Need compensation planning data in Canada? Quebec is expected to see the biggest increases to salary in 2022, according to a survey. Most organizations globally are reporting an uptick in their median total salary increase budgets for 2022 vs what they had planned in 2021. The 2023 survey is now open. Most organizations globally are reporting an uptick in their median total salary increase budgets for 2022 vs what they had planned in 2021. Need compensation planning data in US? Overall median salary increments projected to hit 5% in Malaysia next year, up from 4.8% this year . Then, collect and incorporate the unique factors of your organization that will influence the budgets (e.g., financial performance, hiring needs, etc.). 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%. Given the continued impact of the pandemic on business conditions, accelerating inflation, and labor supply and demand imbalances, organizations felt compelled to adjust their compensation increase budgets in the latter part of 2021 and early 2022. The projected salary increments reflect guarded optimism as Thailand's Gross Domestic Product (GDP) is expected to grow by 3.8% in 2023, the highest in . 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. 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. Japan, New Zealand and Australia are the lowest at 2.3%, 2.6% and 2.8% respectively. Guleyin stated that the average wage increase expectation for 2022 for the 673 companies surveyed stood at 32%. 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%. These include: Increased utilization of select non-financial reward programs. The Video could not be loaded because the privacy settings are disabled. Flex work and full-time remote work are increasingly part of the employee value proposition. Learn about healthcare offerings that help you create an inclusive benefits program to meet the needs of all employees. 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. Mercer, an American asset management firm, projected an increase of 9% in salaries across industries in 2022. Developing a compensation strategy for remote employees will be central to their long-term retention. What metrics will be used to nurture their soft skills and leadership abilities? 46% of . 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. You may access your survey submission at any time to make updates. 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. 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. 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. Personalized benefits plans are a great way to account for these discrepancies. For this survey, there is a particular focus on salary increase projections for 2022. Simply revisit the survey and click the submit button to confirm previously entered . 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. 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. Now part of the Mercer QuickPulse TM survey series to give you the latest insights in compensation planning and total rewards. Total increases were slightly higher at 2.9%, decreasing to 2.6% when factoring in those not providing increases. The UK has . As a result, forecasted increases are likely understated to actual total increase practices by as much as 25-33% of the overall budget. This will continue to drive dissatisfaction with compensation programs and pressure employers to increase wages in the months ahead. SBS is not available to purchase for participants or non-participants; however, there are a number of purchase options available for Global Compensation Planning. 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. 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. 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. You need numbers to get the conversation started. 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. 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. Listening to your employees about their concerns and acting upon them is central to creating an effective DEI strategy. Compare your company to the market with base salary and total cash compensation data for up to 50 benchmark jobs. Japan, New Zealand and Australia are the lowest at 2.5%, 3.1% and 3.3% respectively. We have seen this manifest through an emerging shift in approach to compensation setting for low wage workers. The exception is Brazil, which is projecting a 6.2% salary budget increase in 2022 compared to 7.1% in 2021. Discover which types of transportation benefits are commonly offered and who is eligible to receive them with Mercer's survey on Transportation Policies. Likewise, we are seeing an increase in the total increase budget for 2023: 4.2% for 2023, compared to 3.8% in 2022. All Mercer events about talent, investment, and health issues. This snapshot survey is conducted four times per year and provides up-to-date salary increase budget data for 100+ markets across the globe. Overall salary increments projected for 2023 to average 4.8% across markets in Asia Pacific, but real salary increases are nominal. Give us a call at 1-855-286-5302 or email surveys@Mercer.com. Most employees today see compensation as a blackbox and dont understand how their pay is set. Organizations should also remember that pay is only one tool in their toolkit; take a broader view of total rewards and implement benefits that help meet workers needs particularly those that are low to no cost, but of high value like flexible working, or financial wellness programs.. While a majority of organizations are reporting little change in their base salary administration processes vs. pre-pandemic, there is a higher percentage of organizations utilizing: Increased use of select cash compensation programs in the new war for talent. Depending on the industry, we may continue to see budgets increase but some organizations bracing for a recession are likely providing conservative merit increases in an attempt to avoid layoffs later in the year. More than 72% indicated their budgets are finalized between October and January, with most selecting November or December. This Video is unable to play due to Privacy Settings. Recent articles reported by our team on important business-news developments. Given the typical budget approval process at any organization, we get it. 41% of organizations will have a higher salary increase budget in 2022 than 2021. Under the 'Manage Cookies' option in the footer, accept the Functional cookies to allow the video to play. Likewise, we are seeing an increase in the total increase budget for 2023: 3.9% for 2023, compared to 3.4% in 2022. It's time to get connected. Scroll down for more information on this survey. Take a proactive approach to managing your workforce in a competitive job market. Buy or Participate TRS - The Key to Designing Competitive Pay Packages worldwide. Enter the characters shown in the image. Second, consider the impact of inflation on low wage workers. 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. Stay ahead of everchanging regulations. Companies in the U.S. are planning to increase employee salaries by an average of 4.1% overall in 2023, WTW's recent Salary Budget Planning Report found. For most employers, cost of living increases are a thing of the past. 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. Just always keep in mind that you will likely see a change from the September to the November publication of the projected budget numbers. The average 2023 merit increase budget, including zeros, reported by survey participants came in at 3.4%, compared to the 3.2% actually delivered in 2022. And Statistics Canada is now reporting CPI at 4.1% (Year-over-year August), the . Under the 'Manage Cookies' option in the footer, accept the Functional cookies to allow the video to play. Participation is simple, with just one survey for all four editions. And with the quit rate hovering near 20-year highs of 2.9percent per month, employees are taking advantage. Salary Projections for 2022. Not only can doing so enhance retainment, it can also save your organization money in the longrun. Singapore, November 17, 2021 -Salary increases in Singapore are rebounding to pre-pandemic levels, with increments expected to average 3.5% in 2022, compared to 3.3% in 2021 and 3.6% in 2019. 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 tight labor market with high numbers of job openings, low numbers of unemployed workers, and heightened turnover may force employers to respond. By participating in the survey, you will automatically receive the results for free when they publish. Banking and Financial organizations tend to openly communicate their structure information, even without being asked, more so than other industries. 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. However, should the economic situation continue to decline, that may change this outcome. 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. 2023 Mercer (Canada) Limited. Then, collect and incorporate the unique factors of your organization that will influence the budgets (e.g., financial performance, hiring needs, etc.). Mercers approximately 25,000 employees are based in 43 countries and the firm operates in 130 countries. Compensation practices & salary increase projections for 2022. Welcome to the Workspan Family of Content. Simply revisit the survey and click the submit button to confirm previously entered data. . Individual performance is still the most common factor that employers use to determine the size of an individuals annual increase. Manage your transportation benefits efficiently and effectively. 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. Theres one thing certain about the future of work: unpredictability. 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. Top-performing individuals can be enticed with multi-year bonuses or lump sums to reflect current market premiums. According to Sunit Patel, Mercer's chief actuary for health and benefits, "One issue is that people have been deferring or cancelling care for the past two years and, while that lowers cost in the short term, it can increase cost over the longer term when medical conditions . 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. The projected increase is slightly . Organizations that recognize the specific lifestyles of their employees will have a head start in attracting and retaining toptalent. Participants will receive a complimentary executive summary report of the results! If you would like more details on the Mercer QuickPulse or US Compensation Planning Survey please contact us at 800-333-3070. . Follow Mercer on LinkedIn and Twitter. 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. This is according to the annual Total . Increases are forecast at 2.8 per cent, excluding freezes, nearly identical to the 2.7 per cent increase recorded in 2019. Simply revisit the survey and click the submit button to confirm previously entered data. Review statutory and supplemental benefit details for social security, retirement, medical, death, disability and more. Actual and projected pay increase data at the city and national levels. Within the survey, each topic can be accessed via the drop-down menu icon at the top of the page. Sign up to be notified when the next pulse survey opens for participation. Over half (53%) of organizations said they will comply with local laws and have no plans to broaden transparency beyond what is required. Small amounts of short-term stress can boost performance. To participate, go to the survey and enter your email address to begin participation. In the August edition of Mercers 2022 US Compensation Planning Survey pulse, 78% of the almost 1200 participant organizations reported that they are just in the preliminary stage of determining their 2023 annual increase budget. More centralized review, calibration, and control processes of base salary increases, Greater differentiation in increases between outstanding and competent performers, The use of sustainability, ESG and DEI metrics in incentive plans, Connecting the work the organization does to its mission, vision, and values, Clarifying and communicating employee growth and career development opportunities, Engaging with employees in organization change priorities, Building manager and leader effectiveness to build connections and inclusivity within their teams. As the US reverses restrictions on immigration, experts say firms may find more tech talent, which could reshape their business. While wage increases are on the horizon in almost every industry, employees are looking for more than just financial compensation for theirwork. This Video is unable to play due to Privacy Settings. The pace of change in the market may also warrant employers to make adjustments outside of the traditional annual paycycles. 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 . Given the financial uncertainty that currently exists combined with the tight labor market, employers should consider setting flexible budgets and prioritize investments in critical and fast-moving segments, such as their hourly workforce," said Lauren Mason,Senior Principal in Mercer's Career practice. Sky-rocketing prices have begun to raise many questions from US employers on how to manage compensation budgets in times of high inflation. With more states requiring external publication of pay ranges on job postings, it is critical that organizations build their own story around compensation because without the right context, employees will create their own narrative, added Mason. E2 focuses on 2023 and 2024 salary increase budgets (total and merit). The total base salary increase budget includes other base pay increases such as promotions and cost of living adjustments, in addition to merit increases. 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%. 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. Resources: Leading in the New Shape of Work. Cost of labor is a function of supply and demand, and is typically measured through compensation surveys that contain the going rate for jobs. One in three organizations say they have, or plan to take, a living wage approach for hourly wages, according to Mercers Compensation Planning Survey. More than 30 million viewers are expected to watch football this Thanksgiving. Determine the right incentive program for your company by evaluating eligibility, targets and actual incentive data for STI, sales and LTI. 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. While pay is a driving factor for many workers, it is not the only one. Employers are increasingly using off-cycle increases to combat retention concerns, along with other issues. In the near future, jobs are no longer going to be the organizing unit of work but skills would be. The fierce competition for talent and the anticipated economic recovery is putting pressure on salary increases for next year. All country salary values are the median increases presented at headline values, unless otherwise stated. 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. Its a mind-boggling number when you think about it: Half a trillion dollars on airport projects over just a few decades. Mr Swani added, Adopting skills-based pay approaches, either by replacing or complementing existing job-based models, creates a competitive edge in todays changing business environment by supporting the attraction, development and retention of critical skills.