Increases are forecast at 2.8 per cent, excluding freezes, nearly identical to the 2.7 per cent increase recorded in 2019. By using our site, you agree that we can place cookies on your device. 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. Bolstering the financial health of your employees can be accomplished through channels other than simple wage increases. New York, October 6, 2021 Employer-sponsored health plans face many unknowns in developing cost projections for 2022. 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. 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. Our whitepaper analyzes some of the big trends for 2022, such as improving employee wellness and leveraging remote work in your strategies . Understanding where your offer may not be competitive enough can give you insights into what employees truly want out of their workplace. 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. Separate promotion budgets still dont seem to be the norm only 24% indicated that they have them. . 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 . If you need more assistance, we have team members standing by to help. 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. Simply revisit the survey and click the submit button to confirm previously entered data. Buy or Participate TRS - The Key to Designing Competitive Pay Packages worldwide. This is our annual Compensation Planning Outlook for 2022. Just always keep in mind that you will likely see a change from the September to the November publication of the projected budget numbers. 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. 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. Under the 'Manage Cookies' option in the footer, accept the Functional cookies to allow the video to play. Our national magazine, with long and short form articles on critical leadership issues. 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). Likewise, we are seeing an increase in the total increase budget for 2023: 4.2% for 2023, compared to 3.8% in 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. 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. Current information on important topics related to compensation planning. How will you use this information to develop your proposal, knowing its preliminary? Likewise, employees with small children have also had a pandemic experience that is vastly different from those who have teenagers or no children. A separate Grant Thornton survey of 1,500 full-time U.S. employees found that 51% would give up a 10% to 20% salary increase . Second, consider the impact of inflation on low wage workers. 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. Most employers reported that the pay increases are in direct response to . 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. Contact Us. Its hard to say. Sign up to be notified when the next pulse survey opens for participation. 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. Under the 'Manage Cookies' option in the footer, accept the Functional cookies to allow the video to play. September 30, 2022 New York, United States 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. Ensure your incentive programs are competitive. While nearly 80% of organizations reported that they are just in the preliminary stages of determining their 2023 annual . While wage increases are inevitable, theres more to the solution. View our expertise through the lens of your existing organizational culture to determine what kinds of solutions may work best for your remoteteam. Start by examining your organizations work-life balance, opportunities for internal promotions and benefits packages. Employers who successfully reshape their workforce and total rewards models would gain an advantage in retaining talent and keeping employees engaged and productive even as they move beyond the pandemic. 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. In the August edition of Mercers 2022 Canada Compensation Planning Survey pulse, 84% of the almost 600 participant organizations reported that they are just in the preliminary stage of determining their 2023 annual increase budget. As expected, this year, the majority of organizations are planning to provide salary increases in 2022. All country salary values are the median increases presented at headline values, unless otherwise stated. The exception is Brazil, which is projecting a 6.2% salary budget increase in 2022 compared to 7.1% in 2021. BY Jim Wilson 19 Jul 2022. Banking and Financial organizations tend to openly communicate their structure information, even without being asked, more so than other industries. As a SBS participant, you will receive free access to individual reports for all available markets in which you have submitted data. 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. Download now to learn about all these trends in compensation strategy and more as the new normal continues to evolve. Scroll down for more information on this survey. Overall salary increments projected for 2023 to average 4.8% across markets in Asia Pacific, but real salary increases are nominal. 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. 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. 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. More than 30 million viewers are expected to watch football this Thanksgiving. 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. 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. Give us a call at 1-855-286-5302 or email surveys@Mercer.com. More than 72% indicated their budgets are finalized between October and January, with most selecting November or December. 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. 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. "2023 promises to be another banner year for employees seeking salary increases," says Chris Fusco, senior vice president of compensation at Salary.com. Once you have clicked Submit to complete the survey, a confirmation email will be sent to you. 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. Organizations in France, Russia, India and South Korea are all forecasting . If you need more assistance, we have team members standing by to help. 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. 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. Slightly higher than the pre-pandemic levels, the projected salary . Manage your transportation benefits efficiently and effectively. Likewise, we are seeing an increase in the total increase budget for 2023: 3.9% for 2023, compared to 3.4% in 2022. The Healthcare industry is lagging behind the market at 3.3% merit and 3.6% total increases. 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 . 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. So many things in our world are changing. 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. For this survey, there is a particular focus on salary increase projections for 2022. 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. The industries predicted to have the biggest salary increases in 2022 compared to what their increases were in 2021 are: Retail and wholesale trade: 2.8% to 3.6%; Finance: 2.7% to 3.5%; Everything you need to know about salary increases, economic indicators, mandatory pay schemes and more. 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. Employers are responding by developing DEI policies, all with the goal of making their organizational culture feel more welcoming to people with a wide range of backgrounds. 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. 2023 Mercer (Canada) Limited. This Video is unable to play due to Privacy Settings. India (9.4%) has the highest salary increase in 2022, followed by Vietnam (7.4%) and Indonesia (6.7%). Survey respondents are typically HR professionals, and their organizations cover a broad range of of size, geography, and ownership structure. However, should the economic situation continue to decline, that may change this outcome. Using this measure, inflation is projected to reach its highest level since indexing began, causing 7%-11% increases for most limits, based on their rounding levels. Evaluate IT position salaries with this in-depth survey. 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. 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. 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 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. Individual performance is still the most common factor that employers use to determine the size of an individuals annual increase. Given the typical budget approval process at any organization, we get it. Industry-wise, financial services is . We have seen this manifest through an emerging shift in approach to compensation setting for low wage workers. Providing more flexibility around days off for caregiver support could be one way to show the parents on your team that their wellness matters to the entire organization. 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 . A competitive leave policy is a benefit to everyone. 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. 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%. Our look at pressing problems and solutions for board directors. What can corporate leaders learn from the coaches manning the sidelines? Monitor employee movement trends in, out, and within companies around the world with data on turnover, workforce changes, hot skills and more. The total base salary increase budget includes other base pay increases such as promotions and cost of living adjustments, in addition to merit increases. Mercerbelieves in building brighter futures by redefining the world of work, reshaping retirement and investment outcomes, and unlocking real health and well-being. Organizations are generally split between those who include vs. exclude promotions, internal equity adjustments, market adjustments, key contributor increases and other off-cycle increases in these projections. Weve combined annual compensation survey data and recent rewards and benefits pulse surveys to provide anticipated salary increases for 2022. 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.