This snapshot survey is conducted four times per year and provides up-to-date salary increase budget data for 100+ markets across the globe. The survey found that no employers are currently planning to freeze pay in 2023. Could the results create an entirely new approach to succession planning? E2 focuses on 2023 and 2024 salary increase budgets (total and merit). Organizations that recognize the specific lifestyles of their employees will have a head start in attracting and retaining toptalent. For this survey, there is a particular focus on salary increase projections for 2022. except for those from the High Tech industry, can also expect higher bonus payouts this year, based on Mercer's mid-2022 forecast. Likewise, we are seeing an increase in the total increase budget for 2023: 3.9% for 2023, compared to 3.4% in 2022. Simply revisit the survey and click the submit button to confirm previously entered . Participation is simple, with just one survey for all four editions. With all that said, what are we looking at for 2023 preliminary budget projections? Salaries expected to rise faster in 2022 | Mercer ASEAN 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. Salaries expected to rise faster in 2022 | Mercer Hong Kong 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. Give us a call at 1-855-286-5302 or email surveys@Mercer.com. Wages are going up - is inflation the trigger? | Mercer US 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. BY Jim Wilson 19 Jul 2022. Salary increments for 2023 back to pre-pandemic levels as Malaysia 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. 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. 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. If you would like more details on the Mercer QuickPulse or US Compensation Planning Survey please contact us at 800-333-3070. . 2 World Economic Outlook, International Monetary Fund, April 2021. That's according to Mercer's newly released 2023 US Compensation Planning Survey, which revealed that employers are budgeting an average of 3.8% for merit increases in 2023, compared to the 3.4% delivered in 2022 - and 4.2% for their total increase budget for next year (compared to 3.8% this year). NEW YORK, September 30, 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 . Under the 'Manage Cookies' option in the footer, accept the Functional cookies to allow the video to play. 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. Theres an increased use of select cash compensation programs in the new war for talent and increased utilization of select non-financial reward programs. How much larger will increase budgets be in Canada for 2023? 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. The tight labor market with high numbers of job openings, low numbers of unemployed workers, and heightened turnover may force employers to respond. Workspan. Given the typical budget approval process at any organization, we get it. Mercer's Total Remuneration Survey 2023 is a salary and benefits study that offers in-depth reports and benchmarks for total compensation analysis. Now part of the Mercer QuickPulseTM survey series to give you the latest insights in compensation planning and total rewards. Sky-rocketing prices have begun to raise many questions from US employers on how to manage compensation budgets in times of high inflation. By participating in the survey, you will automatically receive the results for free when they publish. Stay ahead of everchanging regulations. Complete/update all the tabs identified below, prior to the deadline for each edition, to ensure you receive access to the results! Need help? Separate promotion budgets still dont seem to be the norm only 18% indicated that they have them. Discover which types of transportation benefits are commonly offered and who is eligible to receive them with Mercer's survey on Transportation Policies. Access information and participation materials for a range of compensation and benefits surveys conducted in the US and Canada. This snapshot survey is conducted four times per year and provides up-to-date salary increase budget data for 100+ markets across the globe. One in three organizations say they have, or plan to take, a living wage approach for hourly wages, according to Mercers Compensation Planning Survey. 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. This calculation gives us a look at how much average salaries are changing due to hiring rate increases and off-cycle adjustments. 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. While nearly 80% of organizations reported that they are just in the preliminary stages of determining their 2023 annual . Another way to boost their wealth without breaking the bank: expand the purpose of group savings plans to allow workers to save for a variety of goals, both short- and long-term. Canada Compensation Planning Survey | Mercer 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. From job search strategies to networking and interview tips, our coaches and tools are here to help. Most employees today see compensation as a blackbox and dont understand how their pay is set. And the Workspan Podcast offers timely insights from experts in a . If you need more assistance, we have team members standing by to help. 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. It's time to get connected. Follow Mercer on LinkedIn and Twitter. Most organizations globally are reporting an uptick in their median total salary increase budgets for 2022 vs what they had planned in 2021. Ensure your incentive programs are competitive. To address talent attraction and retention issues, organizations are putting greater emphasis on flexible work and pay-for-skills approaches. Missing your live results access code? As long as the economy and the job market remains strong, were likely to see continued upward pressure on wages, particularly with hourly workers and in certain industry sectors. 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. Then, collect and incorporate the unique factors of your organization that will influence the budgets (e.g., financial performance, hiring needs, etc.). 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. 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. Simply revisit the survey and click the submit button to confirm previously entered data. And a quarter of employers plan to give increases in the range of 5%-7% in 2023. 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.. Banking and Financial organizations tend to openly communicate their structure information, even without being asked, more so than other industries. A competitive leave policy is a benefit to everyone. The UK has gone from 2.5% to 3.0% (from the middle of 2021 to now), Australia from 2.4% to 3.0%, Brazil from 6.1% to 7.4%, Turkey from 18% to 30%, Ukraine from 6.5% to 10.3%, and Russia from 5% to 7.5%. Its a mind-boggling number when you think about it: Half a trillion dollars on airport projects over just a few decades. It can be difficult to keep up with relevant compensation trends and how they impact your organization. The pace of change in the market may also warrant employers to make adjustments outside of the traditional annual paycycles. Mercer's researchers found that as of October 2021: Salary Budget Snapshot Survey Info - Mercer Employers plan 4.1% pay raises for 2023 - HR Dive Together, were redefining the world of work, reshaping retirement and investment outcomes, and unlocking real health and well-being. When comparing the average base pay per employee from 2021 to 2022, wages increased an average of 4.9percent. Most employers reported that the pay increases are in direct response to . Compensation is going up. The Video could not be loaded because the privacy settings are disabled. The new type of job that ChatGPT is making companies scramble to fill. 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. 41% of organizations will have a higher salary increase budget in 2022 than 2021. Notably, when asked what they were doing to offset market inflation for their employees, only 38% indicated that they would provide an ad hoc off-cycle wage review and/or adjustment, while a similar percentages indicated that they were not planning to do anything. 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. Theres one thing certain about the future of work: unpredictability. 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. In 2020, inflation was a low 1.4% but salary increase budgets in 2020 and 2021 were higher (between 2.5% and 2.8%). Only 2% 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.