reveals US employers are struggling to keep up And with the quit rate hovering near 20-year highs of 2.9percent per month, employees are taking advantage.